Case Note & Summary
The High Court quashed an FIR registered against bank officials and company executives alleging criminal offences in connection with bank guarantee transactions. The complainant, had alleged that the petitioners conspired to transfer funds from expired bank guarantees, causing him financial loss. The Court examined the sequence of events including the complainant's request to close the guarantees, subsequent invocation by BGR Energy Systems Limited, and the bank's actions. The Court found that the dispute was essentially contractual and commercial in nature, lacking the necessary criminal intent required for offences under the Indian Penal Code (IPC). The Court held that continuing criminal proceedings would amount to abuse of process and accordingly quashed the FIR.
Headnote
The High Court of Judicature at Bombay Nagpur Bench quashed the FIR registered against bank officials of Bank of India and executives of BGR Energy Systems Limited -- The FIR was registered based on a complaint by Yogesh Nagpure alleging criminal breach of trust and cheating in relation to bank guarantees -- The Court held that the allegations did not disclose prima facie offences under Sections 420, 403, 406, 418, 425, 427 read with Section 34 of the Indian Penal Code (IPC) -- The dispute was essentially civil in nature involving bank guarantee transactions -- The bank had acted on the request of the complainant to close the guarantees initially -- Subsequent invocation by BGR Energy Systems Limited was within the contractual framework -- No criminal intent or mens rea was established -- The Court exercised its inherent powers under Article 226 of the Constitution of India to prevent abuse of process
Premium Content
The Headnote is only available to subscribed members.
Subscribe Now to access key legal points
Issue of Consideration: Whether the FIR registered for offences under Sections 420, 403, 406, 418, 425, 427 read with Section 34 of the Indian Penal Code (IPC) against bank officials and company executives should be quashed when the dispute essentially involves civil liability arising from bank guarantee transactions
Premium Content
The Issue of Consideration is only available to subscribed members.
Subscribe Now to access critical case issues
Final Decision
The High Court allowed the writ petitions and quashed the FIR in Crime No.262/2015 registered with Police Station Ranapratap Nagar, Nagpur
