Magistrate's Summoning Order Faulted for Non-Compliance with Section 202 Cr.PC: Supreme Court

In a significant ruling, the Supreme Court of India has quashed the criminal complaint against Shiv Jatia and others in relation to fraudulent LPG cylinder distribution and breach of trust. Justices Abhay S. Oka and Ujjal Bhuyan, presiding over the matter, emphatically stated that the dispute was essentially of a civil nature and not criminal.

The apex court delved into the procedural aspects of issuing a summoning order under Section 202 of the Criminal Procedure Code (Cr.PC), particularly when the accused reside outside the territorial jurisdiction of the Magistrate. The Court noted the mandatory requirements under this section, emphasizing that the summoning order against the appellants was passed without adherence to these mandatory procedures.

The case revolved around a criminal complaint filed against Shiv Jatia and others, alleging offenses under various sections of the IPC and the Essential Commodities Act. The appellants had earlier approached the Punjab and Haryana High Court seeking to quash the complaint and summoning order, which was dismissed by the High Court. The Supreme Court was tasked with determining whether the summoning of the appellants was procedurally correct and whether the dispute was criminal or civil in nature.

The Supreme Court scrutinized the evidence and the sequence of events leading to the summoning of the appellants. Justice Oka observed, "The entire dispute is of a civil nature arising out of a commercial transaction." The Court found that the Magistrate had issued the summoning order without waiting for a police report, as mandated by Section 202 of the Cr.PC, when the accused were residing outside its jurisdiction.

The Court also addressed the nature of the dispute, stating that the allegations and evidence presented pointed towards a commercial transaction rather than a criminal offense. The involvement of the appellants in the alleged criminal acts was not substantiated adequately.

Concluding that the continuation of the criminal complaint against Shiv Jatia and others would constitute an abuse of the process of law, the Supreme Court quashed the complaint against them. However, the case was allowed to proceed against other accused parties.

Date of Decision: 23rd February 2024

Shiv Jatia VS Gian Chand Malick & Ors.