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2020 (1) TMI 1445 - SC - Companies LawCriminal conspiracy - receiving the sub-standard runner turbines which were not in conformity with the specified standard - whether a case has been made out to quash the FIR and the chargesheet against the Appellants for the offences Under Section 420 read with Section 120B of the Indian Penal Code, in exercise of powers Under Section 482 Code of Criminal Procedure? - HELD THAT:- The company, namely, M/s. SPML Infra Limited supplied substandard materials - runner bucket turbines and the supplied runner bucket turbines were not as per the technical specifications. It is also required to be noted that there is no FIR/complaint/chargesheet against the company - M/s. SPML Infra Limited and the Appellants are arrayed as an Accused as Managing Director and Director of M/s. SPML Infra Limited respectively. From a bare reading of the FIR and even the chargesheet, there are no allegations that there was a fraudulent and dishonest intention to cheat the government from the very beginning of the transaction. Even there are no specific allegations and averments in the FIR/chargesheet that the Appellants were in-charge of administration and management of the company and thereby vicariously liable. In light of the aforesaid, the prayer of the Appellants to quash the criminal proceedings against the Appellants for the offence Under Section 420 Indian Penal Code is required to be considered. In the case of Bhajan Lal [1990 (11) TMI 386 - SUPREME COURT], this Court has categorised the cases by way of illustration wherein the powers Under Article 226 or the inherent powers Under Section 482 Code of Criminal Procedure could be exercised either to prevent the abuse of the process of any court or otherwise to secure the ends of justice. The chargesheet has been filed against the Appellants for the offences Under Section 420 read with Section 120B of the Indian Penal Code. However, it is required to be noted that there are no specific allegations and averments in the FIR and/or even in the chargesheet that fraudulent and dishonest intention of the Accused was from the very beginning of the transaction. It is also required to be noted that contract between M/s. SPML Infra Limited and the Government was for supply and commissioning of the Nurang Hydel Power Project including three power generating units. The Appellants purchased the turbines for the project from another manufacturer. The company used the said turbines in the power project. The contract was in the year 1993 - this is a fit case to exercise the powers Under Section 482 Code of Criminal Procedure and to quash the criminal proceedings against the Appellants for the offence Under Section 420 read with Section 120B of the Indian Penal Code. To continue the criminal proceedings against the Appellants would be undue harassment to them. The impugned FIR and the chargesheet filed against the Appellants for the offence Under Section 420 Indian Penal Code are hereby quashed - Appeal allowed - decided in favor of appellant.
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