THE HON’BLE SRI JUSTICE N.R.L. NAGESWARA RAO CRIMINAL PETITION No. 5714 of 2011 ORDER: The present Criminal Petition is filed by the petitioner under Section 482 of the Code of Criminal Procedure (for short “Cr.P.C.”) to quash the proceedings in F.I.R. No.208 of 2011 on the file of the Suryaraopet Police Station of Vijayawada City. The petitioner herein is said to be a contractor, who has participated in the bid of Madduru Sand Reach, when the auction was held on 14.06.2011 for a sum of Rs.9,00,00,000/- (Rupees nine crores only). He has deposited 1/4th of the bid amount. But, somehow, he did not pay the balance amount and, therefore, the Assistant Director of Mines and Geology, Vijayawada has lodged a complaint, which was registered as a case in F.I.R. No.208 of 2011 for the offences under Sections 406 and 420 of the Indian Penal Code, 1860 (for short “IPC”). Evidently, the terms of the auction are covered by the conditions of auction and in case of default as per the conditions under clause-9, the Department has got right to forfeit the amount. Either under G.O.Ms.No.84 dated 10.04.2007 or under the conditions of auction, there is no criminal liability attached to the failure of the petitioner to deposit the balance amount. If once default is committed, naturally the amount, which was already deposited, can be forfeited to the State. Therefore, in view of the above circumstances, it is a case of pure contractual obligations and not a case involving any criminal liability, more so any offence either under Section 420 or 406 of IPC. Therefore, in view of the above circumstances, the proceedings are quashed since there is nothing on record to show that by any term the accused could be prosecuted in a criminal Court for breach of the terms of the contract. The right to take legal action is quite different from the right to proceed with criminally. Accordingly, the proceedings against the petitioner are quashed and the Criminal Petition is allowed. ________________________ N.R.L. NAGESWARA RAO, J Date: 20-07-2011 MR THE HON’BLE SRI JUSTICE N.R.L. NAGESWARA RAO CRIMINAL PETITION No. 5714 of 2011 DATE: 20-07-2011 MR