DHARMESH BRAMHIN Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) Instant misc. petition has been filed by the petitioner for quashing of FIR No. 229/2021 registered at Police Station Khamnor, District Rajsamand for offence under Ss. 420, 406, 120B IPC and Ss. 4, 5, 6 of Prize Chits & Money Circulation Schemes (Banning) Act, 1978..

(2.) Brief facts of the case are that an FIR No. 229/2021 came to be lodged by the complainant against the petitioners stating therein that the present petitioners came to his village about three and half years back and suggested to invest money in their company and assured that the company will provide 5% dividend. The complainant invested a sum of Rs.14.00 lakhs on different dates. however, the petitioners accused failed to give returns and also did not refund the invested amount. Thus, the accused persons cheated the complainant and took money from the complainant.

(3.) Counsel for the petitioners submits that as per definition of "conventional chit" means a transaction in which a person responsible for the conduct of the chit enters into an agreement with a specific number of persons that every one of them shall subscribe a certain sum of money by way of periodical instalments, for a definite period and that such subscriber, shall in his turn, as determined by lot or by auction or by tender or in such manner as may be provided for in the chit agreement be entitled to a prize amount, whereas, in the present case, the company of petitioners dealt in business of shares/stock securities and therefore, offence under Ss. 4, 5, 6 of the Act of 1978 is not at all made out. It is argued that petitioners were operating the business of shares and the complainant had invested his amount in stock securities and as per terms of business, the investor and operator both are equally liable for loss and profit. Thus, if there is any loss to the company, the liabilities passes on to both the parties. It is argued that the complainant had invested a sum of Rs.4.00 lakhs in the company, out of which a sum of Rs.3.00 lakhs has already been withdrawn by the complainant. Similarly, complainant's brother Basant Singh had deposited a sum of Rs.1.00 lakh, out of which, Rs.90,000.00 has been refunded in the account of Basant Singh. It is also argued that the basic ingredient of offence of cheating under Sec. 420 which is fraudulent or dishonest inducement (which is required to be in existence since inception) is clearly lacking. The complainant only with a view to harass and pressurize the petitioner, has filed the present FIR. Therefore, it is prayed that the FIR may be quashed. He placed reliance on judgment of Hon'ble Apex Court in thecase of Joseph Salvaraj Vs. State of Gujarat, reported in AIR 2011 SC 2258, Binod Kumar Vs. State of Bihar reported in 2014 SCW 6310 and order passed by Jaipur Bench of this Court in the case of Bhupiner Singh Kochar & Ors. Vs. State of Rajasthan & Anr., reported in 2015 WLC (Raj.) UC 663.