Case: M/S. Shree Mahavir Carbon Ltd Vs. Om Prakash Jalan (Financer)

The appellant-company has filed a complaint registered as ICC No.62/2008 under Sections 420/406/468/471, Indian Penal Code against the respondent herein and two others. After recording preliminary evidence, the learned Judicial Magistrate First Class (JMFC), Salipur, Orissa took cognizance of the aforesaid offence and issued summons to the accused persons including the respondents. On receiving the summons, the respondents filed applications under Section 482 of the Code of Criminal - Procedure with a prayer that orders dated 9.6.2008 by the learned JMFC taking cognizance of the complaint be quashed. It was pleaded that the complaint was with regard to rendition of accounts maintained by the accused persons in respect of business between the complainant and the accused persons and therefore the dispute was of civil nature. The High Court has allowed the said application thereby setting aside orders taking cognizance of the offence. It is this order which is challenged by the appellant-complainant in these proceedings.3. The impugned order is two page order. After taking note of facts in one paragraph, the High Court has allowed the application and quashed the order taking cognizance of the offence and the discussion leading to this judgment is contained in the followingperusal of the nature of allegations made in the complaint petition and the statements given by the complainant and the witnesses, it is clearly disclosed that the dispute is civil in nature relating to settlement of the accounts between the parties and no offence is made

Court's reasoning:
We are of the opinion that while recording the decision with clarity, the Court is also supposed to record sufficient reasons in taking a particular decision or arriving at a particular conclusion. The reasons should be such that they demonstrate that the decision has been arrived at on a objectiveare not entering into a jurisprudential debate on the appropriate theory of legal reasoning. It is not even a discourse on how to write judgments. Our intention is to simply demonstrate the importance of legal reasoning in support of a particular decision. What we have highlighted is that instant is a case or arriving at a conclusion, in complete absence of reasons, what to talk of adequate or good reasons that justifying thatwas required by the High Court to take note of the arguments of the complainant on the basis of which complainant insist that ingredients of the particular offences alleged are prime facie established justifying the cognizance of the complaint and the arguments of the respondents herein on the basis of which respondents made an endeavour to demonstrate that it was a pure civil dispute with no elements of criminality attached. Thereafter, the conclusion should have been backed by reasons as to why the arguments of the complainant are merit less and what is the rationale basis for accepting the case of accused persons. We hope that this aspect would be kept in mind by the High Court while deciding the case afresh.