Alok Prasad Jain and Another vs IV Addl. Munsif Magistrate and Another

P.N. Bakshi, J. 1. Jaipur Udyog Ltd. is the manufacturer of the cement. Its factory situate in Sawai Madhopur, Rajasthan. Bharat Overseas Pvt. Limited was their sole selling agent. Respondent No. 2 was appointed stockiest by Bharat Overseas Ltd. A sum of Rs. 25000/- was advanced to Bharat Overseas Limited by the stockiest. Supply of cement was not made. On 18th September, 1975, Government issued a notification abolishing sole selling agency system. The instant complaint has been filed against the accused for offences Under Sections 407, 409, 419 and 420 IPC. The accused has been summoned. Aggrieved thereby this application has been filed u/s 482 Code of Criminal Procedure.

I have heard learned Counsel for the parties and have also perused the impugned orders, and the materials on the record. Counsel for the applicants argued that even if the offence u/s 420 IPC was not made out, the ingredients of the offence u/s 406 IPC were obvious in the complaint. In the instant case the position appears to be that sole selling agency was terminated by an Act of the Government. If at all, the instant case would amount to a breach of Civil contract for which remedy would lie adequately in the civil court. This is one of those cases in which the provisions of the Indian Penal Code should not be allowed to be invoked for the purposes of recovering dues. It is true that no civil suit has yet been filed, but a legal notice has already been given to the applicants. In my opinion, this is a fit case in which this Court should interfere to quash the criminal proceedings, since the proper forum for the vindication of the rights of the complainant would be a civil court.

This application u/s 482 Code of Criminal Procedure is hereby allowed and the proceedings in case 78 of 1979 Ved Prakash v. Alok Prasad Jain, pending in the court of IV Addl. Munsif Magistrate, Manipuri are hereby quashed.