Administration of Justice – Abuse of process of law – Forum shopping – Financial transactions between parties based in New Delhi – On the basis of complaint filed by respondentcomplainant, FIR was registered in Gautam Budh Nagar against three companies, appellants-promoters of the companies and other accused persons – Summons issued by Chief Judicial Magistrate, Gautam Budh Nagar – Appellants sought quashing of the FIR and the summoning order, petitions dismissed by High Court – Correctness:
Held: The registration of FIR at Noida despite companies in question having registered offices at Delhi shows a wishful forum shopping by the Complainant – Though the complainant had invested crores of rupees in equity of the companies based at Delhi, knowing well their place of business, yet their incomplete addresses showing them at Gautam Budh Nagar, was deliberately mentioned to falsely create jurisdiction in Gautam Budh Nagar which did not actually lie there – Also, though address of the respondent was mentioned to be of Noida, his residential address was not given – Order of CJM shows no application of mind, as no reasons were assigned – Magistrate did not take into consideration the address of the complainant and the accused companies as also the addresses of their Directors – Further, claim of the respondent that the appellants had induced the complainant to advance loan and later on converted the loan into equity is false – It was a plain and simple transaction between the corporates – Even as per the complainant’s case, the short-term loan was advanced in the year 2010 for a period of one year – However, when the same was not returned, no steps were taken by the complainant to recover the same until the FIR in question was registered on 29.07.2018 i.e.
8 years & 7 months later – Furthermore, on facts, the complainant concealed material facts which were within his knowledge at the time of filing of complaint as regards the merger of the companies – Entire factual matrix and the time lines clearly reflects that the complainant deliberately and unnecessarily caused substantial delay and was waiting for opportune moment for initiating false and frivolous litigation – Impugned order set aside – FIR and all subsequent proceedings qua the appellants, quashed – Costs of ₹25 lakhs imposed on the respondent. [Paras 38, 23, 25-28, 32, 34, 37 and 39]
Administration of Justice – Abuse of process of law – Misuse of criminal proceedings – Civil matter turned into criminal case – Practice deprecated – Unscrupulous litigants should not be allowed to go scot-free and be put to strict terms and conditions including costs – Litigation laced with concealment, falsehood, and forum hunting – State actions or conduct of government servants being party to such malicious litigation should be seriously reprimanded. [Paras 2, 38]
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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