Tag: Abuse of Process of Law

Landmark Ruling: Supreme Court Bars Prosecution of Company Directors Without Suing the Company First
30Sep By The Legal ChamberNo Comments
Supreme Court

Landmark Ruling: Supreme Court Bars Prosecution of Company Directors Without Suing the Company First

The Supreme Court quashed the criminal defamation proceedings against the bank officials. It held that for offences under the Indian Penal Code, there is no concept of vicarious liability. Prosecuting officers without arraigning the company as an accused and without specific allegations of their culpable role is impermissible and an abuse of process. Facts Of The Case: The case originated from a loan default by Phoenix India, which had secured credit facilities from the Bank of Baroda. After the firm's account was classified as a non-performing asset, the Bank initiated recovery under the SARFAESI Act. A critical error occurred when the Bank issued a symbolic possession notice under Section 13(4) of the Act, which inadvertently quoted the outstanding dues as approximately Rs. 56.15 cro...
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Supreme Court Explains When a Criminal Court Cannot Change Its Own Order :”Functus Officio”
23Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Explains When a Criminal Court Cannot Change Its Own Order :”Functus Officio”

The Supreme Court held that proceedings under Section 340 CrPC are criminal in nature and thus governed by the CrPC. Consequently, a review petition filed under Order XLVII of the CPC is not maintainable. The Court reiterated that Section 362 CrPC bars criminal courts from altering or reviewing their own judgments, except for correcting clerical errors, and the High Court's recall order constituted an impermissible substantive review. Facts Of The Case: The dispute originated between two groups, the Khosla Group and the Bakshi Group, regarding a joint venture to develop a resort in Kasauli. A key point of contention was the validity of the Annual General Meeting (AGM) of their joint venture company, Montreaux Resorts Private Limited (MRPL), held on 30.09.2006. The Bakshi Group relied on ...
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Complete Justice: Supreme Court Uses Special Powers to End Family Dispute, Quashes FIR After Settlement
16Sep By The Legal ChamberNo Comments
Supreme Court

Complete Justice: Supreme Court Uses Special Powers to End Family Dispute, Quashes FIR After Settlement

The Supreme Court, invoking its powers under Article 142 of the Constitution, quashed the criminal proceedings. It held that continuing prosecution after a mutual divorce and full settlement serves no legitimate purpose and amounts to an abuse of the process of law, especially in the absence of specific allegations. Facts Of The Case: The case originated from an FIR (No.67 of 2019) registered by the second respondent against her husband (appellant No.1) and in-laws (appellant Nos. 2 & 3) under Sections 323, 406, 498-A, and 506 of the IPC, alleging cruelty, criminal breach of trust, and criminal intimidation. The marriage, solemnized in March 2018, lasted approximately ten months before the wife left the matrimonial home. Subsequently, a chargesheet was filed in November 2019. However...
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Supreme Court Quashes FIR in Loan Case, Says Mere Default Doesn’t Make It a Crime
13Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Quashes FIR in Loan Case, Says Mere Default Doesn’t Make It a Crime

The Supreme Court held that a loan transaction creates a debtor-creditor relationship, and a mere breach of its terms does not automatically constitute criminal breach of trust under Section 405 IPC without evidence of dishonest intention. The Court clarified that such disputes, arising from commercial transactions, are primarily civil in nature and a preliminary inquiry is permissible before registering an FIR. Facts Of The Case: The appellant, a director of M/s Benlon India Ltd., availed three loans from the first respondent, Hero Fincorp, for purchasing machinery. While the first two loans were used for the intended purpose, a fire destroyed the plant shortly after the disbursement of the third loan. Consequently, this third loan was converted into an unsecured corporate loan. Benlon ...
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Marriage Dead: Supreme Court Dissolves Union, Quashes 498A Case in Landmark Irretrievable Breakdown Ruling
6Sep By The Legal ChamberNo Comments
Supreme Court

Marriage Dead: Supreme Court Dissolves Union, Quashes 498A Case in Landmark Irretrievable Breakdown Ruling

The Supreme Court, invoking its extraordinary power under Article 142 of the Constitution, dissolved the marriage on the ground of irretrievable breakdown. It quashed the pending criminal proceedings under Section 498-A IPC, finding the allegations to be vague and arising from marital discord, while upholding the terms of a settlement agreement for a clean break. Facts Of The Case: The marriage between Anurag Goel (appellant-husband) and the second respondent (wife) took place on July 25, 2015, following prior divorces for both. After approximately one year and nine months of conjugal life, the relationship soured. The husband alleged constant harassment, leading him to abandon the matrimonial home—a Mumbai apartment he owned—in April 2017 to move to Faridabad with his autistic child fro...
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Supreme Court Shields Daughters-in-Law from Criminal Case Over Property Will
28Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Shields Daughters-in-Law from Criminal Case Over Property Will

The Supreme Court quashed criminal proceedings under Sections 419, 420, 467, 468, and 471 IPC, ruling the allegations did not prima facie constitute the alleged offences. Relying on Bhajan Lal, it held that criminal process cannot be used to settle civil disputes, as it amounts to an abuse of the court's process. Facts Of The Case: A testator, Shri Ram Baksh Dubey, executed an unregistered will in 1993 bequeathing his property to his four daughters-in-law, apprehensive that his third son, Ashish Kumar, would squander the estate. After the testator’s death in 1994, Ashish Kumar sold his purported share to the complainant, Balram, via a registered sale deed. The daughters-in-law, unaware of this sale, successfully obtained a mutation order in their favor based on the will. When Balram inte...
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When Protest Isn’t Nuisance: Supreme Court Explains Limits of Police Power, Quashes 5-Year-Old Case
28Aug By The Legal ChamberNo Comments
Supreme Court

When Protest Isn’t Nuisance: Supreme Court Explains Limits of Police Power, Quashes 5-Year-Old Case

The Supreme Court quashed the criminal proceedings, applying the Bhajan Lal principles. It held that the allegations, even if accepted entirely, did not prima facie constitute the offences under Sections 290, 341, 171F IPC, and Section 34 of the Police Act, 1861, as their essential ingredients were absent. Continuing the prosecution was deemed an abuse of the process of law. Facts Of The Case: During the 2019 General Elections, the Model Code of Conduct was in force in Andhra Pradesh. On March 22, 2019, appellants Manchu Mohan Babu, an educational institution chairman, and his son, along with staff and students, conducted a rally and dharna on the Tirupati-Madanapalli Road. They were protesting the state government's failure to provide student fee reimbursements. The gathering, which las...
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Supreme Court Stops Misuse of Rape Laws : No Rape If Relationship Was Consensual
12Jun By The Legal ChamberNo Comments
Supreme Court

Supreme Court Stops Misuse of Rape Laws : No Rape If Relationship Was Consensual

The Supreme Court of India quashed criminal proceedings against the Appellant, finding that the alleged sexual assault and unnatural sex charges under Sections 376, 376(2)(n), 377, 504, and 506 of the IPC were not established. The Court held that the relationship was consensual, not based on a false promise to marry, and the complaint was likely motivated by a "disgruntled state of mind". The case fell under categories for quashing criminal proceedings to prevent abuse of process of law. Facts Of The Case: This appeal arises from the dismissal of Amol Bhagwan Nehul's petition to quash Criminal Case C.R. No. 490/2023, registered on July 31, 2023, for alleged offenses under Sections 376, 376(2)(n), 377, 504, and 506 IPC. The Complainant, Respondent No. 2, alleged that the Appellant forci...
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Supreme Court Protects NGO Workers: Quashes Criminal Case Against Anti-Trafficking Activists, Slams ‘Vexatious Prosecution'”
9May By The Legal ChamberNo Comments
Supreme Court

Supreme Court Protects NGO Workers: Quashes Criminal Case Against Anti-Trafficking Activists, Slams ‘Vexatious Prosecution'”

The Supreme Court quashed criminal proceedings under Sections 186 (obstruction) and 353 IPC (assault on public servant) against anti-trafficking activists, holding the allegations lacked mens rea and essential ingredients of the offences. It ruled the prosecution was legally barred under Section 195 CrPC (requiring complaint by aggrieved public servant) and non-cognizable without magistrate approval under Section 155(2) CrPC. The Court emphasized that inherent powers under Section 482 CrPC must prevent vexatious prosecutions, especially where prima facie allegations fail to disclose offences. The judgment reaffirmed that disputed facts in FIRs must be scrutinized to safeguard liberty against abuse of process. Facts Of The Case: The case involved Umashankar Yadav and another appellant, me...
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