M/S. SHREE MAHAVIR CARBON LTD. versus OM PRAKASH JALAN (FINANCER) & ANR.

Citation: [2013] 10 S.C.R. 541 · Decided: 28-10-2013 · Supreme Court of India · Bench: K.S. RADHAKRISHNAN · Disposal: Appeal(s) allowed

Judgment (excerpt)

[2013] 10 S.C.R. 541 
M/S. SHREE MAHAVIR CARBON LTD. 
v. 
OM PRAKASH JALAN (FINANCER) & ANR. 
(Criminal Appeal No. 1875 of 2013) 
OCTOBER 28, 2013 
[K.S. RADHAKRISHNAN AND A.K. SIKRI, JJ.] 
A 
B 
Judgment - Reasoned judgment - Need for - Held: The 
Court while recording a decision, is supposed to record 
sufficient reasons for taking the decision or arriving at a 
C 
particular conclusion - The reason should be such that they 
demonstrate that the decision has been arrived at, on an 
objective consideration - In the instant case, the High Court, 
set aside the order of subordinate criminal court without 
assigning any reason as to how it reached the conclusion that D 
the dispute was of civil nature - Matter remanded to High 
Court- Code of Criminal Procedure, 1973 - s.482 - Penal 
Code, 1860 - ss.420140614681471, 
Words and Phrases - 'Reasoning' - Meaning of. 
E 
Judicial Magistrate took cognizance of offences· ulss. 
420140614681471 IPC against the respondents, on the 
basis of complaint filed by the appellant-Company. 
Respondents· filed application uls.482 Cr.P .C. seeking 
quashing of the criminal proceedings. The High Court 
F 
allowed the petition setting 'aside the orders taking 
cognizance, on the ground that the dispute was of civil 
nature. Hence the present appeal. 
Allowing the appeal and remanding the matter.to G 
High Court, the Court 
HELD: 1.1. It is to be borne in mind that the principal 
objective in giving judgment is to make an effective, 
541 
H 
542 
SUPREME COURT REPORTS 
[2013] 10 s.c.~. 
A practical and workable decision. The court resolves 
conflict by determining the merits of conflicting cases, 
and by choosing between notions of justice, 
convenience, public policy, morality, analogy, and takes 
into account the opinions of other courts or writers 
B (Precedents). Since the court is to come to a workable 
decision, its reasoning and conclusion must be practical, 
suit the facts as found and provide an effective, workable 
remedy to the winner. While recording the decision with 
clarity, the court is also supposed to record sufficient 
c 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 an objective consideration. [Paras 12 and 13) [549-G-
H; 550-A-C] 
D 
2. In the context of legal decision-mald9g, the focus 
is to what makes something a legal valid reason. Thus, 
''.reason would mean a justifying reason, or more simply 
a justification for a decision is a consideration, in a non-
arbitrary ways in favour of making or accepting that 
E . decision. If there is no justification in support of a 
decision, such a decision is without any reason or 
justifying reason. [Para 14) [550-C-D) 
3. In the present case, it was required by the High 
Court to take note of the arguments of the complainant 
F on the basis of which compl~inant insist that ingredients 
of the particular offences alleged are prime facie 
established justifying the cognizance of the complaint 
and the arguments· of the respondents, on the basis of 
which respondents made an endeavour to demonstrate 
G 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. [Para 
H 16) [550-G-H; 551 ·A] 
SHREE MAHAVIR CARBON LTD. v. OM PRAKASH 
543 
JALAN (FINANCER) & ANR. 
4. The appellant/complainant sought to make a 
A 
complaint that the acts of the accused persons amounted 
to offence since punishable u/ss. 420/406/468/471 IPC. 
The Judicial Magistrate, after going through the 
preliminary evidence recorded by him had chosen to take 
cognizance of the matter. It was bounden duty of the 
B 
High Court to give appropriate and sufficient reasons on 
the basis of which it arrived at a conclusion that the 
dispute was merely that of accounts with no elements of 
criminality. It is correct that ingredients of each of the 
provisions of IPC, which is sought to be foisted upon the c 
respondents are to be prima facie established before 
cognizance of the complaint is taken by the Judicial 
Magistrate. H~wever, when the summoning order is 
quashed holding that it is a civil dispute, various 
allegations and averments made in the complaint and 
D 
preliminary evidence led in support thereof has to be 
appropriate

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