Case: A. Joseph Salvaraj Vs. State of Gujarat &amp; Others

Mr. Lalabhai quoted Rs. 30 lacs for persuading all the three operators to commence the telecast ofin their respective areas in Ahmedabad but the same was settled for Rs. 10 lacs. Thus, according to the complainant, Mr. Lalabhai (and 2 other cable operators) had agreed to broadcast, religious channelat Ahmedabad, after the Appellant had agreed to pay a sum of Rs. 10 lacs to Mr. Lalabhai.7. However, it appears that there was no Agreement in writing executed and entered into between Mr. Lalabhai and the Appellant. Furthermore, there has not been any Agreement between complainant and either of the aforesaid two parties. According to him, on his own, he had acted only as a mediator.8. From time to time, the Complainant kept reminding the appellant about payment of the amount of Rs. 10 lacs to Mr. Lalabhai. But according to the Complainant, the appellant deliberately avoided his communications. In the meanwhile, the cable operators who had started telecastingre also pressurizing the Complainant for the said amount.9. As mentioned hereinabove for about five months, they enjoyed watchingut any disruption but thereafter the reception signals of the said channel developed some technical snag. Thus, from October 2005, on account of poor quality of receivers, the reception was also not clear and was blurred. He once again contacted the Appellant who agreed to send receiver to the Complainant. After having received the said receiver, it was delivered to Mr. Lalabhai but as per the Complainants version, by that time the amount of Rs. 10 lacs as agreed to between Mr. Lalabhai and the present Appellant was still not paid. Having failed to elicit a verbal response, the Complainant thereafter wrote a series of letters and sent e-mails to the Appellant, ultimately culminating in a notice dated 21.06.2006, to which the Appellant replied on 18.07.2006, denying all accusations and liabilities. Then the problem started and Respondent No. 4 lodged the FIR against the Appellant as mentioned hereinabove.10. After completion of the investigation, as per the FIR lodged by the Complainant on 05.09.2006, the Appellant was arrested at Chennai for commission of the said offences on 17.11.2006. He was thus constrained to file an application under Section 437 of the Code of Criminal Procedure, 1973 (hereinafter shall be referred to as the `Code) for grant of bail to him. The same was granted to him on the conditions mentioned in the order dated 22.11.2006.11. The Appellant, thereafter, was constrained to file the petition under Section 482 of the Code in the High Court of Gujarat at Ahmedabad, with a prayer for quashing of the FIR bearing C.R. No. I-371/2006 registered with Odhav Police Station and to stay further investigation in the case. The said application came to be considered before the learned Single Judge on 11.1.2007. By that time, charge sheet was already filed before the Competent Criminal Court. Thus, learned Single Judge, was of the opinion that it was not a fit case to be entertained and refused to hear the petition on merits, even though the appellant was given liberty to file an application for his discharge before the Trial Court. It may be noted that even in its impugned order the learned Single Judge has emphasized that he had not considered the case on merits. Thus the Appellants petition was dismissed and interim order granted in his favour was vacated.12. Now the Order dated 11.01.2007 passed by the learned Single Judge of the High Court in Appellants Criminal Application No. 1977 of 2006, is subject matter of challenge in this Appeal.

Court's reasoning:
25. In our opinion, the matter appears to be purely civil in nature. There appears to be no cheating or a dishonest inducement for the delivery of property or breach of trust by the Appellant. The present FIR is an abuse of process of law. The purely civil dispute, is sought to be given a colour of a criminal offence to wreak vengeance against the Appellant. It does not meet the strict standard of proof required to sustain a criminal accusation.26. In such type of cases, it is necessary to draw a distinction between civil wrong and criminal wrong as has been succinctly held by this Court in Devendra Vs. State of U.P., 2009 (7) SCC 495 , relevant part thereof is reproduced hereinbelow:distinction must be made between a civil wrong and a criminal wrong. When dispute between the parties constitute only a civil wrong and not a criminal wrong, the courts would not permit a person to be harassed although no case for taking cognizance of the offence has been made out.In fact, all these questions have been elaborately discussed by this Court in the most oft quoted judgment reported in 1992 (Suppl) 1 SCC 335  State of Haryana Vs. Bhajan Lal, where seven cardinal principles have been carved out before cognizance of offences, said to have been committed, by the accused is taken. The case in hand unfortunately does not fall in that category where cognizance of the offence could have been taken by the court, at least after having gone through the F.I.R., which discloses only a civil dispute.28. The Appellant cannot be allowed to go through the rigmarole of a criminal prosecution for long number of years, even when admittedly a civil suit has already been filed against the Appellant and Complainant- Respondent No. 4, and is still subjudice. In the said suit, the Appellant is at liberty to contest the same on grounds available to him in accordance with law as per the leave granted by Trial Court. It may also be pertinent to mention here that the complainant has not been able to show that at any material point of time there was any contract, much less any privity of contract between the Appellant and Respondent No. 4 - the Complainant. There was no cause of action to even lodge an FIR against the Appellant as neither the Complainant had to receive the money nor he was in any way instrumental to telecastin the central areas of Ahmedabad. He appears to be totally a stranger to the same. Appellants prosecution would only lead to his harassment and humiliation, which cannot be permitted in accordance with the principles of law.29. Thus, looking to the matter from all angles, we are of the considered opinion that the prosecution of the Appellant for commission of the alleged offences would be clear abuse of the process of law.