The Delhi High Court has expressed strong displeasure against the trial courts for casually issuing summons to an accused without providing an appropriate reason.
Quashing summons against a man in a Rs 98 lakh cheating case, the single-judge Bench of Justice Amit Mahajan said continuation of criminal proceedings against the man would amount to abuse of law.
Calling the issuance of summons as a serious issue, Justice Mahajan observed on June 23 that the summoning order must show due application of mind and examination of facts of the case as well as the evidence on record.
Merely taking note of the facts and recording prima facie satisfaction, without giving any appropriate reason for the same was insufficient, noted the single-judge Bench.
The petitioner moved the High Court against a trial court verdict of September 28, 2013, which summoned him as an accused.
The case stemmed from a complaint filed by a company, M/S Indiabulls Securities Limited, which traded stocks, under Section 420 (cheating) of the Indian Penal Code.
The company alleged that the man dishonestly induced it to open an account in his name and availed the facility of margin trading, where investors borrowed funds from their broker to increase their purchasing power and potentially amplify their returns, to buy shares but failed to repay the same despite multiple margin calls.
The man submitted before the High Court that the allegations levelled against him were absurd and improbable in nature and the order was passed mechanically without appreciating the ingredients of the offence.
He said the company caused losses to him by selling his shares worth Rs seven crore without his express instructions.
The company argued that the plea was frivolous and not maintainable since it was filed seven years after passing of the order.
The High Court observed that the summons were issued without appreciating or scrutinising the material and the company sought to give a criminal cloak to civil proceedings for recovery of dues.
Terming the trial court verdict as unreasonable, the High Court said the summons were arbitrarily issued against the petitioner since the allegations did not disclose an element of criminality.
The single-judge Bench said that although the magistrate court recorded its satisfaction about the existence of prima facie case in the impugned order, however, on a bare perusal of the complaint as well as pre-summoning evidence, the said observation seemed to be without any application of mind.
The High Court further observed that criminal proceedings should not be misused to wreak vengeance or harass the other side.
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