Supreme Court Quashes Criminal Proceedings Against Accused in Cheating Case Due to Lack of Evidence and Abuse of Process. The Court held that the High Court should have exercised inherent powers under Section 482 of the Criminal Procedure Code, 1973 to quash the FIR as no prima facie case was made out against the appellant after police exoneration and compromise with the main accused.

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Case Note & Summary

The dispute arose from a criminal complaint filed by Nasib Singh (complainant) against Jaswant Singh (appellant) and others, alleging cheating and breach of trust under Sections 406/420 of the Indian Penal Code, 1860, for failing to secure a job abroad for the complainant's son after receiving payment. The complainant paid Rs. 7 lacs to Gurmeet Singh, who assured assistance from Jaswant Singh and Gurpreet Singh, but the job was not arranged, leading to the son's return. An inquiry by the police initially recommended no action, but an FIR was registered on 29.10.2009. After investigation, a police report under Section 173(2) of the Criminal Procedure Code, 1973, found a triable case only against Gurmeet Singh, exonerating Jaswant Singh and Gurpreet Singh due to lack of evidence. The complainant later compromised with Gurmeet Singh, leading to his acquittal on 26.09.2014. However, the trial court summoned Jaswant Singh under Section 319 CrPC on 11.06.2013, and he was declared a proclaimed offender on 28.04.2014 for non-appearance. Jaswant Singh filed a petition under Section 482 CrPC before the Punjab and Haryana High Court, seeking quashing of proceedings, but the High Court declined, citing his name in the FIR, though it granted bail conditions. The core legal issue was whether the High Court should have exercised its inherent powers under Section 482 CrPC to quash the proceedings against Jaswant Singh, considering the lack of evidence and the compromise with the main accused. The appellant argued that continuing proceedings amounted to abuse of process, as he was exonerated in the police report and the main accused had been acquitted. The respondent state likely contended the FIR implicated him. The Supreme Court analyzed that the power under Section 482 CrPC is to prevent abuse of process and secure ends of justice, referencing precedents like S.W. Palanitkar v. State of Bihar and P. Ramachandra Rao v. State of Karnataka. The Court reasoned that no evidence supported the allegations against Jaswant Singh, the police report exonerated him, and the compromise with Gurmeet Singh rendered further proceedings oppressive. It held the High Court erred in not quashing the case, as continuing it would be an abuse of process. The Supreme Court allowed the appeal, quashed the criminal proceedings against Jaswant Singh, and set aside the High Court's order, directing no coercive steps against him.

Headnote

A) Criminal Procedure - Inherent Powers Under Section 482 CrPC - Quashing of Criminal Proceedings - Criminal Procedure Code, 1973, Section 482 - The Supreme Court considered whether the High Court should have exercised its inherent powers to quash proceedings against the appellant, who was implicated in a cheating case. The Court held that the High Court erred in not quashing the proceedings, as there was no evidence against the appellant, the main accused had been acquitted after compromise, and continuing the case would amount to abuse of process. The Supreme Court quashed the proceedings to secure the ends of justice. (Paras 14-16)

B) Criminal Law - Cheating and Breach of Trust - Sections 406/420 IPC - Indian Penal Code, 1860, Sections 406, 420 - The case involved allegations of cheating and breach of trust against the appellant for failing to arrange a job abroad. The Court found that the police report exonerated the appellant due to lack of evidence, and the complainant's statements indicated payments were made to another accused. Held that no prima facie case was made out against the appellant under Sections 406/420 IPC, justifying quashing. (Paras 2-5, 14)

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Issue of Consideration

Whether the High Court erred in not exercising its powers under Section 482 of the Criminal Procedure Code, 1973 to quash the criminal proceedings against the appellant, given the lack of evidence and the compromise with the main accused.

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Final Decision

The Supreme Court allowed the appeal, quashed the criminal proceedings against the appellant, and set aside the High Court's order, directing no coercive steps against him.

Law Points

  • Exercise of inherent powers under Section 482 CrPC to prevent abuse of process and secure ends of justice
  • Quashing of criminal proceedings when no prima facie case is made out
  • Principles for invoking Section 482 CrPC as per precedents
  • Consideration of compromise with main accused and lack of evidence against appellant
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Case Details

2021 LawText (SC) (10) 67

Criminal Appeal No.1233 of 2021 (Arising out of SLP (Crl.) No 7072 of 2021)

2021-10-20

Vikram Nath, J.

Shri Lakhwinder Singh Mann, Shri Jaspreet Singh Gogia

Jaswant Singh

State of Punjab & Anr.

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Nature of Litigation

Criminal appeal seeking quashing of criminal proceedings under Sections 406/420 IPC

Remedy Sought

Appellant prayed for quashing of the order dated 06.02.2020 passed by the High Court and the criminal proceedings arising out of FIR No. 179 dated 29.10.2009

Filing Reason

Appellant challenged the High Court's refusal to quash proceedings under Section 482 CrPC, alleging lack of evidence and abuse of process

Previous Decisions

High Court declined to quash proceedings but granted bail; Trial Court summoned appellant under Section 319 CrPC and declared him a proclaimed offender; Compromise led to acquittal of co-accused Gurmeet Singh

Issues

Whether the High Court erred in not exercising its powers under Section 482 CrPC to quash the criminal proceedings against the appellant

Submissions/Arguments

Appellant argued for quashing due to lack of evidence and compromise with main accused Respondent likely contended the FIR implicated the appellant

Ratio Decidendi

The inherent power under Section 482 CrPC should be exercised to prevent abuse of process and secure ends of justice, especially when no prima facie case is made out against the accused, as evidenced by police exoneration and compromise with co-accused.

Judgment Excerpts

"In our view, the present one is amongst those fittest cases where the High Court ought to have exercised its powers under Section 482 Cr.P.C. and ought to have secured the ends of justice by closing the proceedings against the appellants." "The power under Section 482 Cr.P.C. is to be exercised to prevent the abuse of process of any Court and also to secure the ends of justice."

Procedural History

Complaint filed on 18.08.2009; FIR registered on 29.10.2009; Police report under Section 173(2) CrPC exonerated appellant; Trial Court summoned appellant under Section 319 CrPC on 11.06.2013; Appellant declared proclaimed offender on 28.04.2014; Compromise led to acquittal of co-accused on 26.09.2014; High Court petition under Section 482 CrPC filed in September 2018; High Court order dated 06.02.2020 declined quashing but granted bail; Supreme Court appeal filed and notice issued on 24.09.2021.

Acts & Sections

  • Criminal Procedure Code, 1973: Section 482, Section 173(2), Section 319
  • Indian Penal Code, 1860: Section 406, Section 420
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