Case: Sanghi Brothers (Indore) Pvt.Ltd Vs. Sanjay Choudhary &amp; Ors

The appellant-company is a registered company dealing with the sale of auto vehicles at Indore and respondents are Directors of the Chetak Construction Ltd. a registered company having its Head Office at Chetack Chamber, R.N.T. Mark, Indore and accused No.3 is the Secretary of that company. In the year 1988-89 accused approached the complainant company for obtaining lease of Tata dumpers and light commercial vehicles for a specific period on monthly lease rent basis. Respondents assured complainant company that as per the agreement they will pay monthly lease rent without any default and to support their claim, they will also furnish back guarantee for due performance of the condition of the contract. In view of that proposal, agreements were executed between the parties on 13.5.1988, 14.11.1988 and 25.3.1989 for delivery of 25 dumpers, 10 dumpers, 20 dumpers and 4 light commercial vehicles and accused persons took the delivery of the aforesaid vehicles from the complainant and also agreed for payment of the monthly lease rent for 36 months. For the due performance of agreement, necessary documents were executed by the accused persons in favour of the complainant. After some time, complainant came to know that accused No.4 was unable to pay him lease rent according to the agreement. Then complainant called accused No.1 and 2 to execute personal guarantee bonds in favour of the complainant and after some persuasion, so called personal guarantee bonds were executed by the accused Nos. 1 and 2 in favour of the complainant for due performance of the agreement on 6.12.1991. They also gave collateral security in favour of the complainant of a property belonging to M/s Choudhary Builders Private Ltd. and also produced board resolution dated 6.2.1990 to the complainant. Complainant was unable to get any rent in time from the accused persons and also found that applicants/accused in violation of the condition of the agreement have illegally sold eight vehicles to other parties with ulterior motive, thus committing criminal breach of trust also and had cheated the complainant. On these allegations, complainant through its Manager filed a complaint under Sections 420 and 406 IPC against the respondents. Before the trial Court, learned trial Magistrate after taking the cognizance against the accused recorded before charge evidence and on consideration of before charge evidence by order dated 14.8.2006 ordered for framing of the charge as noted above.The order framing of charge was questioned before the High Court in the revision petition. After noticing the stands of the petitioners before it and the respondent who is the present appellant, the High Court noted asthese cases are distinguishable with the facts of the present case. In the present case, applicants are not praying quashment of the proceedings under the provisions of Section 482 of the Criminal Procedure Code. The applicants/accused came up before this Honble Court against the order of framing of the charge and on the basis of the prima facie evidence recorded before charge and is trying to assail the findings of the trial Court and submits that no charge under Section 420 and 406 IPC is clearly made out against the applicants on the basis of evidence on record and it is also not so unimpeachable that if it is not rebutted then a conviction can be based onHigh Court was of the view that framing of charge was not sustainable.

Reasoning: on the basis of materials on record, a court could come to the conclusion that commission of the offence is a probable consequence; a case for framing of charge exists. To put it differently, if the court were to think that the accused might have committed the offence it can frame the charge, though for conviction the conclusion is required to be that the accused has committed the offence. It is apparent that at the stage of framing of a charge, probative value of the materials on record cannot be gone into; the materials brought on record by the prosecution has to be accepted as true at thatpresent case is not one where the High Court ought to have interfered with the order of framing the charge. As rightly submitted by learned counsel for the appellant, even if there is a strong suspicion about the commission of offence and the involvement of the accused, it is sufficient for the court to frame a charge. At that stage, there is no necessity of formulating the opinion about the prospect of conviction.