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Case Update – The Supreme Court upholds Allahabad High Court Judgement quashing First Information Report against a large Power Generation Company – Reinforces appropriate channels for resolving civil disputes

The Supreme Court upholds Allahabad High Court Judgement quashing First Information Report against a large Power Generation Company – Reinforces the appropriate channels for resolving civil disputes

24.07.2024

SKV Law Offices successfully represented the employees of Tata Power Company Limited (“TPCL”) in Special Leave Petition (Cr) before Supreme Court (“Hon’ble Court”) against the Judgment passed by Allahabad High Court. The Issue at hand was the filing and legal sustenance of criminal proceedings instituted against the key managerial representatives of TPCL, stemming from a contractual dispute.

The Complainant had complained against key employees of TPCL, alleging offences committed under Section 406/420/467/468 of Indian Penal Code resulting in registration of First Information Report (“FIR”). Registration of FIR was challenged before Allahabad High Court (under 482 CrPC). The Court, while staying its operation, quashed the same vide judgement dated 15.05.2024.

Allahabad High Court observed that the essential pre-requisites for applicability of alleged offence had not been made out against the TPCL employee – because the allegations fails to substantiate the intention and execution of offences through the FIR and pendency of civil disputes need to be factored in for its decision making.

Further, the High Court construed the FIR as an attempt to turn a purely contractual dispute into a criminal case. While doing so, the court relied upon Vijay Kumar Ghai V. State of West Bengal (2022) 7 SCC 124, being the leading judicial pronouncement on the issue of maintainability of criminal disputes wherein parties arising from the same facts are contesting under civil law (and having remedies thereof).

Upholding the Allahabad High Court’s Judgement, the Supreme Court in favour of employees of TPCL, chose not to interfere with the quashing of the FIR.

For more information, you can click here to read SKV Law Office’s case update dated 18.05.2024 about the Allahabad High Court Judgement. A copy of the Allahabad High Court judgement is linked to the case update as well.

The Respondents were represented by SKV Law Offices’ team lead by Mr. Shri Venkatesh (Managing Partner), Mr. Shryeshth Ramesh Sharma (Partner), Mr. Akash Lamba (Senior Associate) and Mr. Harsh Vardhan (Associate).