Ayush Agrawal vs. State Of Chhattisgarh

Facts

The petitioners, partners of M/s Jai Bhole Ispat, sought to quash an FIR registered on 26.02.2026 at Police Station Basna, District Mahasamund. The FIR was based on information that two trucks carrying sponge iron were found in suspicious circumstances. The drivers produced invoices from M/s Jai Bhole Ispat to M/s Shri Bajrang Bali Enterprises, but allegedly failed to produce weighment slips and proper e-way bill details. The drivers' statements implicated Ranjit Singh and M/s Jai Bhole Ispat in preparing forged invoices for the sale of allegedly stolen and illegally transported sponge iron. The petitioners, as partners of M/s Jai Bhole Ispat, were implicated on the allegation of preparing forged invoices. The total value of the sponge iron in dispute was approximately Rs. 50,61,250/-.

Held

The Court held that no case was made out for interference at this stage. It reasoned that there were allegations of the petitioners' involvement in the illegal transportation of sponge iron, and although the FIR was initially registered against the drivers, their disclosures implicated the petitioners. The Court found that contentions regarding false implication and factual disputes required appreciation of evidence, which could not be adjudicated in a proceeding seeking to quash an FIR. The Court also noted that the petitioners had already been granted regular/anticipatory bail and the investigation was ongoing. Citing the Supreme Court's decisions in Neharika Infrastructure Pvt. Ltd. and Pradeep Kumar Kesharwani, the Court emphasized that the power to quash criminal proceedings should be exercised sparingly and with circumspection, only when the allegations in the FIR, taken at face value, do not disclose a cognizable offense. The Court concluded that it was premature to pronounce on the merits of the allegations, as the police must be permitted to complete the investigation. The issues raised by the petitioners were deemed matters to be considered during the trial.

Key Issues

1. Whether the allegations in the FIR, when taken at face value, disclose the commission of a cognizable offence under the Bharatiya Nyaya Sanhita, 2023, warranting the quashing of the FIR and subsequent proceedings against the petitioners? Petitioner's Arguments: The petitioners contended that M/s Jai Bhole Ispat is a legitimate business entity that files regular tax returns. They asserted that the transaction was genuine, supported by valid invoices, e-way bills, stock records, and banking transactions, including an advance payment of Rs. 15,00,000/-. They argued that there was no admissible material connecting them to the alleged offense, and they were implicated based on vague allegations and co-accused statements. They also claimed they were not named in the FIR and had no connection to the trucks or drivers. They argued that the continuation of criminal proceedings would be an abuse of process. State's Arguments: The State argued that sufficient material existed on record to prima facie constitute an offense. They submitted that the sponge iron was being illegally transported in connivance with the petitioners, and the matter was still under investigation. They also noted that the petitioners had already been granted regular/anticipatory bail, and therefore, the petitions should be dismissed.