HEM LATA Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THIS is a petition filed by Hem Lata under section 482 of the Code of Criminal Procedure, for quashing First Information Report No. 120 of 1983 dated October 18, 1984 Police Station City Khanna under Section 420 Indian Penal Code, consequently and, the order Sub Divisional Judicial Magistrate, Khanna, dated February 19, 1987 framing charge against the petitioner.

(2.) BRIEFLY stated the facts are that the petition' petitioner Hem Lata entered into a partnership with one Gurnam Singh son of Hazura Singh, and Smt. Harjinder Kaur wife of Gurjinder Singh to carry on a business of sale/resale of tractor and tractor parts under the name and style of Messrs Rajan Enterprises at Bharat Nagar Chowk, Ludhiana. The Partnership Deed was duly executed on January 8, 1980. Soon after the execution of the Partnership Deed, the partnership agreement was modified by a written agreement, on February 6, 1980. In clause (1) of the modified agreement, dated February 6, 1980 it is stated, that the business of the Firm Messrs Rajan Eenterprises shall be carried on by Shri Gurnam Singh, the party of the 1st and Smt. Harjinder Kaur and Smt. Hem Lata parties of the 2nd and 3rd parts shall be sleeping partners only and they shall not interfere in the working of the partnership business. Some where in March 1983 the abovesaid Firm Messrs Rajan Enterprises opened a Cash Credit Account with a limit of Rupees three and a half lakh on pledge basis, to secure the credit, the Partnership Firm pledged some tractors and spare parts either in the show-room or elsewhere under the control of State Bank of Patiala, Khanna. The Firm Messrs Rajan Enterprises took loan from the Bank. There was default in payment of the loan by the Partnership Firm and the Bank filed a civil suit for recovery of Rs. 5,63,100.40 against the Partnership Firm, the partners and the guarantors. The suit of the Bank was decreed by the Subordinate Judge First Class, Khanna, vide his judgment and decree dated January 20, 1989. The Bank also lodged a first Information Report with Police Station City Khanna under sections 379, 380, 406, 409 and 420, Indian Penal Code, read with sections 109 and 120-B, Indian Penal Code, against the petitioner, the other partners and two other persons. Consequently, the Sub Divisional Judicial Magistrate Khanna, vide his order. dated February 19, 1987, charged the petitioner along with five others under sections 420 and 120-B, Indian Penal Code.

(3.) I need not dilate upon all the three grounds, as the I petition succeeds on the first ground alone. A perusal of the agreement, Annexure P 1, with the petition shows that the business of Messrs Rajan Enterprises was to be carried on by Shri Gurnam Singh partner and the other two partners, namely, the petitioner Hem Lala and Smt. Harjinder Kaur were to be the sleeping partners only and it is specifically stated in the agreement that the sleeping partners shall not interfere in the working of the partnership business.