Kotak Mahindra Bank Ltd v. State of Punjab and Anr

2023:oPHHC:o088534o 205o INoTHEoHIGHoCOURToOFoPUNJABoANDoHARYANAo AToCHANDIGARHo o CRM-MoNo.36788oofo2017o(O&M)o thReservedoono:o5 oJuly,o2023o thDateoofodecision:o12 oJuly,o2023o KotakoMahindraoBankoLimitedo …oPetitionero Versuso StateoofoPunjabo&oanothero …oRespondentso o CORAM:ooHON'BLEoMRS.oJUSTICEoMANJARIoNEHRUoKAULo o Present:ooo Mr.oR.S.oCheema,oSenioroAdvocateowithoo Mr.oArshdeepoS.oCheemaoandoMr.oSatishoSharma,oo Advocatesoforotheopetitioner.o Mr.oAmitoRana,oSr.oDeputyoAdvocateoGeneral,oPunjabo forotheorespondentoNo.1/State.o Mr.oVineetoSehgal,oAdvocateofororespondentoNo.2.oo MANJARIooNEHRUooKAUL,ooJ.oo

1.k Theopetitioner,oKotakoMahindraoBankoLimitedo(hereinaftero referredotooas,o'theoBank')oisoseekingoquashingoofoFIRoNo.159odatedo

31.12.2010o(AnnexureoP-23)ounderoSectiono420oIPCoregisteredoatoPoliceo Stationo Cantonment,o Amritsaro Cityo alongo witho allo consequentialo proceedingso arisingo therefromo includingo ordero datedo 10.05.2017o st(AnnexureoP-32)opassedobyotheolearnedoJudicialoMagistrateo1 oClass,o Amritsar,o video whicho theo cancellationo reporto submittedo byo theo investigatingoagencyohadonotobeenoacceptedoandofurtheroinvestigationo k 2k

2.k Learnedo senioro counselo too layo ao challengeo too theo FIRo ino questionoasowelloasotootheoimpugnedoorder,ohasointeroaliaosubmitted:-o

(i)k ThatotheopetitioneroisoaobankingodivisionoofoKotakoMahindrao Groupoandoprovidesoaonumberoofofinancialoservicesothrougho itsovariousodivisions,owhichofunctionoindependentlyoofoeacho other.o Oneo ofo theo divisionso ofo theo Bank,o Corporateo Advisoryo Groupo (foro short,o 'CAG'),o waso engagedo ino providingo financialo advisoryo serviceso too Corporates.o Theo servicesoofoCAGowereoonlyoadvisoryoinonatureoandodidonoto envisageo providingo anyo financialo assistanceo oro anyo guarantee.oo

(ii)k Thato anothero divisiono ofo theo Bank,o Asseto Reconstructiono Divisiono (foro short,o 'ARD'),o waso intoo theo businesso ofo purchasingoNon-PerformingoAssetso(foroshort,o'NPA')ofromo banksoandofinancialoinstitutions,oandotheiroresolution.oTheo sameo waso beingo doneo byo ARDo aso pero theo guidelineso ofo ReserveoBankoofoIndiao(foroshort,o'RBI')oandolawsoofotheo land.oThus,oevidentlyobothoCAGoandoARDobeingoseparateo divisionso wereo performingo distincto functionso ando theiro functionso wereo noto onlyo independento buto dido noto eveno overlapoeachoother.oo

(iii)k ThatoinotheomonthoofoJuneo2006,oCAGowasoapproachedobyo respondento No.2o (hereinaftero referredo too as,o 'theo complainant')oforoprovidingoadvisoryoservicesoquaotheodebtso k 3k owedobyotheocomplainantotootheoCenturianoBankoofoPunjabo Limitedo (foro short,o 'CBOP')o ando othero banks.o Quao theo defaultsomadeoinorepaymentoofoloan,oDRToproceedingsowereo alsooinitiatedoinotheoyearo2007,oagainstotheocomplainantobyo theoCBOP,ofororecoveryoofomoreothano`o33,95,07,968.00.oo

(iv)k Thatoono17.04.2007,oanoengagementoletterowasoissuedobyo CAGotootheocomplainant,owhoopaidoanoupfrontofeeoofo`o2.00o lacso too CAG.o Theo scopeo ofo engagemento ofo CAGo waso limitedotooanoadvisoryoroleoandoinorenderingoassistanceotoo theo complainanto ino tyingo upo witho investorso too meeto theo fundingoforoOneoTimeoSettlemento(foroshort,o'OTS').oInotheo meantime,oCAGowasoinformedobyotheocomplainantothatoheo wasoalsoonegotiatingowithoCBOPoandowasoinotheoprocessoofo arrivingoatoOTSoforoitsodebts.oCAGowasoalsoorequestedobyo theocomplainantotoolookoforoinvestorsoforoinfusingofundsoino theosaidoregard.oHowever,odespiteobestoandoearnestoeffortso byo CAG,o ito waso unableo too findo anyo investor,o whoo waso willingo ando readyo too infuseo fundso aso desiredo byo theo complainant.o Actingo ino goodo faith,o CAGo informedo theo complainanto abouto theo ARDo ando suggestedo thato ito couldo exploreo theo possibilityo ofo ao buyouto ofo theo debtso ofo theo CompanyoofotheocomplainantobyoARDoitself.oItowasoaomereo suggestiono giveno too theo complainanto byo theo CAGo ino itso advisoryo capacity.o Subsequently,o video emailo datedo k 4k

18.09.2007,otheocomplainantowasoalsooadmittedlyoapprisedo thatoinocaseoanyotransactionowasotoobeomadeowithoARD,oito wouldobeoindependentoofotheotermsoenteredointoobetweenotheo partiesovideo letterodatedo 17.04.2007o andotheo CAGo wouldo stillocontinueotooactoinoitsoadvisoryocapacity,otoowhichotheo complainantoputoinoaorequestoforotheotermsoofotheoproposal.o Thereafter,oitowasoonlyoonotheocomplainantogivingoaogreeno signal,othatoARDoenteredointooaodeedoofoassignmentodatedo

27.09.2007o witho CBOPo foro buyouto ofo theo debto ofo theo Companyo ofo theo complainanto ando theo saido takeovero waso welcomedobyotheocomplainantoalso.o

(v)k Thato theo complainanto waso fullyo awareo ofo theo DRTo proceedings,owhichohadobeenoinitiatedobyoCBOPoagainstoito beforeotheoaforesaidodeedoofoassignmentowasoenteredointoo betweenotheoBankoandoCBOP.oAfteroacquiringotheodebtsoofo theocomplainant,oARDofiledoanoapplicationoforosubstitutiono ofoitsonameoinoplaceoofoCBOP,owhichowasothenoallowedobyo theo DRTo Chandigarho video ordero datedo 06.11.2011.o Theo applicationoofoARDowasoallowedobyoDRT,oChandigarhovideo orderodatedo03.04.2008.oInosupport,oattentionoofothisoCourto hasobeenodrawnotooAnnexureoP-4.o

(vi)k Thato ino theo lettero datedo 06.11.2007o (Annexureo P-5),o theo complainantohimselfoofferedo`o10.00ocroresoasosettlementotoo ARDoinorespectoofotheodebtoassignedobyoCBOPotooARD.oIno k 5k supportoattentionohasobeenodrawnotooAnnexureoP-6odatedo

10.01.2008,owhichoisoanoemailosentobyotheocomplainantotoo ARD,owhereinoheoreiteratedothatohisoCompanyowasoreadyotoo settleotheodebtsoforoanoamountoofo`o10.00ocrores.oAttentiono ofothisoCourtohasoalsoobeenodrawnotooAnnexureoP-7odatedo

14.12.2007,owhereinoalsootheocomplainantoagainoconfirmedo thatoheowasowillingotoosettleotheomatteroasoperotheotermso agreedouponovideoAnnexureoP-6odatedo10.01.2008.oo

(vii)k Thato theo complainant,o foro reasonso veryo strange,o dido noto executeotheotermsoofotheoconsentoonooneopretextoorotheoother.o Insteado ofo makingo payment,o aso agreedo upon,o theo complainanto backedo outo ofo theo commitmento madeo foro repaymento ofo settlemento byo lettero datedo 18.03.2013o ando furtherostatedothatotheocommitmentomadeoonobehalfoofotheo Companyowouldostandowithdrawn.oThereafter,oinoorderotoo evadeohisoliability,otheocomplainantomaliciouslyoinstitutedoao civilosuitoagainstotheoBank.oInosupport,oattentionohasobeeno drawnotooaocopyoofotheoplaint,oannexedoasoAnnexureoP-12.o Thus,oitowasoevidentlyoaodisputeoofocivilonature.oNotoonlyo this,oanoapplicationounderoOrderoVIIoRuleo11oCPCowasoalsoo filedobyotheoBank,owhichowasoacceptedobyotheoCourtoando consequently,o theo plainto filedo byo theo complainanto waso rejected.oInosupport,olearnedoseniorocounselohasodrawnotheo attentionoofothisoCourtotooAnnexureoP-15.oo k 6k

(viii)k ThatotheocomplainantofiledoaocomplaintobeforeotheoSenioro SuperintendentoofoPolice,oAmritsaroono30.06.2008owithoano obliqueomotiveotooharassoandoarm-twistotheoBank.oNoticeo wasothenoissuedobyoDSP,oCiviloLines,oAmritsarouponotheo Bank.oAfteroreceiptoofotheoaforementionedonotice,otheoBanko approachedothisoCourtobyowayoofoCWPoNo.17522oofo2008.o Theoaforementionedowritopetitionowasodisposedooffobyothiso Courto byo observingo thato sinceo theo mattero waso pendingo beforeotheoDRT,otheoDSPowasonotojustifiedoinoissuingoanyo noticeounderoSectiono160oCr.P.C.ouponotheoBank,omoreoso,o wheno ito seemedo too beo ao caseo ofo purelyo civilo nature.o Ino support,olearnedoseniorocounselohasodrawnotheoattentionoofo thisoCourtotooAnnexureoP-22.oo

(ix)k Thato aso ifo ito waso noto enough,o ono 31.12.2010,o theo complainanto goto theo FIRo ino questiono lodgedo againsto theo BankoandoitsoofficialsounderoSectiono420oIPC.oTheoBanko wasothenoconstrainedotoomoveothisoCourtoandofileoCRM-Mo No.5689oofo2011oseekingoquashingoofotheoFIRoinoquestion.o Duringo theo pendencyo ofo theo aboveo mentionedo petition,o ao detailedo investigationo waso carriedo outo byo theo policeo ando sinceonoosubstanceowasofoundoinotheoallegationsolevelled,oao cancellationoreportowasoprepared.oHence,oCRM-MoNo.5689o ofo2011owasodisposedoofobyothisoCourtowitholibertyotootheo complainanto too challengeo theo cancellationo report.o k 7k Thereafter,otheocancellationoreport,oonobeingopresentedobyo theoinvestigatingoagencyobeforeotheotrialoCourt,owasorejectedo ino ao mechanicalo mannero merelyo ono theo groundo thato theo complainantodidonotoagreeowithotheocancellationoreport;oando video ordero datedo 04.07.2013o (Annexureo P-27),o theo trialo Courtoorderedotheopoliceotoore-investigateotheomatter.oTheo aforesaido ordero waso challengedo byo theo Banko byo wayo ofo CRM-Mo No.2621o ofo 2014.o Thiso Courto disposedo offo theo aforesaidopetitionovideoorderodatedo10.09.2015o(Annexureo P-31)obyoobservingothatotheotrialoCourtohadofailedotooapplyo itso mindo beforeo passingo theo order,o ando theo mattero waso remandedobackotootheotrialoCourtotoodecideoitoafresh.oo

(x)k Thatorightofromotheotimeowhenotheocomplainantoapproachedo theoCAGoinotheoyearo2006,oleavesonoomanneroofodoubtothato firstlyotheoessentialoingredientsonecessaryotooconstituteoano offenceounderoSectiono420oIPCoareowoefullyoamissoinotheo caseo ino hand.o Thereo cannoto beo saido too beo anyo dishonesto intentionoonotheopartoofotheoBankotoodeceiveotheocomplainanto inoanyomannerowhatsoever.oItoisoaomatterooforecordothatoito waso theo complainant,o whoo himselfo hado approachedo theo ARDoandostillofurther,ohadoalsoowelcomedotheotakeoveroofo itsodebtsobyoARDofromoCBOP.oTherefore,otheocomplainanto wasowelloawareofromotheowordogoothatoitsodebtohadobeeno purchasedobyoARD.oFurther,othereoisoenoughodocumentaryoo k 8k materialo ono recordo too showo thato theo complainanto hado himselfoexpressedohisowillingnessotoosettleotheodebtoforoano amountoofo`o10.00ocroresoandohadoreiteratedohisowillingnesso timeoandoagain,osoomuchoso,owhenotheoBankohadoapproachedo thiso Courto too challengeo reinvestigationo datedo 04.07.2013o storderedobyolearnedoJudicialoMagistrateo1 oClass,oAmritsar,o itowasotheocomplainantowhoohadoyetoagainoapproachedotheo BankoforoOTSovideoletterodatedo18.08.2009o(AnnexureoP-35).o Ito haso beeno assertedo thato theo conducto ofo theo complainantopriorotootheoregistrationoofotheoFIRoandoeveno thereafter,orevealsothatoatonoopointoinotime,otheoBankohado practisedo deceptiono upono theo complainant,o rather,o theo complainanto hado fullo knowledgeo ando hado alwayso beeno willingotoogoothroughowithotheoOTSoforosettlementoofoitso dues.oHowever,osinceoheowasounableotooarrangeotheorequisiteo funds,oheobackedooutoofotheosettlementoandowasoevidentlyo lookingoforoexcusesotoopressurizeotheoBankotoowaiveooffoitso claim.o

(xi)k Thatoitoisoessentiallyoaodisputeoofocivilonatureoandosinceotheo DRToisoseizedoofotheomatter,othereoisonothingowhichowouldo stopotheocomplainantofromoraisingoallotheoissuesobeforeotheo appropriateoforum.oHeosubmitsothatoonceotheocomplainanto hadomadeoanoofferoofo`o10.00ocroresoandohadoexpressedohiso willingnessotootheotermsoandoconditions,oitodidonotolieoinohiso mouthonowotoosayothatotheoBankohadokeptoitofromothemothato k 9k theoNPAohadobeenopurchasedoforoaomucholesseroamountothano theoOTSowhichowasobeingoofferedotootheocomplainant,omoreo so,owhenotheooverallodebtowasoovero` 33,95,07,968.00.oo

(xii)k WhileodrawingotheoattentionoofothisoCourtotooAnnexureoP-29,owhichoisoaojudgmentorenderedobyoaoDivisionoBenchoofo thiso Courto ino CWPo No.7187o ofo 2013o decidedo ono

08.04.2013,olearnedoseniorocounselohasoalsoosubmittedothato theocomplainantoinotheosaidowritopetitionohadochallengedotheo possessiono noticeo sento too himo aftero theo Banko hado beeno assignedo theo debtso belongingo too theo complainant.o Theo Hon'bleoDivisionoBenchoofothisoCourt,owhileodismissingotheo saidopetitionofiledobyotheocomplainant,oupheldotheovalidityo theodeedoofoassignmentoandoalsooobservedothatothereowasonoo embargooonotheoBankotooseekorecoveryoofotheodebtsoassignedo too it.o Thus,o fromo theo observationso ofo theo court,o ito waso evidentothatothereowasonotoevenoaobreachoofocontract,omucho lessoaofraudobeingoplayedoonotheocomplainant.oRatheroitowaso theo complainant,o whoo hado initiatedo criminalo proceedingso againstotheoBankowithoanoulterioromotiveotoowriggleooutoofo itsoliabilityotoopayodebt.ooo

(xiii)k LastlyotheoattentionoofothisoCourtohasobeenodrawnotootheo impugnedo ordero datedo 10.05.2017o video whicho theo trialo Courtohasodirectedotheopoliceotooreinvestigateotheomatterobyo submittingothatotheosaidoorderoisoinotheoteethoofoorderodatedo k 10k

10.09.2015opassedobyothisoCourt,oasoaoperusaloofotheosameo wouldorevealothatoitohasobeenopassedoinoexactlyotheosameo termsoasoorderodatedo04.07.2013owhichohadoearlierobeenoseto asideobyotheocourt.oHowever,oyetoagainotheotrialoCourtoinotheo sameo mechanicalo manner,o directedo theo policeo too furthero investigateo theo mattero onlyo ono theo groundo thato theo complainantodidonotoagreeowithoit.oo

3.k Perocontra,olearnedocounseloforotheocomplainant/respondento No.2,owhileoopposingotheoprayeroandosubmissionsomadeobyotheocounselo opposite,ohasoprayedoforodismissaloofotheopetition,oonotheogroundsothato theoimpugnedoorderoisoaorevisableoorderoandotheoBankocouldonotohaveo bye-passedotheosaidoremedyoasoprovidedounderotheoprovisionsoofolawobyo straightawayoapproachingothisoCourtounderoSectiono482oCr.P.C.oHeohaso furtherosubmittedothatotheoFIRoinoquestionowasoregisteredoonlyoafteroao detailedo preliminaryo enquiryo hado beeno conductedo byo senioro policeo officialso includingo theo Additionalo Commissionero ofo Police,o Amritsaro whicho ino turno hado beeno approvedo byo theo Commissionero ofo Police,o Amritsar,osinceothereowasoprimaofacieosufficientoevidenceoagainstotheo BankowithoregardotootheocommissionoofoanooffenceounderoSectiono420o IPC.ooo

4.k Whileo substantiatingo hiso arguments,o learnedo counselo submitsothatoCAGoandoARD,onoodoubtowereotwoodifferentodivisionsobuto theyobothowereoworkingounderotheoexclusiveocontroloofotheoBank,ohence,o theoBankocouldonotoescapeoitsoresponsibility.oLearnedocounseloargueso k 11k thatoonotheofaceoofoitothereowasoaoconflictoofointerestobetweenotheoCAGo providingofinancialoguidanceotootheocomplainantotoosettleoandogetooutoofo itsodebts;oandoARDoacquiringotheodebtsoofotheocomplainant.oItoisohighlyo inconceivableo thato whereo oneo divisiono ofo theo banko i.e.o ARDo waso motivatedotoomakeoaoprofitobyoacquiringotheodebtsoofotheocomplainant;o theootherodivisionoi.e.oCAGounderotheocontroloofotheosameobank,owouldo haveoactedoinogoodofaithotooguideotheocomplainantotoogetooutoofothato debt.oItohasobeenofurtherosubmittedothatowhileoCAGowasoactingoasoao consultantoitofailedotoogetoinvestorsoandoinsteadoreferredotheocomplainanto tooARD,owhichoinoturnopurchasedohisoloanoaccountofromoCBOPoforoao mereo`o4.35ocrores,owhichowasoaomucholesseropriceothanowasoportrayedo tootheocomplainant.oHowever,oOTSowasoofferedotootheocomplainantoatoao whoppingo10ocrores.oLearnedocounselohasoarguedowithovehemenceothato theo moduso operandio behindo theo entireo operationo waso too extracto unjustifiableomoneyoasoonooneohand,ooneoofotheodivisionsoofotheoBank,o i.e.oCAG,owasobeingopaidoconsultancyofeesobyotheocomplainantotoohelpo himofreeohisoCompany'sopropertiesoofoanyochargeoandoonotheootherohand,o theootherodivisionoi.e.oARDohadosteppedointootheoshoesoofocreditoroofotheo complainanto ando sento ito ao possessiono noticeo too acquireo theo sameo properties.o Learnedo counselo haso submittedo thato allo along,o theo complainantohadobeenokeptoinotheodarkoandowasounawareoofotheoactualo transactionowhichotookoplaceobetweenoCBOPoandoitowasoevidentothatotheo complainantohadobeenomisledobyotheoBankoasotheolatterohadoundervaluedo hisoproperties,owhileoseekingoinvestors.oo k 12k

5.k Heosubmitsothatoitoisoonlyowhenotheocomplainantocameotoo knowothatotheoBankohadopurchasedohisoNPAoforo`o4.35ocroresofromo CBOP,oheoinsistedouponotheoBankotoorevealotheoactualoamountothatohado beenopaid.oHowever,otheoBank,ofororeasonsobutoobvious,oneveroinformedo himo abouto theo same.o Heo argueso witho vehemenceo thato thereo waso sufficientoincriminatingoevidenceoonorecord,owhichowouldoconstituteoallo theo necessaryo ingredientso too constituteo offenceso undero Sectionso 409,o 420,o511,o120-BoIPC,oasomalafidesoonotheopartoofotheoBankowereowrito largeo fromo theo veryo beginning,o ando theo sameo wouldo haveo too beo appreciatedoinotheolightoofothereobeingoaofiduciaryorelationshipobetweeno theoBankoandotheocomplainant,oandothus,oalloconfidentialoinformationo oughtotoohaveobeenosharedobyotheoBank,osoothatotheocomplainantocouldo haveobailedooutohisoCompaniesofromotheofinancialocrisisowhichoheowaso facing.oLearnedocounselohasothus,osubmittedothatotheoBankocreatedosucho circumstancesobyoeliminatingoallootherooptions,owhichocompelledotheo complainantotooagreeotooaosettlementoinotheosumoofo`o10.00ocroresoalongo withootherorelatedochargesoandofeesoetc.oTheonon-disclosureobyotheoBanko tootheocomplainantoandodefraudingohimoinsteadotoopayo`o10.00ocroresoforo thisoinvestmentowasoclearlyoaocaseoofocheating.oo

6.k Iohaveoheardolearnedocounseloforotheopartiesoandoperusedotheo relevantomaterialoonorecord.o

7.k Ato theo outset,o ao challengeo haso beeno laido byo theo learnedo counselo foro theo complainanto quao theo maintainabilityo ofo theo presento petition.oThisoCourtodoesonotofindoanyomeritoinotheosubmissionsomadeobyo k 13k theolearnedocounseloforotheocomplainant/respondentoNo.2oinothisoregardo thato ano alternativeo remedyo ofo revisiono iso availableo againsto theo ordero directingo furthero investigation.o Theo Hon'bleo Supremeo Court,o ino 'PrabhuoChawlaovs.oStateoofoRajasthano&oanother'o2016o(4)oRCRo (Criminal)o270,owhileoupholdingotheolawolaidodownobyoitoino'Dhariwalo Tobaccoo&oothersovs.oStateoofoMaharashtrao&oanother'o2009o(2)o SCCo370ohasoheldoasounder:oo "6.o Inoouroconsideredoviewoanyoattemptotooexplaino theolawofurtheroasoregardsotheoissueorelatingotooinherento powero ofo Higho Courto undero Sectiono482oCr.P.C.o iso unwarranted.o Weo wouldo simplyo reiterateo thato Sectiono482obeginso witho ao non-obstanteo clauseo too state:o "NothingoinothisoCodeoshallobeodeemedotoolimitooroaffectotheo inherentopowersoofotheoHighoCourtotoomakeosuchoordersoaso mayo beo necessaryo too giveo effecto too anyo ordero undero thiso Code,oorotoopreventoabuseoofotheoprocessoofoanyoCourtooro otherwiseotoosecureotheoendsoofojustice."oAofortiori,othereo cano beo noo totalo bano ono theo exerciseo ofo sucho wholesomeo jurisdictionowhere,oinotheowordsoofoKrishnaoIyer,oJ.o"abuseo ofotheoprocessoofotheoCourtoorootheroextraordinaryosituationo exciteso theo court'so jurisdiction.o Theo limitationo iso self-restraint,o nothingo more."o Weo ventureo too addo ao furthero reasono ino support.oSinceo Sectiono397oCr.P.C.o iso attractedo againstoalloordersootherothanointerlocutory,oaocontraryoviewo wouldo limito theo availabilityo ofo inherento powerso undero Sectiono482oCr.P.C.o onlyo too pettyo interlocutoryo orders?o Ao situationowhollyounwarrantedoandoundesirable."o o o o Hence,o ino viewo ofo theo lawo laido downo byo theo Hon'bleo SupremeoCourt,otheoinstantopetitionoisomaintainableounderoSectiono482o k 14k Cr.P.C.oMoreover,o theoBankoisoalsooseekingoquashingoofotheoFIRoino question,oforowhichotheoonlyoremedyoavailableotooitowouldobeoundero Sectiono482oCr.P.C.oo

8.k TheofirstoprayerowhichohasobeenomadeobyotheoBankoisoforo quashingoofotheoimpugnedoorderodatedo04.07.2013ovideowhichotheotrialo Courto hado rejectedo theo cancellationo reporto submittedo byo theo investigatingo agencyo ando directedo theo reinvestigationo ofo theo matter.o Admittedly,o earlier,o theo investigatingo agency,o aftero concludingo itso investigation,ofiledoaocancellationoreportodatedo04.02.2013o(AnnexureoP-st26)obeforeotheolearnedoJudicialoMagistrateo1 oClass,oAmritsar.oHowever,o sttheolearnedoJudicialoMagistrateo1 oClassowhileorejectingotheocancellationo report,odirectedoreinvestigationovideoorderodatedo04.07.2013o(Annexureo P-27).oTheoorderodirectingoreinvestigationowasochallengedobeforeothiso Court.oThisoCourtovideoorderodatedo10.09.2015o(AnnexureoP-31)opassedo ino CRM-Mo No.2621o ofo 2014o seto asideo theo ordero datedo 04.07.2013o (AnnexureoP-27)oandoremandedotheomatterobackotootheoCourtoconcernedo directingoitotoodecideoitoafreshoonomerits.oThereafter,otheoimpugnedoordero datedo10.05.2017o(AnnexureoP-32)owasopassedobyotheolearnedoJudicialo Magistrateo 1sto Class,o Amritsar,o wherebyo yeto againo theo cancellationo reportowasorejectedoandotheoinvestigatingoagencyowasodirectedotoofurthero investigateo theo caseo "fromo allo angles".o Ao perusalo ofo theo impugnedo orderodatedo10.05.2017orevealsothatotheolearnedoJudicialoMagistrateo1sto Classo directedo furthero investigationo onlyo becauseo theo complainanto disagreedowithotheocancellationoreportosubmittedobyotheoinvestigatingo k 15k agency.oApartofromothis,onooreason,omucholessocogentowasospeltooutobyo theo learnedo Judicialo Magistrateo 1sto Class,o Amritsaro aso too whato hado persuadedohisojudicialoconscienceotoorejectotheocancellationoreport.oIno thisoregardoaoreferenceomayobeomadeotootheoobservationsomadeobyotheo Hon'bleoSupremeoCourtoino'StateothroughoCBIovs.oRajoKumaroJain'o JTo1998o(5)oSCo127,oobservedoasounder:oo o o "Asoregardsotheodirectionsoforofurtheroinvestigation,oito is,oofocourse,otrueothatotheoSpecialoJudgeohasopowerotoosoo directoifoheofinds,oonoconsiderationoofotheopoliceoreportothato theo opiniono formedo byo theo Investigatingo Officero seekingo dischargeo ofo theo respondento iso noto basedo ono fullo ando completeo investigation,o aso observedo byo thiso Courto ino AbhanandanoJhaoVs.oDineshoMisharao[AIRo1968oSCo117].o Unfortunately,ohowever,oinoissuingotheoaboveodirectionotheo SpecialoJudgeohasonotogivenoanyoreasonowhatsoeverowhicho promptedo himo too directo furthero investigationo noro doeso ito appearothatoheohasogoneothroughotheopoliceoreportoandoitso accompaniments."o o

9.k Undoubtedly,oitoisoaosettledoprincipleoofolawothatoaoJudicialo Magistrateoisonotoboundotooacceptotheocancellationoreportofiledobyotheo investigatingo agencyo ando ifo theo Courto iso noto satisfiedo witho theo investigation,o theno ito iso fullyo competento too ordero theo investigatingo agencyo too carryo outo furthero investigationo undero Sectiono 156o Cr.P.C.o However,otheoaforesaidodiscretionocanonotobeoexercisedobyotheoCourtoino aomechanicaloandoanoarbitraryomannerobutoitomustobeoaoresultoofodueo deliberationoandosoundoexerciseoofojudicialodiscretion.oItowouldobeomosto pertinentotooobserveohereothatotheoreasonsorecordedoconstituteotheosouloofo k 16k judicialodecisionsoinoaodemocraticowelfareoStateowhichoisogovernedobyo theoruleoofolaw.oAojudicialodecisionowhichoisodevoidooforeasons,owouldo reflecto arbitrarinesso ando nono applicationo ofo judicialo mind.o Whileo discardingoaocancellationoreportoandodirectingofurtheroinvestigation,oitoiso thus,otheoboundenodutyoofotheoMagistrateotoorecordosomeocogentoreasons,o whichomayonotonecessarilyobeodetailedobutoshouldoreflectoapplicationoofo judicialomind.ooo

10.k Fromoaoperusaloofotheoimpugnedoorder,oitoisoapparentothato theosaidoorderohasounfortunatelyobeenopassedobyotheolearnedotrialocourto ino theo teetho ofo theo ordero ofo thiso Courto datedo 10.09.2015,o whereino categoricodirectionsohadobeenoissuedotootheotrialoCourtotoorecordocogento reasonso foro directingo furthero investigationo whicho ito hado failedo too doo whileo passingo theo impugnedo order.o Hence,o merelyo becauseo theo complainantohadodisagreedowithotheocancellationoreport,owhichoinoanyo case,o heo wouldo have,o couldo noto haveo beeno theo soleo groundo foro discarding/rejectingo theo cancellationo reporto ando orderingo furthero investigation.oItowasoimperativeouponotheoJudicialoMagistrateo1stoClasso tooexamineotheocancellationoreport,oindependentoofotheocomplainant'so disagreemento ando thereafter,o accepto oro rejecto ito byo recordingo cogento reasonsoinosupportoofohisoorder.oTherefore,oinotheoopinionoofothisoCourt,o theo impugnedo ordero directingo foro reinvestigationo deserveso too beo seto aside.oo

11.k ComingotootheonextoprayeromadeobyotheoBankotooquashotheo FIRoinoquestion;oitoisoaosettledoprincipleoofolawothatotheopowersoundero k 17k Sectiono482oCr.P.C.oareotoobeousedonotoonlyosparinglyobutowithoaogreato dealoofocircumspectionoinoorderotoopreventotheoabuseoofotheoprocessoofo theoCourtoandotoosecureotheoendsoofojustice.oo

12.k Hon'bleotheoApexoCourt,oino'StateoofoHaryanaoandootherso v.oCh.BhajanoLaloandoothers'o1992oAIRoSCo604,ohasolaidodownotheo followingofactorsotoobeoconsideredowhileoadjudicatingouponoaoprayeroforo quashingoFIR:-o "(1)ooWhereotheoallegationsomadeoinotheoFirstoInformationoReporto orotheocomplaint,oevenoifotheyoareotakenoatotheirofaceovalueo andoacceptedoinotheiroentiretyodoonotoprimaofacieoconstituteo anyooffenceooromakeooutoaocaseoagainstotheoaccused;oo

(2)oo WhereotheoallegationsoinotheoFirstoInformationoReportoando othero materials,o ifo any,o accompanyingo theo F.I.R.o doo noto discloseoaocognizableooffence,ojustifyingoanoinvestigationobyo policeo officerso undero Sectiono 156(1)o ofo theo Codeo excepto undero ano ordero ofo ao Magistrateo withino theo purviewo ofo Sectiono155(2)oofotheoCode;oo

(3)oo WhereotheouncontrovertedoallegationsomadeoinotheoFIRooro complaintoandotheoevidenceocollectedoinosupportoofotheosameo doonotodiscloseotheocommissionoofoanyooffenceoandomakeoouto aocaseoagainstotheoaccused;oo

(4)oo Whereo theo allegationso ino theo FIRo doo noto constituteo ao cognizableo offenceo buto constituteo onlyo ao non-cognizableo offence,o noo investigationo iso permittedo byo ao policeo officero withoutoanoorderoofoaoMagistrateoasocontemplatedoundero Sectiono155(2)oofotheoCode;oo

(5)oo WhereotheoallegationsomadeoinotheoFIRoorocomplaintoareosoo absurdoandoinherentlyoimprobableoonotheobasisoofowhichonoo prudentopersonocanoeveroreachoaojustoconclusionothatothereo isosufficientogroundoforoproceedingoagainstotheoaccused;oo k 18k

(6)oo Whereothereoisoanoexpressolegalobaroengraftedoinoanyoofotheo provisionsoofotheoCodeoorotheoconcernedoActo(underowhichoao criminalo proceedingo iso instituted)o too theo institutiono ando continuanceo ofo theo proceedingso and/oro whereo thereo iso ao specifico provisiono ino theo Codeo oro theo concernedo Act,o providingo efficaciouso redresso foro theo grievanceo ofo theo aggrievedoparty;oo

(7)o Whereoaocriminaloproceedingoisomanifestlyoattendedowitho malao fideo and/oro whereo theo proceedingo iso maliciouslyo institutedowithoanoulterioromotiveoforowreakingovengeanceo onotheoaccusedoandowithoaoviewotoospiteohimodueotooprivateo andopersonalogrudge."o o

13.k AoperusaloofotheoaboveoguidelinesolaidodownobyotheoHon'bleo SupremeoCourtomakesoitoabundantlyoclearothatothisoCourt,oinoexerciseoofo itsoinherentopowersounderoSectiono482oCr.P.C.,ocanoquashoanoFIRowhicho doesonotoprimaofacieodiscloseotheocommissionoofoaocognizableooffenceo orotheoFIR,oonotheofaceoofoit,ocomesoacrossoasobeingofrivolous,ovexatiouso andooppressive.oo

14.k Advertingo too theo caseo ino hand,o aso pero allegationso theo complainantoapproachedotheoBankotooavailoitsoadvisoryoservicesoasoheo wasolookingoforwardotooenteringointooanoOTSowithotheocreditoroBanksoofo hisoCompany,oandoitowasoafterodueodiscussionsoandodeliberations,otheo complainanto signedo theo indicativeo termo sheeto ino February,o 2007.o Subsequently,otheoengagementoletterodatedo17.04.2007o(AnnexureoP-1)o wasoalsooissuedobyotheoBankotootheocomplainant.oTheoBankostatedothatoito wouldoendeavourotooraiseofundsoforoPhase-Iowithinoaoreasonableotime.o Thereafter,oanoofficialoofotheoBankosentoanoemailotootheocomplainanto k 19k intimatingothatolimitingotheoexposureoofoinvestorsotooPhase-Iowouldobeo inotheirointerestoinoviewoofotheolowovalueooforeal-estateoinoPunjab.oIno August,o2006otheocomplainantowasothenoableotoofinalizeotheoOTSowitho CBOPo ando ono theo assuranceo ofo theo Banko too raiseo funds,o heo startedo puttingopaymentsoofoabouto`o7.00ocroresowithoCBOP.oHowever,oasotheo Bankofailedotooarrangeofunds,oultimately,otheoCBOPocancelledotheoOTSo ono04.09.2007oforotheoreasonothatotheocomplainantohadobeenounableotoo payo theo amounto agreedo upono betweeno theo parties.o Thereafter,o theo complainantoreceivedoanoemailodatedo18.09.2007ofromoanoofficialoofotheo CAGo ofo theo Banko wherebyo heo waso informedo thato theo ARDo couldo initiallyobuyotheodebtoofotheocomplainantofromoCBOP.oTheoCBOP,ovideo itsoletterodatedo28.09.2007oinformedotheocomplainantoofohavingoassignedo theototalodebtotootheoBankovideodeedoofoassignmentodatedo27.09.2007o (AnnexureoP-2).oThereafter,otheocomplainantothankedotheoBankoandoinoao meetingo heldo ono 03.10.2007o witho theo latter,o theo formero expressedo willingnessotoorepayotheoamountoinvestedobyoitoinoPhase-Ioandoinofact,o paidotooCBOP,oinoaotimeoboundomanner.oSubsequently,otheocomplainanto wasodulyoinformedoduringoaomeetingothatotheoBankoincurredo`o10.00o croreso ino purchasingo theo debto fromo CBOP.o Aftero discussingo ando finalizingotheoformalities,otheoBankomadeoanoofferotoorepayotheoamounto ofo`o10.00ocroresoalongowithointeresto@o16%op.a.owithino12omonths.o ComplainantoalsoorequestedotheoBankoforoapproval/sanctionoletterobutoheo wasonotoconveyedotheosame.oThereafter,otheocomplainantopurportedlyo learnedo fromo someo "independento ando reliableo sources",o thato theo k 20k buyoutoofoloanofromoCBOPobyotheoBankowasoforoanoamountolessothano `10.00ocroresoandothus,otheoBankohadomisrepresentedoandocheatedotheo complainantoquaotheosame.oOno19.10.2007,otheocomplainantowithdrewo theoearlierooffersomadeotoorepayoandodeclaredoallothoseooffersoasonulloando void.oTheocomplainant,ovideoletterodatedo18.03.2008o(AnnexureoP-9),o requestedotheoBankoofficialsotoosupplyohimotheorelevantodocumentsoquao theoclaimoofotheoamountoinvestedoandopaidobyothemotooCBOPoonohiso behalf.oHowever,onooreplyowasosent.oTheocomplainantothenosentoaolegalo noticeodatedo09.04.2008otootheoBankoseekingodocumentaryoevidenceoofo theoamountoinvestedoandopaidoforobuyoutoofotheodebt.oItowasoallegedothato theo intentiono ofo theo Banko waso too cheato ando deriveo undueo gainso byo causingo losseso too theo complainanto fromo dayo oneo byo winningo itso confidenceosooasotoomakeotheoOTSofailobyoextendingofalseopromisesoofo arrangingofinances,osooasotoocreateoaosituationotoofurtherotheirocauseoando preventotheocomplainantofromoexploringootherooptionsoandobyoharassingo theocomplainantotoosuchoanoextentobyoraisingoexcessiveodemands,oasoao resultoofowhichoheosuccumbedotootheopressureotacticsoofotheoBank.oItowaso alsoostatedothatotheoBankoofficialsohadocommittedoaofraudobyoviolatingo theoagreementodatedo17.04.2018.oTheocomplainantoalsoofiledoaocivilosuito ono03.05.2008oagainstotheoBankobeforeotheoCiviloCourtoatoAmritsar.oo

15.k InotheoFIRoinoquestion,oitohasobeenoallegedothatotheoBankohaso committedo theo offenceo attractingo theo mischiefo ofo Sectiono 420o IPC,o whichoforofacilityooforeferenceoisoreproducedobelow:oo k 21k o o "420.oCheatingoandodishonestlyoinducingodeliveryoofo propertyoWhoeverocheatsoandotherebyodishonestlyoinduceso theopersonodeceivedotoodeliveroanyopropertyotooanyoperson,o orotoomake,oalteroorodestroyotheowholeooroanyopartoofoao valuableosecurity,ooroanythingowhichoisosignedoorosealed,o andowhichoisocapableoofobeingoconvertedointooaovaluableo security,o shallo beo punishedo witho imprisonmento ofo eithero descriptionoforoaotermowhichomayoextendotoosevenoyears,o andoshalloalsoobeoliableotoofine."o o

16.k Aoperusaloofotheoaboveoreproducedoprovisionorevealsothato theo necessaryo ingredientso too attracto theo mischiefo ofo offenceo undero Sectiono420oIPCoareothato(i)othereomustobeosomeodeceptionopracticedo uponotheocomplainantobyotheoaccused,o(ii)otheopersonosoocheatedomusto haveobeenodishonestlyoinducedotoodeliverosomeoproperty,oando(iii)omake,o alteroorodestroyovaluableosecurityooroanythingosignedoorosealed,ocapableo ofo beingo convertedo intoo ao valuableo security.o Theseo ingredientso areo indispensableotooattractingotheomischiefoofoSectiono420oIPC.oWhatolieso atotheoheartoofoSectiono420oIPCoisomensorea,owhichomustobeopresentorighto atotheoinceptionoofotheotransactionopursuantotoowhichoaopersonohasobeeno defrauded.o Ino thiso regard,o ito wouldo beo appositeo too refero too theo observationsomadeobyotheoHon'bleoSupremeoCourtoino'Internationalo Advancedo Researcho Centreo foro Powdero Metallurgyo ando Newo Materialso(ARCI)oandoothersoVs.oNimraoCerglassoTechnicso(P)oLtd.o andoothers'o(2016)o1oSCCo348:oo o o "Theomakingoofoaofalseorepresentationoisooneoofotheo essentialoingredientsotooconstituteotheooffenceoofocheatingo k 22k underoSectiono420oIPC.oInoorderotoobringoaocaseoforotheo offenceoofocheating,oitoisonotomerelyosufficientotooproveothato ao falseo representationo hado beeno made,o but,o ito iso furthero necessaryotooproveothatotheorepresentationowasofalseotootheo knowledgeoofotheoaccusedoandowasomadeoinoorderotoodeceiveo theocomplainant."o o

17.k Primaofacie,oonoaobareoreadingoofotheoFIRoinoquestion,oitoiso evidentothatotheoaforesaidoingredientsotooattractotheomischiefoofooffenceo underoSectiono420oIPC,oareoclearlyomissingoinotheocaseoinohand.oThereoiso notoevenoaosingleoallegation,omucholessobyowayoofoaowhisperoaboutothereo havingobeenoanyodeliveryoofopropertyobyotheocomplainantotootheoBankooro anyo alterationso oro destructiono ofo anyo valuableo securityo oro anythingo signedoorocapableoofobeingoconvertedointooaovaluableosecurityohavingo beenomade/doneobyotheoBank,owhichofactohasoalsoonotobeenodisputedobyo theolearnedocounseloforotheocomplainant.oo

18.k Ito iso ao mattero ofo recordo thato theo complainanto himselfo approachedo CAGo foro advisoryo serviceso ando signedo ano engagemento letter.o Theo CBOP,o video itso lettero datedo 28.09.2007o informedo theo complainantoofohavingoassignedotheototalodebtotootheoBankovideodeedoofo assignmento datedo 27.09.2007o (Annexureo P-2).o Ino ano emailo datedo

01.10.2007o(AnnexureoP-3),otheocomplainantonotoonlyowelcomedotheo acquisitionoofoitsodebtsobyoARDobutoalsoothankedoitoassuringotoopayotheo amountorequiredoforoOTS.oAttentionohasoalsoobeenodrawnotooAnnexureo P-5owherein,oitohasobeenoreflectedothatoitowasotheocomplainantohimselfo whoohadoofferedotoopayo`o10.00ocroresotootheoARDoofotheoBank.oIto k 23k becomesoapparentofromoAnnexureoP-6otooP-8,othatotheocomplainantohado timeoandoagainoshownohisowillingnessotoosettleoitsodebtowithoARDoato `10.00ocrores.oItowasotheocomplainantohimself,owhoowithoutoenquiringo aboutotheoactualocostoincurredobyotheoBankoinoacquisitionoofohisodebt,o hadowillinglyomadeotheoofferotoopayo`o10.00ocroresoasoOTS.oTherefore,o whenotheosequenceoofoeventsoisoseenoinoitsoentirety,oprimaofacieotheo offenceounderoSectiono420oIPCoisonotomadeoout.o

19.k Ito wouldo alsoo beo relevanto too discusso theo conducto ofo theo complainantopreoandopostoregistrationoofotheoFIR,owhichoclearlyohintso towardsoaodesperateoattemptobyoaoborrowerotoopreventohisocreditorofromo recoveringotheodebtobyoinitiatingocriminaloproceedingsotooprosecuteotheo officialsoofotheoBankosooaso"toobringotheofinancialoinstitutionoonoitso knees".oInotheoaforementionedoregard,oitowouldobeoappositeotoopointoouto theo certaino admittedo facts,o whicho ino turno wouldo throwo lighto ono theo conductoofotheocomplainantotooshowothatotheoprosecutionohadoindeedo beenoinstitutedowithoaomalafideointentoandoanoulterioromotiveosooasotoo pressurizeotheoBankotoosettleotheodebtoforo'favourableoamount'.oo o o Inotheocivilosuitoinstitutedobyotheocomplainantoagainstotheo Bank,oheohadonowhereoaverredomucholessobyowayoofoaowhisperoinohiso plainto(AnnexureoP-12)othatotheoofficialsoofotheoBankohadocheatedooro playedoaofraudouponohim.ooo

20.k Itoneedsotoobeoobservedothatoafterotheocivilosuitohadobeeno filedo byo theo complainant,o theo Banko servedo ao noticeo ono 07.05.2008o askingotheocomplainantotoopayoaosumoofo` 39,73,40,000/-oasoOTS.oItowaso k 24k onlyo subsequento too theo receipto ofo thiso hugeo demando byo wayo ofo theo aforesaidonotice,otheocomplainantofiledoaocomplaintoallegingocheatingo againstotheoBankoono30.06.2008obeforeotheoSenioroSuperintendentoofo Police,oAmritsar.oTheotimingoofofilingotheocomplaintobyotheocomplainanto i.e.oafteroreceiptoofonoticeodatedo07.05.2008,othus,oraisesoeyebrowsoando seriousodoubts.oo

21.k Theocomplainantosentoaoletterodatedo09.05.2015,oi.e.oaftero initiationoofocriminaloproceedings,owithoanoofferotoopayo`4.35ocroresoaso oneo timeo fullo ando finalo settlemento towardso theo claimso ofo theo Bank.o Whileomakingotheooffer,oitowasostatedothatoonoapprovaloofoOTSobyotheo Bank,oandoonopaymentobeingomadeobyotheoapplicantoBank,oheowouldo withdrawo allo theo proceedingso initiatedo againsto theo Bank.o Theo complainantoalsooaskedotheoBankonototooproceedowithotheoOAobeforeotheo DRTo Chandigarh,o ono acceptanceo ofo theo OTSo proposal,o ando alsoo too withdrawoallootheroproceedings.oItobecomesoclearothatotheocomplainanto hadoalwaysobeenowillingotoosettleoitsodebtsowithoARDobutojustoonoitsoowno termso ando hado noo objectiono too itso debtso beingo acquiredo byo ARD,o therefore,o ito cannoto beo saido thato ao fraudo hado beeno playedo upono theo complainantobyotheoBankoinoanyomanner.oTheoavermentsomadeoinotheo FIRoalongowithotheofactothatotheocomplainantohadoofferedotoowithdrawo theocriminaloproceedings,ohadohisoofferoofo`o4.35ocroresoasoOTSobeeno acceptedobyotheoBank,ohintsotowardsotheomalafidesoonotheopartoofotheo k 25k

22.k Theo Hon'bleo Supremeo Courto ino 'Vesao Holdingso ando anotherovs.oStateoofoKeralaoandoothers'o2015o(2)oRCRo(Criminal)o 442,ohasoheldothatocriminaloproceedingsoshouldonotobeoencouragedowheno itoisofoundotoobeomalafideoandoanoabuseoofotheoprocessoofotheoCourt.ooo

23.k Theo Hon'bleo Supremeo Courto ino 'Indiano Oilo vs.o NEPCo IndiaoLtd.'o2006o(3)oRCRo(Criminal)o740ohasoobservedothatoanyoefforto too settleo ao civilo disputeo ando claimso byo exertingo pressureo througho criminaloprosecutionoshouldobeodiscouragedoandodeprecated.oSimilarly,o Hon'bleotheoSupremeoCourt,oino'KapiloAggarwalovs.oSanjayoSharmao &oothers'o2021o(2)oRCRo(Criminal)o238,ohasoheldothatoSectiono482o Cr.P.C.owasoenactedotooensureothatocriminaloproceedingsodoonotogenerateo intooweaponsoofoharassment.oo

24.k Therefore,o wheno circumstanceso areo consideredo ino theiro entirety,oitoappearsothatoaodisputeowhichoisoessentiallyoofocivilonature,ohaso beeno malafidelyo giveno theo colouro ofo criminality.o Ino thiso regard,o ao referenceomayobeomadeotootheodecisionoofotheoHon'bleoSupremeoCourto ino 'Paramjeeto Batrao vs.o Stateo ofo Uttrakhando &o others'o 2014o (6)o RCRo(Criminal)o187,owhereinoitohasobeenoheldoasounder:o k k "7.o Whileo exercisingo itso jurisdictiono undero Sectiono 482oofotheoCodeotheoHighoCourtohasotoobeocautious.oThiso poweroisotoobeousedosparinglyoandoonlyoforotheopurposeoofo preventingoabuseoofotheoprocessoofoanyocourtoorootherwiseo toosecureoendsoofojustice.oWhetheroaocomplaintodisclosesoao criminalooffenceooronotodependsouponotheonatureoofofactso allegedotherein.oWhetheroessentialoingredientsoofocriminalo offenceoareopresentooronotohasotoobeojudgedobyotheoHigho k 26k Court.oAocomplaintodisclosingocivilotransactionsomayoalsoo haveo ao criminalo texture.o Buto theo Higho Courto musto seeo whetheroaodisputeowhichoisoessentiallyoofoaocivilonatureoiso givenoaocloakoofocriminalooffence.oInosuchoaosituation,oifoao civiloremedyoisoavailableoandois,oinofact,oadoptedoasohaso happenedoinothisocase,otheoHighoCourtoshouldonotohesitateo tooquashocriminaloproceedingsotoopreventoabuseoofoprocesso ofocourt."o o o

25.k oTheocomplainantohadovoluntarilyoenteredointooanoagreemento withotheoCAGotooavailoitsoadvisoryoservicesoandoinocaseotheocomplainanto feltoandowasodissatisfiedoonoaccountoofodeficiencyoinoservicesoofoCAG,o thereowasonothingowhichopreventedohimofromotakingorecourseotooothero remedieso availableo undero theo civilo law.o However,o theo complainanto furthero willinglyo approachedo theo ARDo insteado ofo exploringo othero options.oSimilarly,oifotheocomplainantowasoaggrievedobyotheoconflictoofo interestobetweenotheotwoodivisionsoofotheoBank,oevenothenotheoremedyo doesonotolieoinocriminalolaw.oo

26.k Ino theo presento case,o theo complainanto hado alsoo availedo ofo variousociviloremediesoavailableotoohimobyoinstitutingoaocivilosuitobeforeo aoCiviloCourtoatoAmritsar,oproceedingsobeforeotheoDRToMumbai,oandoao CiviloWritoPetitionobeforeothisoCourt.oHence,oinoviewoofotheolawolaido downobyoHon'bleotheoApexoCourtoinoParamjeetoBatra'socaseo(supra),o criminaloproceedingsocannotobeopermittedotoocontinue.oo

27.k Ao defaultingo borrowero cannoto beo permittedo too abuseo theo processoofolawosooasotooevadeomakingopaymentotoohisocreditor.oIfoao borroweroisoallowedotootakeorecourseotoocriminalolawoinosuchoaomanner,o k 27k itowouldohaveotheoinherentopotentialotooadverselyoaffectotheomarrowsoofo theoeconomicohealthoofotheonationoasowasoalsooobservedoinotheofollowingo termsobyotheoHon'bleoApexoCourtoino'PriyankaoSrivastavaovs.oStateoofo UP'o2015o(2)oRCRo(Criminal)o1034:o o o "1.o Theo presento appealo projectso ando frescoeso ao scenarioo whicho iso noto onlyo disturbingo buto alsoo haso theo potentialityotoocreateoaostirocompellingooneotooponderoinoao perturbedostateohowosomeounscrupulous,ounprincipledoando deviantolitigantsocanoingeniouslyoandoinnovativelyodesignoino aononchalantomannerotooknockoatotheodoorsoofotheoCourt,oaso if,oitoisoaolaboratoryowhereomultifariousoexperimentsocano takeoplaceoandosuchoskillfulopersonsocanoadroitlyoabuseotheo processo ofo theo Courto ato theiro owno willo ando desireo byo paintingoaocanvasoofoagonyobyoassiduousoassertionsomadeoino theoapplicationothoughotheorealointentionoisotooharassotheo statutoryoauthorities,owithoutoanyoremoteoremorse,owithotheo inventiveodesignoprimarilyotoocreateoaomentalopressureoono theosaidoofficialsoasoindividuals,oforotheyowouldonotolikeotoo beodraggedotooaocourtoofolawotoofaceoinocriminalocases,oando furthero pressurizeo ino sucho ao fashiono soo thato financialo institutiono whicho theyo represento wouldo ultimatelyo beo constrainedotooacceptotheorequestoforo"one-otimeosettlement"o withotheofondohopeothatotheoobstinateodefaultersowhoohado borrowedo moneyo fromo ito wouldo withdrawo theo caseso institutedo againsto them.o Theo facts,o aso weo proceedo too adumbrate,o wouldo graphicallyo revealo howo sucho persons,o pretentiouslyo aggrievedo buto potentiallyo dangerous,o adopto theoself-oconvincingomasteryomethodsotooachieveoso.oThatoiso theosadoandounfortunateofactualoscoreoformingotheofulcrumo ofotheocaseoatohand,oand,oweopainfullyorecount."o o k 28k

28.k Inoviewoofotheocircumstances,oasoenumeratedohereinabove,o coupledowithotheoprinciplesoofolawolaidodownobyotheoHon'bleoSupremeo Court,otheopetitionostandsoallowedoandotheoFIRo(AnnexureoP-23)oalongo witho allo consequentialo proceedingso arisingo therefromo includingo theo ordero(AnnexureoP-32)oareoherebyoquashed.o o o (MANJARIooNEHRUooKAUL)o JUDGEo Julyo12,o2023o rpsoooooo Whetherospeaking/reasonedoo o Yes/Noo Whetheroreportableo o o Yes/Noo