Mahendra Sahani vs State of U.P. and Another — Cheating and Forgery | Allahabad HC (2026)

Mahendra Sahani vs State of U.P. and Another — Cheating and Forgery | Allahabad HC (2026)

What the court decided

AI extract

Outcome

Interim relief only: notice issued to opposite party no. 2 returnable at an early date; learned A.G.A. and counsel for opposite party no. 2 to file counter affidavit within two weeks, rejoinder affidavit within one week thereafter; matter to be listed after eight weeks; until further orders, further proceedings of Criminal Case No. NIL of 2024 shall remain stayed against the applicant. Application not finally decided.

Issue for consideration

Whether the entire proceedings of Criminal Case No. NIL of 2024 (arising out of Case Crime No. 332 of 2023, Sections 420, 406, 506 IPC) and the cognizance/summoning order dated 07.02.2024 should be quashed, the applicant contending that a civil dispute between partners over profit of the firm was converted into a criminal case and that the cognizance order was passed without considering the essential ingredients of the offence or applying judicial mind.

Court's answer

Prima facie, the matter requires consideration.

Ratio / Principle

Until further orders of this Court, further proceedings of Criminal Case No. NIL of 2024 shall remain stayed against the applicant.

Detailed headnote1 paragraphs

Quashing application under Section 528 BNSS (Allahabad High Court, Sanjay Kumar Pachori, J., February 6, 2026) seeking quashing of the entire proceedings of Criminal Case No. NIL of 2024, arising out of Case Crime No. 332 of 2023 under Sections 420, 406, 506 IPC, Police Station Kotwali, District Gorakhpur, and the cognizance/summoning order dated 07.02.2024 of the Additional Chief Judicial Magistrate, Court No. 2, Gorakhpur. Applicant contended the FIR dated 26.09.2023 was lodged with ulterior motive, that a dispute between two partners over profit of the firm — a money-recovery matter — was converted into a criminal case, and that the cognizance order was passed without considering the essential ingredients of the offences under Sections 406 and 420 IPC or applying judicial mind; counsel relied on Delhi Race Club (1940) Ltd. v. State of Uttar Pradesh, 2024 SCC OnLine SC 2248. Holding the matter to prima facie require consideration, the Court issued notice to opposite party no. 2, directed counter and rejoinder affidavits, and stayed further proceedings of the case against the applicant until further orders.

HIGH COURT OF JUDICATURE AT ALLAHABAD

APPLICATION U/S 528 BNSS No. - 2006 of 2026

Mahendra Sahani

.....Applicant(s)

	Versus
State of U.P. and Another			.....Opposite Party(s)
Counsel for Applicant(s) Counsel for Opposite Party(s)	: Kamal Sanjeev : G.A.	Kishor Mishra, Kumar	Kavita Nishad,

Court No. - 74

HON'BLE SANJAY KUMAR PACHORI, J.

Heard Shri Kamal Kishor Mishra, learned counsel for the applicant and Sri Pusp Raj Singh, brief holder for the State.

The present application under Section 528 of the Bharatiya Nagarik Suraksha Sanhita has been filed to quash the entire proceedings of Criminal Case No. NIL of 2024, arising out of Case Crime No. 332 of 2023, under Sections 420, 406, 506 of I.P.C., Police Station- Kotwali, DistrictGorakhpur, as well as cognizance/ summoning order dated 07.02.2024 pending in the Court of Additional Chief Judicial Magistrate, Court No. 2, Gorakhpur.

Learned counsel for the applicant submit that the first information report dated 26.09.2023 has been lodged on the basis of false and frivolous allegations with ulterior motive and only to harass the present applicant. It is further submitted that as per allegations of the F.I.R, there is a dispute between two partners with regard to profit of the firm. The first informant instead of filing a suit for recovery of money, the impugned F.I.R. has been filed.

It is further submitted that the first informant converted a civil dispute into a criminal case. It is further submitted that the cognizance order has been passed without considering the essential ingredients of the offence as well as without applying judicial mind punishable under Section 406, 420 of I.P.C. for the same set of the act respectively. In support of his submission, learned counsel for the applicant relied upon a judgment of Apex Court in Delhi

NA528 No. 2006 of 2026

2

Race Club (1940) Ltd. & Ors. Vs. State of Uttar Pradesh & Anr. 2024 SCC OnLine SC 2248.

Prima facie, matter requires consideration.

Notice on behalf of opposite party no. 1 has been accepted by learned A.G.A.

Issue notice to opposite party no. 2 returnable at an early date.

Learned A.G.A. as well as learned counsel for the opposite party no. 2 may file counter affidavit within two weeks. Rejoinder affidavit may be filed within one week thereafter.

List after eight weeks.

Until further orders of this Court, further proceedings of the aforesaid case, shall remain stayed against the applicant.

February 6, 2026 Ishan

(Sanjay Kumar Pachori,J.)

Digitally signed by :- ISHAN JAISWAL High Court of Judicature at Allahabad