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2008 (12) TMI 796 - SC - Indian LawsPrayer to Quash the Proceedings - Cognizance of offence punishable under Sections 406 and 420 of the Indian Penal Code, 1860 (`IPC') - hire purchased finance - HELD THAT:- The appellants have introduced a fabricated letter dated 24.6.1995. It is their stand that the entire amount was paid and, therefore, on receiving the full payment, the appellants ought to have returned the cheques which were held only as a collateral security. It is not in dispute that the proceedings u/s 138 are pending. That being so, the question of proceeding for alleged breach of trust does not arise. It is interesting to note that the respondent does not dispute issuance of cheques. Even a casual reading of the complaint does not show that the ingredients of Section 406 IPC are in any event made out. It is also not understandable as to how Section 294 has any application to the facts of the case much less Section 506 IPC. In addition to this, perusal of the complaint apparently shows the ulterior motive. It is clear that the proceeding initiated by the respondent clearly amounted to abuse of the process of law. In State of Haryana v. Bhajan Lal [1992 (12) TMI 234 - SUPREME COURT] ; ''(7) Where a criminal proceeding is manifestly attended with mala fide and/or where the proceeding is maliciously instituted with an ulterior motive for wreaking vengeance on the accused and with a view to spite him due to private and personal grudge.'' The case at hand falls under category (7). Therefore, in view of what has been stated in Bhajan Lal's case (supra), the proceedings before learned SDJM, stand quashed. The appeal is allowed.
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