RAJNISH LATHAR Vs. STATE OF HARYANA

JUDGEMENT

(1.) FACTS , as uncontroverted at the time of arguments before this Court, are as under :

(2.) THE petitioner is sole proprietor of M/s. National Wires Products Ltd., village Ghatoli, District Jind. In the year 1983, he applied to the Haryana Financial Corporation (hereinafter referred to as the "Corporation") for a cash loan of Rs. 6.5 lacs. The loan aforesaid came to be sanctioned by the Corporation vide reference No. HFC-PP-244. As per the order of sanction, the amount was utilizable for the purchase of land, building and machinery and also for working capital etc. At the time of sanction of the loan, the petitioner mortgaged 18 marlas of land comprised in khasra No. 167, Killa No. 90/3, situated in Revenue Estate of village Ghatoli, District Jind with the Corporation. Along with the plaint, the engine, machinery, electric equipments, tools and accessories installed or located, affixed or attached in the factory were also mortgaged with the factory. However, the petitioner suffered heavy business losses and the manufacturing process in his factory came to a stand still. On account of default in the payment of amount, the Corporation took over the possession of the unit on 20.8.1997. The Corporation had, apart from other property of the petitioner, also taken possession of the 18 marlas of mortgaged land. As the petitioner suffered heavy business losses, the manufacturing process of the Concern came to a stand still and the petitioner became defaulter. The Corporation entered into the possession of the unit and the mortgaged land on 22.8.1997. Prior to the entering into possession of the unit aforesaid, a notice had been issued by the Corporation to the petitioner. In spite of the fact that the Corporation had entered into possession, the petitioner sold away some of the assets which were under mortgage.

(3.) THROUGH the present petition under Section 482 of the Code of Criminal Procedure, the petitioner raised a plea for the quashing of FIR aforesaid. The essential plea raised, in the course of the petition, is that the impugned transaction, at best, gives rise to a civil liability and the criminal law had been unjustly set into motion.