PREM NATH Vs. STATE OF PUNJAB

JUDGEMENT

(1.) S /Shri Prem Nath, Pawan Kumar and Kewal Krishan have filed the present petition under Section 482 Cr.P.C. for quashment of case FIR No. 140 dated 27.8.1996 under Sections 409/34 IPC Police Station Dharamkot, District Ferozepur.

(2.) THE case was registered on the basis of a letter written by District Manager, Punsup Ltd., Ferozepur and it can be quoted as follows :-

(3.) WHILE deciding the petition under Section 482 Cr.P.C., this Court has to see the prima facie allegations in order to find out whether any offence has been made out or not. As contended by the learned counsel for the petitioner, who relied upon the letter dated 16.9.1996 Annexure P-4 and submitted that as per this letter a joint verification was done and the goods to the extent of Rs. 31,23,838.20 were found short and the said amount has already been paid in that letter. This submission of the learned counsel for the petitioner is totally devoid of merit in view of the letter dated 11.10.1996 which has been written by the District Manager, Punsup, Ferozepur itself clearly indicating that after adjustment a sum of more than Rs. 20 lacs is outstanding against the petitioner. The goods were entrusted to the petitioner No. 1 for a specific purpose that after milling they shall return the rice to the Punsup which is the recognised agent of respondent Nos. 2 and 3. The firm thought it proper to misutilise the said paddy by conversion for its own benefit and prima facie committed an offence under Section 406 IPC. It is not necessary that every action of an offender must yield to be a civil liability. An action can give a civil as well as criminal liability and the petitioner cannot take the benefit of the plea that the matter is of civil nature and that there is an arbitration clause between the parties to the effect that in the event of any dispute the matter shall be referred to the arbitrator. The learned counsel for the petitioner has relied upon an authority Bal Kishan Das v. P.C. Nayar, AIR 1991 SC 1531. The reliance has been placed on para No. 4 of the said judgment and I would like to reproduce this para as under :- "After hearing the counsel for both the parties and perusing the documents, we are of the opinion that this matter is purely of a civil nature. As pointed out earlier there was an arbitration proceedings and further the matter is pending for more than 17 years. Having regard to all the circumstances, particularly that the matter is purely of a civil nature, we feel that it is a fit case in which the proceedings taken by the Chief Judicial Magistrate are to be quashed. Accordingly, the entire proceedings now pending on the file of the Chief Judicial Magistrate, Ganjan are quashed. The appeal is accordingly allowed."