Arpan Kamalkishor Goyal And Anr vs. The State Of Maharashtra And Anr

Facts

The applicants, Arpan Kamalkishor Goyal and another, sought to quash an FIR registered at Chandanjira police station, Jalna, and subsequently the criminal proceedings (R.C.C.No. 560 of 2019) pending before the learned 2nd Joint J.M.F.C. Jalna. The FIR alleged offences under sections 406, 420, 468, 471 read with 34 of the Indian Penal Code. The informant claimed the applicants' company supplied material worth Rs. 1,73,090/- and subsequently avoided payment. The applicants contended that the transaction was civil in nature, supported by account records showing furniture supply for Rs. 1,72,870/-. The prosecution pointed to a supplementary statement indicating the applicants had also allegedly defrauded another company by not paying for mill scale, leading to a separate FIR. The investigation noted the applicants' alleged non-cooperation regarding grill supply and discrepancies in GST invoice numbers, suggesting fabricated bills.

Held

The Court held that the application for quashing the FIR and criminal proceedings was not maintainable. Regarding the first issue, the Court acknowledged the applicants' contention that the dispute had a civil colour, citing the account records showing furniture supply. However, the Court noted that the investigation also revealed allegations of fabricating documents, specifically concerning GST invoice numbers, which the Court stated could not be considered solely within civil proceedings. Regarding the second issue, the Court found that the fabrication of documents and how such documents would be proven were matters for trial. The Court also noted that the charges had been framed and the evidence was part-heard. Therefore, considering the disputed facts and the stage of the proceedings, the Court declined to exercise its powers under Section 482 of the Code of Criminal Procedure. The application was rejected.

Key Issues

1. Whether the FIR and subsequent criminal proceedings for offences under Sections 406, 420, 468, 471 read with 34 of the Indian Penal Code are liable to be quashed on the ground that the dispute is essentially civil in nature, as argued by the applicants. 2. Whether the allegations of fabrication of documents, as suggested by the revenue's investigation into GST invoice discrepancies, warrant continuation of criminal proceedings, as argued by the State. Arguments for the Applicants: The applicants argued that the transaction was a civil dispute concerning the supply of goods, supported by their account records. They contended that the informant had encashed the GST amount and that the allegations did not meet the ingredients of the alleged offences. They relied on the fact that their accounts showed a furniture supply transaction for Rs. 1,72,870/-, suggesting a civil colour to the matter. Arguments for the Revenue/State: The State argued that while the dispute might have a civil colour, the fabrication of documents, as indicated by the GST invoice discrepancies and the supplementary statement about defrauding another company, could not be ignored and warranted a trial. They highlighted that the investigation into the supply of grill indicated no such supply occurred, and the issue of fabricated bills needed to be proven at trial.