LexM/S INDIAN OIL CORPORATION versus M/S NEPC INDIA LTD. AND ORS.
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A MIS INDIAN OIL CORPORATION v. M/S NEPC INDIA LTD. AND ORS. JULY 20, 2006 B [H.K. SEMA AND R.V. RA VEENDRAN, JJ.] Code of Criminal Procedure, 1973: Sections 482 and 200-Disputes arising from breach of contract- C Existence or availment of civil remedy-Permissibility of simultaneous or subsequent recourse to remedies under criminal law-Permissibility of-Held: When civil remedies are available in law and the party had taken recourse to such remedies, remedy under criminal law is not barred nor the party estopped from seeking such remedy-Criminal proceedings should not be D quashed in view of the pendency of civil proceedings-Teo·t is not whether civil remedy is availed or available, bur whether the allegations in complaint disclose criminal offence or not. E Section 482-Quashing of complaints and criminal proceedings- Exercise of jurisdiction--General principles-Stated.. Penal Code, 1860: Sections 378, 403, 405, 415 and 425-Dispute arising from breach of contract-Debtor hypothecating aircrafts in favour of creditor for securing payment towards Juel supplied to it-Failure to pay amounts towards fuel-Civil suit for recovery of amount-On the allegation that debtor removed parts of hypothecated aircrafts, complaint under sections F 378, 403, 405, 415 and 425-Sustainability of-Held: Allegations in the complaint sufficient to constitute offences under sections 415 and 425-No case made out under sections 378, 403 and 405-Thus, order of High Court quashing the complaint under sections 415 and 425 set aside-Code of Criminal Procedure, 1973-Sections 482 and 200. G H Judicial deprecation: Civil disputes and claims not involving any criminal offe11ce-Effort to settle under criminal law-Held: In such cases criminal prosecution should be deprecated. Appellant-Indian Oil Corporation entered into a contract with first 704 INDIAN OIL CORPORATION v. NEPC INDIA LTD. 705 respondent and its sister company for supply of aviation turbine fuel and A lubricants. Respondent hypothecated its aircrafts to the appellant to secure the outstanding amounts under the Hypothecation deed towards payment of fuel supplied to it. Respondent failed to pay the installments as per the schedule and also as per the revised payment schedule. However subsequently appellant resumed supply of aircraft fuel on cash and carry basis. Apprehending that the respondent may remove hypothecated aircrafts B appellants sought injunctive reliefs to restrain the respondent from removing the aircraft. Thereafter, on finding that the respondents had removed engines and certain other parts from the two hypothecated aircrafts, appellant filed the complaints against the first respondent and its directors under section 200 Cr.P.C and sections 378, 403, 405, 415 and 425 IPC. Respondents filed C petition under section 482 Cr.P.C. for quashing the complaints contending (I) that the complaints related to purely contractual disputes of a civil nature in respect of which appellant had already sought injunctive reliefs and money decrees; and that (II) the allegations in the complaints did not constitute any criminal offence under sections 378, 403, 405, HS and 425 IPC. High Court quashed the complaints accepting the second ground but rejected the first D ground. Hence the present appeals. Partly allowing the appeals, the Court HELD: The allegations in the complaint are sufficient to constitute offences under sections 415 and 425 oflPC. High Court was not justified in E quashing the complaints/criminal proceedings in entirety. Thus, the order of High Court insofar it quashes the complaint under sections 415 and 425 IPC is set aside. 1728-A-B] 2. Complaints can be quashed in exercise of power under s.482 Cr.P.C. F in the following circumstance: (i) A complaint can be quashed where the allegations made in the complaint, even if they are taken at their face value and accepted in their entirety, do not primafacie constitute any offence or make out the case alleged against the accused. For this purpose, the complaint has to be examined as a G whole, but without examining the merits of the allegations. Neither a detailed inquiry nor a meticulous analysis of the material nor an assessment of the reliability or genuineness of the allegations in the complaint is warranted while examining prayer for quashing of a complaint. 1714-C-F] (ii) A complaint may also be quashed where it is a clear abuse of the H 706 SUPREME COURT REPO
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