HONOURABLE SRI JUSTICE R.KANTHA RAO CRIMINAL PETITION No.3680 OF 2009 Dated 19-11-2010 Between: Muralidharan Subramanian and others. …Petitioners. And: Indus Palms Hotels and Resorts Limited, a company incorporated under the Companies Act, 1961, having its Registered Office at 2-55/H/H, Hill Ridge Springs, Gachibowli, Hyderabad represented by its Authorized Signatory Syed Abdul Rawoof, son of late Syed Ismail, aged about 49 years, Occupation: Vice President Operations resident of 2-55/H/H, Hill Ridge Springs, Gachibowli, Hyderabad and others. …Respondents. HONOURABLE SRI JUSTICE R.KANTHA RAO CRIMINAL PETITION No.3680 OF 2009 ORDER: This Criminal Petition is filed under Section 482 Cr.P.C. seeking to quash the orders passed on 26-3-2009 in C.C. SR. No.3016 of 2009 by the learned 9th Metropolitan Magistrate, Cyberabad, Ranga Reddy District. I have heard the learned counsel appearing for the petitioner-accused and the learned Additional Public Prosecutor representing the 1st respondent. The brief facts required for considering the present criminal petition are that the IVR Prime Urban Developers Limited, constructed residential Villas in a part of Ac.50.00 of land as a gated community (residential area). The registered sale deeds executed by IVR Prime Urban Developers Limited and SAAP in favour of the Villa purchasers provide that the maintenance of the common areas and facilities shall be done by a company formed by the IVR Prima Urban Developers Limited and the Villa owners shall pay the maintenance charges to the said company. All the villa purchasers were notified the maintenance charges at the time of handing over of possession of the Villas which worked out at Rs.1.85 per sq. feet for Villa and payable every month. The IVR Prime Urban Developers Limited entrusted the maintenance operation to the Complainant company, i.e. Indus Palms Hotels and Resorts Limited, who have been maintaining the open areas and common facilities from the beginning. Subsequently, it is stated that the petitioners committed default in payment of maintenance charges to the complainant company and in spite of repeated demands, they did not pay the maintenance charges to the complainant company having availed the services from the complainant company. Petitioners and some others formed themselves into a society in the name and stile of ‘Hill Ridge Villas Owners Association’ and got it registered under the A.P. Societies Registration Act, 2001 and they have been coercing the Villa owners to pay the maintenance charges to the society instead of payment to the complainant company and thereby caused huge loss to the complainant company and deceived the complainant company. Under these circumstances, the complainant company filed a complaint in C.C.S.R.No.3016 of 2009 before the 9th Metropolitan Magistrate, Cyberabad and the learned Magistrate forwarded the same to the Station House Officer, Chandanagar under Section 156 (3) Cr.P.C. for investigation. The offences alleged in the complaint are 403, 406, 420 read with 120 I.P.C. Having heard the submissions made by learned counsel on either side, I am of the view that the entire allegations made in the complaint petition do not disclose any criminal offence. The conduct of the petitioners may at best give rise to civil liability. But under no circumstances, the allegations can constitute criminal offence. Learned counsel appearing for the petitioners relied upto a decision reported in V.Y.JOSE AND ANOTHR v. STATE OF GUJRAT AND ANOTHER ([1]) wherein the Supreme Court held that a matter which essentially involves dispute of civil nature should not be allowed to become subject-matter of criminal proceedings which may be resorted to as a short cut to execution of a non-existent decree. In the instant case also, if really the petitioners violated any clauses of the agreement, and thereby committed breach of contract, the complainant can file a civil suit but it cannot file criminal case seeking prosecution of the petitioners which is nothing but miscarriage of justice and abuse of process of law. Hence, the orders passed on 26-3-2009 in C.C. SR. No.3016 of 2009 by the learned Metropolitan Magistrate, Cyberabad, Ranga Reddy District are quashed. Accordingly, this Criminal petition is allowed. _________________________ Justice R.KANTHA RAO Dated 19-11-2010 Dvs HONOURABLE SRI JUSTICE R.KANTHA RAO CRIMINAL PETITION No.3680 OF 2009 Dated 19-11-2010 [1] (2009) 3 SCC 78