The High Court of Kerala at Ernakulam quashed criminal proceedings against petitioners accused under Sections 406 and 420 IPC for alleged non-fulfilment of an unregistered, non-binding term sheet allegedly lacking valid consideration.
The entire criminal proceeding is quashed. All connected Criminal Misc. Cases are allowed.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE P.SOMARAJAN
WEDNESDAY, THE 24TH DAY OF MARCH 2021 / 3RD CHAITHRA, 1943
Crl.MC.No.428 OF 2021(C)
CRIME NO.6/2021 OF ELATHUR POLICE STATION, KOZHIKODE
PETITIONER/1ST ACCUSED:
MR.KENICHI AYUKAWA MANAGING DIRECTOR OF MARUTI SUZUKI INDIA LIMITED, 1, NELSON MANDELA ROAD, VASANT KUNJ, NEW DELHI-110070.
BY ADVS. SRI.S.SREEKUMAR (SR.) SRI.NELSON JOSEPH SRI.MADHU RADHAKRISHNAN SRI.M.D.JOSEPH SHRI.DEEPAK ASHOK KUMAR
RESPONDENT NO.1/ RESPONDENT NO.2/COMPLAINANT:
1 STATE OF KERALA REPRESENTED THROUGH PUBLIC PROSECUTOR. HIGH COURT OF KERALA
2 KOYENCO AUTOS PVT LTD. HAVING ITS REGISTERED OFFICE AT 53 C, KOYENCO HOUSE, WESTHILL (PO), KOZHIKODE TALUK AND DISTRICT, KERALA-673005,THROUGH ASHIQUE P.P, DIRECTOR.
R2 BY ADV. SRI.S.RAJEEV R2 BY ADV. SRI.K.K.DHEERENDRAKRISHNAN R2 BY ADV. SRI.V.VINAY R2 BY ADV. SRI.K.ANAND
PUBLIC PROSECUTOR SRI.RAMESH CHAND, SRI.E.C.BINEESH
THIS CRIMINAL MISC. CASE HAVING BEEN FINALLY HEARD ON 24.03.2021, ALONG WITH Crl.MC.550/2021(G), Crl.MC.551/2021(H), Crl.MC.552/2021(H), THE COURT ON THE SAME DAY PASSED THE FOLLOWING:
Crl.MC.428/2021 AND CONNECTED CASES 2
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE P.SOMARAJAN
WEDNESDAY, THE 24TH DAY OF MARCH 2021 / 3RD CHAITHRA, 1943
Crl.MC.No.550 OF 2021(G)
CRIME NO.6/2021 OF ELATHUR POLICE STATION, KOZHIKODE
PETITIONER/2ND ACCUSED:
S.Y. SIDDIQUI, AGED 61 YEARS EXECUTIVE ADVISOR, MARUTI SUZUKI INDIA LIMITED, 1, NELSON MANDELA ROAD, VASANT KUNJ, NEW DELHI - 110 070.
BY ADVS. SRI.S.SREEKUMAR (SR.) SRI.MADHU RADHAKRISHNAN SRI.NELSON JOSEPH SRI.M.D.JOSEPH SHRI.DEEPAK ASHOK KUMAR
RESPONDENT NO.1/RESPONDENT NO.2/COMPLAINANT:
1 STATE OF KERALA REPRESENTED THROUGH PUBLIC PROSECUTOR, HIGH COURT OF KERALA, KOCHI- 682 031.
2 KOYENCO AUTO PVT. LTD., HAVING ITS REGISTERED OFFICE AT 53 C, KOYENCO HOUSE, WESTHILL P. O., KOZHIKODE TALUK AND DISTRICT, KERALA - 673 005, THROUGH ASHIQUI P.P, DIRECTOR.
R2 BY ADV. SRI.S.RAJEEV R2 BY ADV. SRI.K.K.DHEERENDRAKRISHNAN R2 BY ADV. SRI.V.VINAY R2 BY ADV. SRI.K.ANAND
THIS CRIMINAL MISC. CASE HAVING BEEN FINALLY HEARD ON 24.03.2021, ALONG WITH Crl.MC.428/2021(C), Crl.MC.551/2021(H), Crl.MC.552/2021(H), THE COURT ON THE SAME DAY PASSED THE FOLLOWING:
Crl.MC.428/2021 AND CONNECTED CASES 3
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE P.SOMARAJAN
WEDNESDAY, THE 24TH DAY OF MARCH 2021 / 3RD CHAITHRA, 1943
Crl.MC.No.551 OF 2021(H)
CRIME NO.6/2021 OF ELATHUR POLICE STATION, KOZHIKODE
PETITIONER/3RD ACCUSED:
PANKAJ BHANDULA, AGED 56 YEARS, VICE PRESIDENT OF MARUTI SUZUKI INDIA LIMITED,1,NELSON MANDELA ROAD, VASANT KUNJ,NEW DELHI-110070.
BY ADVS. SRI.MADHU RADHAKRISHNAN SRI.NELSON JOSEPH SRI.M.D.JOSEPH SHRI.DEEPAK ASHOK KUMAR SRI.S.SREEKUMAR (SR.)
RESPONDENT NO.1/RESPONDENT NO.2/COMPLAINANT:
1 STATE OF KERALA REPRESENTED THROUGH PUBLIC PROSECUTOR, HIGH COURT OF KERALA.
2 KOYENCO AUTOS PVT.LTD, HAVING ITS REGISTERED OFFICE AT 53 C, KOYENCO HOUSE,WESTHILL(P.O),KOZHIKODE TALUK AND DISTRICT,KERALA-673005, THROUGH ASHIQUE P.P, DIRECTOR.
R2 BY ADV. SRI.S.RAJEEV R2 BY ADV. SRI.K.K.DHEERENDRAKRISHNAN R2 BY ADV. SRI.K.ANAND
THIS CRIMINAL MISC. CASE HAVING BEEN FINALLY HEARD ON 24.03.2021, ALONG WITH Crl.MC.428/2021(C), Crl.MC.550/2021(G), Crl.MC.552/2021(H), THE COURT ON THE SAME DAY PASSED THE FOLLOWING:
Crl.MC.428/2021 AND CONNECTED CASES 4
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE P.SOMARAJAN
WEDNESDAY, THE 24TH DAY OF MARCH 2021 / 3RD CHAITHRA, 1943
Crl.MC.No.552 OF 2021(H)
CRIME NO.6/2021 OF ELATHUR POLICE STATION, KOZHIKODE
PETITIONER/4TH ACCUSED:
MR. VIPUL SACHDEVA, AGED 43 YEARS, DESIGN AND CONCEPT DEVELOPMENT, HEAD OF MARUTI SUZUKI INDIA LIMITED, 1, NELSON MANDELA ROAD, VASANT KUNJ, NEW DELHI - 110 070.
BY ADVS. SRI.S.SREEKUMAR (SR.) SRI.MADHU RADHAKRISHNAN SRI.NELSON JOSEPH SRI.M.D.JOSEPH SHRI.DEEPAK ASHOK KUMAR
RESPONDENT NO.1/RESPONDENT NO.2/COMPLAINANT:
1 STATE OF KERALA REPRESENTED THROUGH PUBLIC PROSECUTOR, HIGH COURT OF KERALA.
2 KOYENCO AUTOS PVT. LTD., HAVING ITS REGISTERED OFFICE AT 53 C, KOYENCO HOUSE, WESTHILL P. O., KOZHIKODE TALUK AND DISTRICT, KERALA - 673 005, THROUGH ASHIQUE P. P., DIRECTOR. R2 BY ADV. SRI.S.RAJEEV R2 BY ADV. SRI.K.K.DHEERENDRAKRISHNAN R2 BY ADV. SRI.V.VINAY R2 BY ADV. SRI.A.ANAND
THIS CRIMINAL MISC. CASE HAVING BEEN FINALLY HEARD ON 24.03.2021, ALONG WITH Crl.MC.428/2021(C), Crl.MC.550/2021(G), Crl.MC.551/2021(H), THE COURT ON THE SAME DAY PASSED THE FOLLOWING:
Crl.MC.428/2021 AND CONNECTED CASES 5
ORDER
The crime registered on the ground of violation
and non-fulfilment of an agreement under Section 406 and 420 r/w Section 34 IPC on a reference under Section 156(3) Cr.P.C. sought to be quashed by the petitioner/accused, Managing Director of a company. Annexure A3 is not supported by any consideration so as to make it as a valid contract and it is not a registered agreement. As such, it will not
satisfy a valid contract. Hence, it has no binding force.
complainant submitted that no consideration is necessary to effectuate an agreement for sale of immovable property. It cannot be accepted simply
on the reason that no different treatment was given with respect to a contract for sale of immovable property apart from the other contracts either in
the Indian Contract Act or in the Transfer of
Crl.MC.428/2021 AND CONNECTED CASES 6
Property Act. Hence, there is no occasion for attracting either the offence under Sections 406 or 420 IPC. The entire proceedings are hereby quashed.
All the Crl.M.Cs. are allowed accordingly.
Sd/-
P.SOMARAJAN
JUDGE
msp
Crl.MC.428/2021 AND CONNECTED CASES 7
APPENDIX OF Crl.MC 428/2021
PETITIONER'S/S ANNEXURES:6
ANNEXURE A1 COPY OF THE FIR DATED 5/1/2021. ANNEXURE A2 COPY OF THE COMPLAINT DATED 4/1/2021. ANNEXURE A3 COPY OF THE NON- BINDING TERM SHEET DATED MAY 10, 2019. ANNEXURE A4(COLLY) COPY OF THE E-MAILS SENT BY MSIL DURING JUNE-OCTOBER 2019. ANNEXURE A5 COPY OF COMMUNICATION DATED JANUARY 16,2020 FROM THE RESPONDENT NO. 2 ANNEXURE A6 COPY OF COMMUNICATION DATED JANUARY 21, 2020 SENT ON BEHALF OF MSIL. ANNEXURE A7 COPY OF THE LEGAL NOTICE ISSUED BY THE RESPONDENT NO.2. ANNEXURE A8 COPY OF REPLY SENT ON BEHALF OF MSIL, DATED JULY 7, 2020. ANNEXURE A9 COPY OF LETTER DATED NOVEMBER 7, 2020 SENT BY THE RESPONDENT NO. 2. ANNEXURE A10 COPY OF REPLY SENT ON BEHALF OF MSIL DATED DECEMBER 2, 2020.
RESPONDENTS ANNEXURES:NIL
Crl.MC.428/2021 AND CONNECTED CASES 8
APPENDIX OF Crl.MC 550/2021
PETITIONER'S/S ANNEXURES:
| ANNEXURE | A1 | COPY OF THE FIR DATED 05.01.2021 NO.0006/21 |
|---|---|---|
| ANNEXURE | A2 | COPY OF THE COMPLAINT DATED 04.01.2021 OF R2 |
| ANNEXURE | A3 | COPY OF THE NON-BINDING TERM SHEET DATED MAY 10, 2019. |
| ANNEXURE | A4 (COLLY) | COPY OF THE E-MAILS SENT BY MSIL DURING JUNE - OCTOBER 2019. |
| ANNEXURE | A5 | TRUE COPY OF COMMUNICATION DATED JANUARY 16, 2020 FROM THE RESPONDENT NO.2. |
| ANNEXURE | A6 | COPY OF COMMUNICATION DATED JANUARY 21, 2020 SENT ON BEHALF OF MSIL. |
| ANNEXURE | A7 | COPY OF THE LEGAL NOTICE ISSUED BY THE RESPONDENT NO.2 DATED MAY 22, 2020. |
| ANNEXURE | A8 | COPY OF REPLY SENT ON BEHALF OF MSIL DATED JULY 7, 2020. |
| ANNEXURE | A9 | COPY OF LETTER DATED NOVEMBER 7, 2020 SENT BY THE RESPONDENT NO.2. |
| ANNEXURE | A10 | COPY OF REPLY SENT ON BEHALF OF MSIL DATED DECEMBER 2, 2020. |
RESPONDENTS ANNEXURES:NIL
Crl.MC.428/2021 AND CONNECTED CASES 9
APPENDIX OF Crl.MC 551/2021
PETITIONER'S/S ANNEXURES:
ANNEXURE A1 COPY OF FIR DATED 5/1/2021 FIR NO.0006/2021 ANNEXURE A2 COPY OF THE COMPLAINT DATED 4/1/2021 RESPONDENT NO.2 ANNEXURE A3 COPY OF THE NON-BINDING TERM SHEET DATED MAY 10,2019
ANNEXURE A4(COLLY) COPY OF THE E-MAILS SENT BY MSIL DURING JUNE -OCTOBER 2019 ANNEXURE A5 COPY OF EMAILS DATED SEPTEMBER 16,2019 AND SEPTEMBER 17,2019 BETWEEN THE PETITIONER AND OTHER OFFICIALS OF MSIL.
ANNEXURE A6 TRUE COPY OF COMMUNICATION DATED JANUARY 16,2020 FROM THE RESPONDENT NO.2
ANNEXURE A7 COPY OF COMMUNICATION DATED JANUARY 21,2020 SENT ON BEHALF OF MSIL
ANNEXURE A8 COPY OF THE LEGAL NOTICE ISUSED BY THE RESOPNDENT NO.2
ANNEXURE A9 COPY OF REPLY SENT ON BEHALF OF MSIL DATED JULY 7,2020 ANNEXURE A10 COPY OF LETTER DATED NOVEMBER 7,2020 SENT BY THE RESPONDENT NO.2 ANNEXURE A11 COPY OF REPLY SENT ON BEHALF OF MSIL DATED DECEMBER 2,2020.
RESPONDENTS ANNEXURES:NIL
Crl.MC.428/2021 AND CONNECTED CASES 10
APPENDIX OF Crl.MC 552/2021
PETITIONER'S/S ANNEXURES:
| ANNEXURE A1 | COPY OF THE FIR DATED 5.1.2021. |
|---|---|
| ANNEXURE A2 | COPY OF THE COMPLAINT DATED 04.01.2021. |
| ANNEXURE A3 | COPY OF THE NON-BINDING TERM SHEET DATED MAY 10, 2019. |
| ANNEXURE A4 (COLLY) | COPY OF THE E-MAILS SENT BY MSIL DURING JUNE - OCTOBER 2019. |
| ANNEXURE A5 | COPY OF EMAILS DATED SEPTEMBER 16, 2019 AND SEPTEMBER 17, 2019 BETWEEN THE PETITIONER AND OTHER OFFICIALS OF MSIL. |
| ANNEXURE A6 | TRUE COPY OF COMMUNICATION DATED JANUARY 16, 2020 FROM THE RESPONDENT NO.2. |
| ANNEXURE A7 | COPY OF COMMUNICATION DATED JANUARY 21, 2020 SENT ON BEHALF OF MSIL. |
| ANNEXURE A8 | COPY OF THE LEGAL NOTICE ISSUED BY THE RESPONDENT NO.2. |
| ANNEXURE A9 | COPY OF REPLY SENT ON BEHALF OF MSIL DATED JULY 7, 2020. |
| ANNEXURE A10 | COPY OF LETTER DATED NOVEMBER 7, 2020 SENT BY THE RESPONDENT NO.2. |
| ANNEXURE A11 | COPY OF REPLY SENT ON BEHALF OF MSIL DATED DECEMBER 2, 2020. |
RESPONDENTS ANNEXURES:NIL
P.A. TO JUDGE
//TRUE COPY//
2 issues framed by the court
whether the offence under Sections 406 and 420 IPC is attracted when the agreement lacks consideration and is not registered
whether lack of consideration and non-registration of an agreement prevents it from satisfying the elements of a valid contract and criminal offence
2 provisions across 2 enactments
MR. KENICHI AYUKAWA
STATE OF KERALA
KOYENCO AUTOS PVT LTD.
P. SOMARAJAN
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
