1 of 15 CC 271 of 2017
IN THE COURT OF THE XIV ADDL. CHIEF METROPOLITAN MAGISTRATE
:: AT HYDERABAD ::
PRESENT:SRI T.KANHYA LAL,
XIV ADDL. CHIEF METROPOLITAN MAGISTRATE,
HYDERABAD.
Thursday, the 03rd day of November, 2022
C.C. No.271 / 2017
Between :
The State of Telangana, represented by the Station House Officer, P.S. Panjagutta, Hyderabad …… Complainant
And
Bipin Jain, S/o Sunil Jain, Age: 36 Years, Occ: Business, R/o Flat No.101, Shreya Mansion Apartments, H.no.6-3-1099/1/4 & 5, Somajiguda, Raj Bhavan Road, Hyderabad. …… Accused
This case is coming on before me for final hearing in the presence of learned Assistant Public Prosecutor for the Complainant and of Sri Vishal Kedia, Advocate for the accused, and after perusing the case records and upon hearing the arguments on both sides, this Court made the following:-
:: J U D G M E N T ::
1.Brief facts of the prosecution case are as follows:-
That on 07.12.2016 at Somajiguda, Hyderabad the Accused no.1 has been running a Shri Karma Jewels, H.No.6-3-680, Flat No.301, Sri
Venkatarama Apartments, Somajiguda, Hyderabad and A1 used to purchase the diamonds and diamond studs gold jewellery from various firms/shops and incurred huge loss in the said business and hatched a plan to induce other businessman who gives jewellery on credit basis and in the month of
October, 2016 the accused no.1 placed an order with Sri Rakesh Surana of
Divine Jewells, Somajiguda, Hyderabad and need diamonds of 2 carats on which the said Rakesh Surana delivered 2.02 carat diamonds worth about 2 of 15 CC 271 of 2017
Rs.9.99 Lakhs and after receiving the same, A1 avoided payment to the complainant firm and fled away from Hyderabad and went to Kochi and met with Accused no.2 of Aravind Jewelleries and sold him total 4 solitaries of 1 carat each to said A2 and returned back to Hyderabad and spent the money lavishly for your wrongful gains. On the report of Lw1/S.Roop Kishore Varma, the police registered a case against the accused in Crime No.883/2016 u/s 406 and 420 of IPC.
2.The Sub Inspector of Police, PS. Panjagutta, Hyderabad filed charge sheet against accused for the offences punishable under Secs.406 and 420 of
IPC.
3.Cognizance was taken for the offence under Secs.406 and 420 of IPC against the accused.
4.On appearance of the accused copies of documents relied by the prosecution were furnished to him as required under Sec.207 Cr.P.C.
5.Accused is examined under Sec.239 Cr.P.C and Charges for the offences under Secs.406 and 420 of IPC are framed, read over and explained to him in his vernacular language. He denied the same, pleaded not guilty and claimed to be tried.
6.The prosecution had examined the five witnesses i.e., Pw1 to Pw5 and got marked ExP1 to ExP10. The learned APP had given up the evidence of
Lw5.
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7.After closure of the above prosecution evidence, the accused was examined under section 313 Cr.P.C., with reference to the incriminating circumstances appearing against him in the evidence of prosecution witnesses. The accused denied the incriminating material put to him and he did not propose to examine any defence witness.
8.Heard both sides.
9.Now the point that arises for determination is:- “Whether the prosecution could able to
prove the guilt of the accused for the
offences punishable under sections 406
and 420 of IPC beyond all reasonable
doubt or not ?”
POINT:
10.It is the case of the prosecution that the accused ordered Diamond of 2.02 carats worth of Rs. 9.99 lakhs with a false promise to pay the amount with in two to three days and fled away with diamond and sold the same to
Accused no2 and spent the amount for his levishment.
11.To prove the offence the prosecution cited eight witnesses but got examined only five witnesses that is Pw1 to Pw5. Pw1 was the employee of defacto complainant, who gave the complaint / Exibit P1. Pw2 was the defacto complainant. Pw3 was the punch for confession and seizure punchanama/Exibit P5 and P6. Pw4 was the investingation officer and pw5 was the investingation officer in another Crime no.228 /2016 of P.S.
Charminar who arrested the accused in his case and while recording his 4 of 15 CC 271 of 2017 confession in ExP10 where the accused also admitted his guit relaing to this case.
12.Pw1 who was the employee of Pw2 and working in Divine jewellers for ten years , deposed that on 18-10-2016 Pw2 told him to deliver 2.2 carrot two diamonds to accused worth of Rs. 9.99 lakhs. He further deposed that for ten days they tried to contact A1 through cell but it was switched off. Then the owner sent them to the acccused’s home and the home was locked.
Therefore he went to the police station and lodge the report. He further said that along with the complaint he submitted Tax invoice, certificate of registration of firm. Authorization letter. In cross examination he said he saw the accused when went to his home for deliver of diamonds. He admitted that he did not have personal knowledge about the order given by the accused . He also admitted that he did not file any document at the time of filing complaint. He also admitted that he did not mentioned in his complaint regarding authorization letter issued by Pw2. He admitted that he did not file
GST returns. He denied the suggestion that accused no 1 never received any
Diamond that is why GST returns was not filed. He denied that there was a delay of nearly one month for lodging the complaint.
13.Pw2, who the owner of the shop depose that pw1 , was his employee and they deals in loose diamonds and diamond jewelleries in the name and style of ‘Divine Jewellers‘ they supplies the diamonds to rest of the hyderabad . On 18-10-2016. the Bipin Jain (accused no.1) enquired for loose diamonds and they negotiated on the same day and on 22-10-2016 they supplied the loose diamonds in his office at flat no 301, venkatramana
Apartment, somajuguda vide invoice no 201, dated 22-10-2016 after delivery 5 of 15 CC 271 of 2017 the accused promised to pay the amount within one week and after one week when they went to the office of the accused, they came to know that the accused fled away with all the stock and cheated many jewellery shop in hyderabad. There was a paper clipping also about the accused. On 7-12-2016 they presented a complaint in P.S. Panjagutta.
14.In cross, he said he did not file partnership deed of the complainant firm. He said he and one Rajkumar surana are the partners of Divine jewellers. He said he was the managing partner of the company as such there is no need for him to obtain authorisation from other partners. He admitted that he did not file any document to show he was the managing partner of the company. He also admitted that he didnot file any document that the accused order diamonds from them. He also admitted that he did not file any acknowlement that the accused received diamond from them. But added that they got the seal of the office of the accused on Invoice Exibit P2 .
He admitted that he knew the accused and his brother and dealt with them several times and accused made payments to all the previous transactions .
He admitted that Exibis P2 ‘s severals columns were blank. He did not know whether the signature on Exibits p2 was of accused or not.
15.Pw3 deposed that on 4-1-2017 at 7.15 am when he was proceeding near NIMS, the SI of police asked him to act as punch witness and he gave his consent and the accused confessed before him about the commission of this offence along with another offence of ps charminar and took the police to
Karma jewellers and there the police seized the one Hard disk and two receipt books. After that police took his signature on the punchamana. In the cross he said he was resident of raidurgam and he does not resides in the limits of punjagutta. He did not have any prior acquitance with the SI of 6 of 15 CC 271 of 2017 police . He further said he did not received any summons from the police but received a phone call. He denied that he was a stock witness to the police .
He failed to tell the address of Karma jewellers even though as per his evidence he went to the office of accused no.1 (Karma Jewellers).
16.Pw4, who was the investigating officer deposed that on 7-12-2016 at 9:30pm, he received the complaint of pw1 and registered a case and issued
FIR/Exibit p7 and took up the investigation and proceeded to the shop and found it locked . He did not find any information of accused. Later he receive information that the accused was arrested by LW7 in crime no:228/2016 of PS charminar and obtain the case paper and produce the accused by PT warrant on 21-12-2016. he got the custody of the accused for two days in which the accused confessed the commission of the offence in the presence of mediators. Later he made efforts to arrest Accused no 2 but could not . Then he filed the chargesheet against Accused no 1 only by showing Accused no2 as absconding.
17.In cross examination he wrongly stated that the complaint was filed by
Karma jewellers and by Bipin jain owner of Divine jeweller. He also admitted that he did not investigate whether the Divine jewellers is a partnership concerned or proprietaty concerned. He also admitted that the complainant did not submit him any documents to proof that diamonds were handed over to the accused. He also admitted that the complainant did not hand over any authorisation given to pw1 by Divine jewellers. He admitted that the confession of the accused recorded by LW7 did not contain any crime number . He also admitted that he did not visited Kerala. He said he did not get any information about Accused no.2 (Ravi proprietor of Arvind Jewellers). He denied that there is no such person. He admitted that the pw1 didnot state 7 of 15 CC 271 of 2017 the reason for the delay in his complaint or 161 statement. He admitted that he did not collect the stock register and GST of the complainant company. He admitted that he did not investigate from whom the complainant precured the material.
18.Pw5 was the investigating officer in crime no 228/2016 of ps charminar and who arrested the accused. He deposed that on 11-11-2016 he received a complaint from one Mukesh Ranka and register a case against accused and apprehended the accused and recorded the confession statement of the accused in the presence of LW3 and LW4 where the accused confessed the present case . In cross examination he admitted that he did not mentioned the crime no in the said punchanama. He denied that the punch were the stock witness of the police.
Appreciation of evidence:-
19.The case of the prosecution is based on the initial confession of the accused in another case that is crime 228/2016 before the pw5. But the prosecution did not examine any one of the panch witness in Crime
No.228/2016 before whom the accused alleged to have confessed the said offence. The said punchama was marked as Exibit P-10. After perusing the said punchanama it is abserved that it did not contain the crime number. As per the said panchanama the accused confessed that he committed the similar offences relating to the complainant’s shop and on the strength of the same the accused was arrested on P.T.Warrant in the present case. Later the
Pw4 took the police custody of the accused for two days and recorded another confession of the accused in which the accused confessed that he received diamonds from the complainant company and fled away with the 8 of 15 CC 271 of 2017 same and sold the same to the accused no.2 in Kerala. But police failed to recover any property from the possession of accused no.2. Even the police also failed to arrest A2 in this case.
20.The defence counsel argued that Pw1 without any authority had filed the complaint before the police, therefore basing on the sole ground the prosecution case has to be set aside. The defence has relied on the judgment cited in “1997 (1) ALD (Crl) 745 AP Between Satish and Company Vs
S.R.Traders and Others”. But the fact of the said case are different from the present case. That case was filed on behalf of a company u/s 138 of N.I.
Act in which the Hon’ble High Court discussed the Section 142 i.e., a complaint by a company and against a company. The present case is filed u/s 420 and 406 of IPC and they are cognizable offences as per schedule (1) of the Cr PC. Therefore, it is necessary to look into “Section 154 of Cr PC
which says about institution of a criminal case relating to cognizable
offence. Every information relating to the commission of
cognizable offence, if given orally to an officer in charge of a police
station, shall be reduced to writing by him or under his direction,
and be read over to the information; and every such information, whether given in writing or reduced to writing as aforesaid, shall be signed by the person giving it, and the substance thereof shall be entered in a book to be kept by such officer in such form as the State Government may prescribe in this behalf.
21.After perusing the Section 154, it used the word “informant” and there is no rule that every such information should be given by the defacto complainant. Even the third person can give an information to the police to 9 of 15 CC 271 of 2017 set the criminal law into motion. In this case, Pw1 was the employee of Pw2, therefore he was competent to lodge a complaint before the police. Pw1 was the employee of the defacto complainant and as per the Section 154 of Cr PC he was competent to initiate the action against the accused. But Pw1 did not state the reason for the delay for lodging FIR. As per the evidence of Pw1 after delivery the diamonds to the accused and waiting for 10 days, they came to know that the accused fled away. That means they came to know on 04-11-2016 but ExP1 complaint was lodged on 07-12-2016. Even at the time of registration FIR, the reaons for the delay is not mentioned. How could the defacto complainant commit delay of so many days when the alleged property was worth of Rs.9.99 Lakhs. The prosecution has not explained even at the time of trial, the reason for the delay. ExP1 does not contain the date and the column of the date was left blank. As per the Pw1, the diamond was handed over to the accused over phone order dated 18-10-2016. There is no such call record. Pw1 is an interested witness being employee of Pw2.
Therefore, the evidence of Pw1 has to be evaluated under the light of the independent or cogent evidence.
22.Pw2, who was the Managing Partner of the Divine jewellers also failed to prove that he handed over these diamonds to the accused. He admitted that he did not file any document to show accused placed order from them.
According to Pw2 he gave the call record to the police, in which the accused put his order for the diamond but no such call record has been produced
before this court. That means, there is no such call records and only to cover
the gap, the Pw2 stated about call record. Pw2 admitted that he did not file any acknowledgment that the accused received the diamond but he relied on seal of the office of the accused on invoice/ExP2. There are no such 10 of 15 CC 271 of 2017 documents except ExP2 which shows accused received the diamonds from the Pw2. ExP2/Invoice which contains the seal of the office of the accused, but why it does not contain the signature of the accused when it pertaining to diamond worth of Rs.9.99 Lakhs. The defence argued that ExP2 is created one. Before this court no such seal was admitted into evidence even though seized which also create a doubt. There is possibility that ExP2 was created and the seal was put by someone else but not by accused as the seal was seized in the absence of A1 from his office.
23.Pw3, who was the panch for confession of the accused deposed that the accused confessed about the alleged offence but as per his admission he was not local to the PS Panjagutta and did not have any acqaintance with the
Investigating Officer. Eventhough, he received a phone call from the
Investigating officer to act as mediator. He admitted that he did not receive any summons to act as mediator. He failed to tell the address of office of A1.
Therefore his evidence is also not trustworthy.
24.Pw4 who was the Investigating Officer and after going through his evidence, it is observed that his entire investigation was incomplete investigation as he failed to recover the diamonds under the strength of confession panchanama, even though, he got police custody of the accused.
He failed to ascertain about A2 who was alleged to be the purchaser of the diamond from A1. He never visited the place of A2 i.e., Kerala. His first and foremost duty was to receive material evidence to show that A1 received diamonds from Pw2 but in cross examination he admitted that complainant did not submit any document in proof of handing over of diamond to the accused. His entire investigation is based on the confession of the accused.
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But admittedly no property has been recovered from the accused and the said confession is hit by section 25 and 26 of Indian Evidence Act, 1872.
Section 25 of Indian Evidence Act says that no confession made to a police officer shall be proved as against a person accused of any offence.
Section 26 of Indian Evidence Act says that Confession by accused while in custody of police not to be proved against him:- No confession made by any person whilst he is in the custody of the police Officer, unless it be made in the immediate presence of a Magistrate, shall be proved as against such person.
25.Pw5 who was the Investigating Officer in Crime No.228/2016 and who recorded the initial confession of the accused before Lw3 Mohd Irfan and Lw4
Mohd Wajid admitted in cross examination that he did not mention the crime number in the said panchanama. In this case, Lw3 and Lw4 were not examined and non mentioning of Crime number by Pw5 is also against the prosecution. The evidence of Pw5 is not of much important as the accused never confessed before him about this alleged offence.
26.That means, the confession before the police officer or in the custody of the police officer cannot be proved against the accused. The entire case of the prosecution is relying on the confession of the accused but as per the above said sections, the confession before the police has no value before the court of law except under section 27 of Indian Evidence Act, which says.......
Section 27: How much of information received from accused may be proved:- Provided that, when any fact is deposed to as discovered in consequence of information received from a person accused of any offence in the custody of a police officer, so much of such information, whether it 12 of 15 CC 271 of 2017 amounts to a confession or not, as relates distinctly to the fact thereby discovered, may be proved.
According to Section 27, if the content of the confession of the accused lead to a discovery of fact, then the prosecution is permitted to prove the said fact even though, it was mentioned in the custody of the police. In this case, it was alleged that the accused confessed that he fled away with the diamond and sold the said diamond to Accused no.2 by name Mahaveer Jain and spent the amount for his lavishment. But the prosecution failed to prove that the accused indeed went to Kerala alongwith the diamond and sold the same to A2 and spent the said amount for his lavishment. Therefore the prosecution could not able to prove that the accused received the diamonds from Pw2 and defrauded its payment.
27.It is admitted by the defacto complainant/Pw2 that he and accused were indulge in may transactions and the accused paid amount for the previous transactions. The defence took the plea that by taking the advantage of Crime no.228 of 2016 of PS Charminar, accused was falsely implicated for collecting the interest of previous transaction.
28.As per prosecution it was a business transaction and accused received the diamond as per their business. If it is so, then the prosecution should prove that the accused had intention at the begining of the transaction. Mere breach of contract or failure to pay due amount in business does not amount to cheating.
29.If the accused would have fled away with the diamond then it can be said that he had the intention of cheating and at the inception of the contract but here the prosecution has failed to prove the main ingredients of cheating 13 of 15 CC 271 of 2017 or criminal breach of trust that the accused had received diamond from defacto complainant and fled away. Even the contents of confession also not proved as police failed to arrest so called A2 who purchased the diamond.
There is no independant witnesses in this case nor any substantial material to prove accused received diamonds from the defacto complainant and sold the same to A2 except ExP2. But the prosecution had failed to prove ExP2 beyond doubt.
30.The learned counsel for the accused has filed the following citations:- (1) Rekha Jain Vs The State of Karnataka & Anr in 2022 LiveLaw (SC) 468, (2) Vijay Kumar Ghai & Ors Vs The State of West Bengal &
Others in Crl Appeal No.463 of 2022, (3) Anil Mahajan Vs Bhor industries Ltd and Another (2005) 10
Supreme Court Cases 228, (4) Inder Mohan Goswami and Another Vs State of Uttaranchal and Others in (2007) 12 Supreme Court Cases 1 and (5) Adorn Jewellers, Lambe Hanuman Road, Surat and Others Vs
State of Andhra Pradesh and another ALD (Crl) 2019(2).
....To point out the necessary ingredients of Section 420 and 406 of IPC.
But under the present circumstances it is not proved beyond the doubt that the accused no.1 had received diamonds from the Pw2. Therefore, there is no purpose to discuss the principle laid down in the above said citations.
31.The Investigation Officer seized one hard disk and receipt book from the Office of the Accused no.1. But no such material are produced by the prosecution at the time of trial. Even no document from the Office or accused no.1 relating to receipt of the diamond by the accused and no call record has 14 of 15 CC 271 of 2017 been produced at the time of trial. As per Section 114 of Indian Evidence
Act, the court may presume under illustration (g) that the evidence
which could be and is not produced would, if produced, be
unfavourable to the person who withholds it. Therefore, it is infered that the prosecution intentionally did not produce the above said material as it will be unfavourable to his case.
32.The evidence of Pw1 to 5 are not reliable as there are material omissions in their evidence as discussed above and when there are no independent witnesses. Therefore, the prosecution could not able to prove the alleged offence beyond all reasonable doubt.
33.In the result the accused is acquitted u/s 248(1) Cr PC for the offence
Under Section 406 and 420 of IPC and bail bonds, if any shall be cancelled after expiry of appeal time. The case property seized by the police i.e., one computer hard disk and two receipt books shall be disposed off, after expiry of appeal time.
Typed to my dictation by the Stenographer, corrected and pronounced by me in the open court on this the 03 rd day of November, 2022.
XII ADDL. CHIEF METROPOLITAN MAGISTRATE
HYDERABAD
APPENDIX OF EVIDENCE
WITNESSES EXAMINED
FOR PROSECUTIONFOR DEFENCE
Pw1. S.Roop Kishore Varma (Complainant)Nil
Pw2 Rakesh Surana (Witness and victim)
Pw3 B.Sridhar (Panch witness)
Pw4 K.Gurunath (Investigating Officer)
Pw5 V.Eshwar Rao (Investigating Officer) 15 of 15 CC 271 of 2017
EXHIBITS MARKED
Ex.P1 Complaint
Ex.P2 Original tax invoice
Ex.P3 Mee Seva copy of certificate of Registration of firms
Ex.P4 Authorization letter
Ex.P5 Two signatures on confession statement of the accused
Ex.P6 Signature on seizure report
Ex.P7 First Information Report
Ex.P8 Confession statement of the accused
Ex.P9 Seizure report
ExP10 Attested copy of Confession panchanama.
XII ADDL. CHIEF METROPOLITAN MAGISTRATE,
HYDERABAD