TMI Blog1999 (9) TMI 1002X X X X Extracts X X X X X X X X Extracts X X X X ..... Procedure (for short the Code). The accused Directors thereupon moved the High Court of Gujarat under Section 482 of the Code for quashing the complaint. A single Judge of the High Court quashed the complaint as also the order passed by the Magistrate thereon. Complainant has, therefore, filed this appeal. The gist of the complaint is this: In the month of October 1996 the accused Directors approached him and offered to supply 5450 metric tones of Toasted Soyabean Extractions for a price of nearly four and a half crores of rupees. The rate quoted by the accused was higher than the market price. Appellant had to pay the price in advance as demanded by the accused. So the same was paid through cheques. But the accused sent the commodity whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e thereon. On the first count learned single judge pointed out that there was a specific clause in the Memorandum of Understating arrived between the parties that disputes, if any, arising between them in respect of any transaction can be resolved through arbitration. High Court made the following observations: Besides supplies of processed soyabean were received by the complainant company without any objection and the same have been exported by the complainant-company. The question whether the complainant- Company did suffer the loss as alleged by it are the matters to be adjudicated by the Civil Court and cannot be the subject matter of criminal prosecution. Time and again this Court has been pointing out that quashment of FIR or a co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f such investigation would be justified only in very extreme cases as indicated in State of Haryana vs. Bhajaj Lal (Supra). Learned single judge has accepted the alternative contention advanced by the respondent pertaining to want of jurisdiction for the Judicial Magistrate of First Class, Gandhidham in respect of the offence alleged in the complaint. This is what the High Court has said on that aspect: Further, there is nothing in the complaint which shows that any part of the transaction took place within the territories of the State of Gujarat. It appears that even the supply of processed soyabean was delivered to the complainant-company at the factory itself. In my view, therefore, Mr. Shah is right in contending that the court of the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (c) Upon information received from any person other than a police officer, or upon his own knowledge, that such offence has been committed. (ii) The Chief Judicial Magistrate may empower any Magistrate of the second class to take cognizance under sub-section (1) of such offences as are within his competence to inquire into or try. Section 193 imposes a restriction on the court of sessions to take cognizance of any offence as a court of original jurisdiction. But any Magistrate of the First Class has the power to take cognizance of any offence, no matter that the offence was committed within his jurisdiction or not. The only restriction contained in Section 190 is that the power to take cognizance is subject to the provisions of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enquire into or try the offence and that situation would reach only during the post cognizance stage and not earlier. Unfortunately, the High Court, without considering any of the aforesaid legal aspects rushed to the erroneous conclusion that the judicial magistrate of first class, Gandhidham has no power to take cognizance of the offences alleged merely because such offences could have been committed outside the territorial limits of the State of Gujarat. Even otherwise, without being apprised of the fuller conspectus a decision on the question of jurisdiction should not have been taken by the High Court at a grossly premature stage as this. For all the aforesaid reasons we are unable to concur with the impugned judgment. We, therefore, q ..... X X X X Extracts X X X X X X X X Extracts X X X X
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