LexDINESH GUPTA versus STATE OF UTTAR PRADESH & ANR.
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* Author [2024] 1 S.C.R. 390 : 2024 INSC 32 Dinesh Gupta v. The State of Uttar Pradesh & Anr. (Criminal Appeal No(s). 214 of 2024) 11 January 2024 [Vikram Nath* and Rajesh Bindal,* JJ.] Issue for Consideration Despite the commercial nature of the dispute involved, criminal complaint was filed and an FIR was registered against the appellants. Whether, the High Court was justified in refusing to quash the FIR and the summoning order. Headnotes Administration of Justice – Abuse of process of law – Forum shopping – Financial transactions between parties based in New Delhi – On the basis of complaint filed by respondent- complainant, FIR was registered in Gautam Budh Nagar against three companies, appellants-promoters of the companies and other accused persons – Summons issued by Chief Judicial Magistrate, Gautam Budh Nagar – Appellants sought quashing of the FIR and the summoning order, petitions dismissed by High Court – Correctness: Held: The registration of FIR at Noida despite companies in question having registered offices at Delhi shows a wishful forum shopping by the Complainant – Though the complainant had invested crores of rupees in equity of the companies based at Delhi, knowing well their place of business, yet their incomplete addresses showing them at Gautam Budh Nagar, was deliberately mentioned to falsely create jurisdiction in Gautam Budh Nagar which did not actually lie there – Also, though address of the respondent was mentioned to be of Noida, his residential address was not given – Order of CJM shows no application of mind, as no reasons were assigned – Magistrate did not take into consideration the address of the complainant and the accused companies as also the addresses of their Directors – Further, claim of the respondent that the appellants had induced the complainant to advance loan [2024] 1 S.C.R. 391 Dinesh Gupta v. The State of Uttar Pradesh & Anr. and later on converted the loan into equity is false – It was a plain and simple transaction between the corporates – Even as per the complainant’s case, the short-term loan was advanced in the year 2010 for a period of one year – However, when the same was not returned, no steps were taken by the complainant to recover the same until the FIR in question was registered on 29.07.2018 i.e. 8 years & 7 months later – Furthermore, on facts, the complainant concealed material facts which were within his knowledge at the time of filing of complaint as regards the merger of the companies – Entire factual matrix and the time lines clearly reflects that the complainant deliberately and unnecessarily caused substantial delay and was waiting for opportune moment for initiating false and frivolous litigation – Impugned order set aside – FIR and all subsequent proceedings qua the appellants, quashed – Costs of ₹25 lakhs imposed on the respondent. [Paras 38, 23, 25-28, 32, 34, 37 and 39] Administration of Justice – Abuse of process of law – Misuse of criminal proceedings – Civil matter turned into criminal case – Practice deprecated – Unscrupulous litigants should not be allowed to go scot-free and be put to strict terms and conditions including costs – Litigation laced with concealment, falsehood, and forum hunting – State actions or conduct of government servants being party to such malicious litigation should be seriously reprimanded. [Paras 2, 38] Case Law Cited Randheer Singh v. The State of U.P. & others 2021 INSC 440: (2021) 14 SCC 626 – referred to. List of Acts Penal Code, 1860, Code of Criminal Procedure, 1973. List of Keywords Commercial dispute; Abuse of process of law; Forum shopping/ hunting; Quashing of FIR; Unscrupulous litigants; Territorial jurisdiction; Inappropriate use of jurisdiction; Abuse of criminal justice system; Principles of fairness; Misuse of criminal proceedings; Concealment, Falsehood; Material facts concealed; Costs; Abuse of judicial remedies. 392 [2024] 1 S.C.R. Digital Supreme Court Reports Case Arising From CRIMINAL APPELLATE JURISDICTION: Criminal Appeal No.214 of 2024 From the Judgment and Order dated 17.02.2022 of the High Court of Judicature at Allahabad in A482 No.29852 of 2021 With Criminal Appeal No.215 of 2024 Appearances for Parties Nakul Dewan, Kapil Sibal, Anjana Prakash, Vikas Singh, Sr. Advs., Harsh Sethi, Anant Nigam, Neil Chatterjee, Shantanu Parashar, Raghav Luthra, Nitin Bajaj, Shaurya Chaurasiya, Yash Saini, Avneesh Arputham, Mahesh Agarwal, Ri
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