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2019 (10) TMI 1559 - HC - Indian LawsCheating - breach of contract - IPO was not provided (as agreed upon) - fraudulent or dishonest intention at the time of making the representation, exists or not - HELD THAT:- In the First Information Report, the complainant company described how the accused persons induced the complainant company to purchase shares in question for the purpose of investment and issued a letter dated 29.03.2008 stating falsely that the shares in questions were allotted to the complainant company. From the materials placed on record it appears that the petitioners falsely informed the complainant that the shares were allotted. Learned Counsel for the petitioners has argued that the transaction in question between the parties as revealed from the contents of the First Information Report was purely a sale transaction or commercial transaction and the question of cheating does not arise at all. At the time of perusal of the First Information Report, it appears that the petitioners induced the complainant company to purchase the shares in question by misrepresentations and false assurance. In view of the provision contained in Section 420 of the Indian Penal Code, the intention of the offender who induces the complainant is the decisive in discerning whether the offence of cheating was committed or not. In fact, it cannot be denied that many a cheatings are being committed in the course of commercial and also money transactions - In the present case, the allegation in the First Information Report disclosed the offences alleged. Moreover, the allegations made in the F.I.R. disclosed that the petitioners induced the complainant to purchase share or invest money by wilful misrepresentation. It is true that the complaint discloses that there was a commercial transaction between the parties but at the same time, it cannot be overlooked that the averments made in the complaint/F.I.R. prima facie reveal the commission of an cognizable offence. Allegation contained in the F.I.R. involve appreciation of evidence. Moreover, when complaint discloses that the commercial transaction between the parties involves criminal offences, then the question of quashing the complaint cannot be allowed - the continuance of criminal proceedings against the present petitioners/accused would not be an abuse of the process of the Court. Hence, the prayer for quashing of the proceedings and setting aside the impugned order are hereby dismissed.
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