Dismissed

Ajit Issac v. State of U.P. and 3 Others

Allahabad HC2 May 2023CRLP/3217/2023

Case brief

AI extract

What is this about?

The High Court of Judicature at Allahabad dismissed four connected criminal writ petitions seeking quashing of FIRs arising from criminal complaints. The court rejected the petitioner's argument that the dispute is purely civil and barred for arbitration, holding that the FIR disclosed a cognizable offence based on breaches of contract causing revenue loss.

What did the court decide?

Prayer to quash the FIRs dated 15.02.2023 was rejected.

Ajit Issac Vs State of U.P. and 3 Others — Contract and Commercial Disputes | Allahabad HC (2023)

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Reserved on: 11.04.2023 Delivered on: 02.05.2023

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Court No. - 46

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Case :- CRIMINAL MISC. WRIT PETITION No. - 3217 of 2023

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Petitioner :- Ajit Issac Respondent :- State Of U.P. And 3 Others Counsel for Petitioner :- Sushant Counsel for Respondent :- G.A.

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Connected with

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Case :- CRIMINAL MISC. WRIT PETITION No. - 3228 of 2023

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Petitioner :- Ajit Issac Respondent :- State Of U.P. And 3 Others Counsel for Petitioner :- Sushant Counsel for Respondent :- C.S.C.

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AND

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Case :- CRIMINAL MISC. WRIT PETITION No. - 3229 of 2023

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Petitioner :- Ajit Issac Respondent :- State Of U.P. And 3 Others Counsel for Petitioner :- Sushant Counsel for Respondent :- G.A.

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AND

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Case :- CRIMINAL MISC. WRIT PETITION No. - 3230 of 2023

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Petitioner :- Ajit Issac Respondent :- State Of U.P. And 3 Others Counsel for Petitioner :- Sushant Counsel for Respondent :- G.A.

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Hon'ble Anjani Kumar Mishra,J. Hon'ble Ms. Nand Prabha Shukla,J.

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Delivered by Hon'ble Ms. Nand Prabha Shukla,J.

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Since the controversy and facts involved in the aforesaid connected writ petitions are the same, therefore, they are being heard and decided together by a common order with the consent of the parties.

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Heard Sri Gopal Swaroop Chaturvedi, Senior Advocate assisted by Sri Sushant Chandra and Sri Aviral Dhirendra, learned counsels for the petitioner and learned AGA for the State and perused the record.

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The instant writ petition seeks quashing of the FIR dated 15.02.2023 arising out of Case Crime No. 0082 of 2023, under Section 409 IPC, Police Station- Kotwali, District-Ballia.

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In Criminal Misc. Writ Petition No. 3228 of 2023, the petitioner seeks quashing of the FIR dated 15.02.2023 arising out of Case Crime No. 0084 of 2023, under Section 409 IPC, Police StationKotwali, District-Ballia.

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In Criminal Misc. Writ Petition No. 3229 of 2023, the petitioner seeks quashing of the FIR dated 15.02.2023 arising out of Case Crime No. 0083 of 2023, under Section 409 IPC, Police StationKotwali, District-Ballia.

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In Criminal Misc. Writ Petition No. 3230 of 2023, the petitioner seeks quashing of the FIR dated 15.02.2023 arising out of Case Crime No. 0085 of 2023, under Section 409 IPC, Police StationKotwali, District-Ballia.

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The contention raised by learned counsel for the petitioner is that the petitioner being the Chairman of Quess Corp Limited, has been falsely implicated and has no role in execution of the contract/LOI dated 20.09.2021 entered between the informant/various DISCOMs and the petitioner's Company. The main allegations levelled against the petitioner are in regard to breach/nonfulfillment of certain contractual obligations resulting in huge financial/revenue loss. It has further been argued that no offence

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under Section 409 IPC is made out against the petitioner as no property was entrusted to the petitioner in any manner nor there was any embezzlement of any fund. It was also stated that the dispute being civil in nature, therefore, the appropriate remedy would be before the Arbitral Tribunal in view of the Arbitration clause of LOI.

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Per contra , learned AGA for the State has opposed the aforesaid submissions and has asserted that there is breach of certain contractual obligations entrusted to the petitioner-company under the Contract/LOI dated 20.09.2021 in regard to door-to-door meter reading, on spot bill generation, bill distribution and bill collection etc. resulting in defective bills, non-issuance of bills, nondistribution of bills, discrepancies in meter reading, non-reporting of theft, non-reporting of new customers to the company etc. incurring huge financial/revenue loss to the discom.

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While considering the arguments raised by the parties and upon perusal of the record, we find the petitioner's Company entered into the agreement in the capacity of an agent and was entrusted to perform/fulfill certain contractual obligations in regard to door-todoor billing, downloading of meter reading using smartphone, spot billing generation and uploading of billed data etc.

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In this context, it is worth referring to the Clause 1.1.14 of the Letter of Intent dated 20.09.2022 placed as Annexure '2' of the writ petition which reads as follows:

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"In case any connivance is found between the employee(s) of the agency and consumer and results into loss of revenue to discom, the agency shall itself or on instruction from the utility, take legal action including filing police FIR against such employee(s) and terminate the service of such employees with immediate effect. The utility will have the right to deduct the penalties as

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defined in Clause 4.3 and SLA. Further, Utility will have the right to take legal action against the agency, in case rampant malpractices are observed among a large section of consumers."

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Considering the aforesaid Clause, the legal action taken against the petitioner is justifiable for acting in contravention to the terms of Contract/LOI entrusted to him causing huge financial/ revenue loss to the discom.

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Moreover, the allegations made in the First Information Report clearly disclose commission of cognizable offence. Therefore, prayer of the petitioner to quash the First Information Report is rejected.

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The writ petitions are, therefore, dismissed , without prejudice to the right of the petitioner to apply for bail/anticipatory bail.

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Order Date :- 2.5.2023 Shivani

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Digitally signed by :- SHIVANI SRIVASTAVA High Court of Judicature at Allahabad

Ajit Issac v. State of U.P. and 3 Others

Case brief

What is this about?

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Ajit Issac v. State of U.P. and 3 Others

Case brief

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