RAM KUMAR Vs. STATE OF BIHAR

JUDGEMENT

(1.) THE petitioner has prayed for quashing of the order dated 06.04.1998 taking cognizance under Sec. 409 of the Indian Penal Code against the petitioner in C/l Case No. 136 of 1998 and also the entire criminal prosecution against him which was pending before the Judicial Magistrate, Jamshedpur.

(2.) THE opposite party No. 2, Jamshedpur Co -operative House Building Society Ltd. filed a Complaint Case against the Manager, Canara Bank, Safdarganj Development Area, New Delhi before the Chief Judicial Magistrate at Jamshedpur. In short, the allegations in the complaint petition was that the complainant entered into an agreement on 09.09.1992 with M/s. Walia Construction (Builders) of New Delhi for construction of multi -storied buildings at Jamshedpur. It was alleged that the accused executed Bank Guarantee No. 317/ 95, dated 12.12.1995 for Rs. l, 00,000.00 . Bank Guarantee No. 318/95, dated 12.12.1995 for Rs. 2,00,000.00 and Bank Guarantee No. 319/95 dated 12.12.1995 for Rs. 2,00,000.00 in favour of the complainant in lieu of security deposit or in lieu of deduction to be made from the bills of the said M/s. Walia Builders for the fulfilment of the terms and conditions contained in the contract. It is said that the accused intimated to the complainant about the extension of the period of validity of the aforesaid three Bank Guarantee till 10.09.1996 vide their letter dated 11.03.1996.

(3.) ACCORDING to the complainant, the accused was well aware of the fact that M/s. Walia Builders had filed Title (Arbitration) Suit No. 83/96 against the complainant in the Court of Subordinate Judge -I. at Jamshedpur in which the accused was also one of the defendant and a petition for injunction was also filed by M/s. Walia Builders in which the learned Sub -Judge had directed to maintain status quo vide his order dated 07.01.1997 and therefore, the action displayed by the accused in his letter dated 30.08.1997 informing the complainant that the complainant was not entitled to invoke the Bank Guarantees, the same amounted to criminal breach of trust ns the accused deliberately acted in violation of the aforesaid legal contract describing the mode in which such trust was to be discharged.