Quashing of FIR on forged corporate records failed where allegations disclosed prima facie cognizable offences and double jeopardy did not apply.

At the quashing stage, the High Court held that it would not test disputed facts or the truth of allegations if the FIR and complaint, read as a whole, disclosed cognizable offences. Allegations of fabrication of resignation papers, board resolutions, annual returns and other corporate records, followed by their use before statutory and judicial forums, made out a prima facie case of cheating, forgery, use of forged documents and falsification of accounts, so quashing was refused. The Court also held that parallel civil or company disputes, alleged mala fides and abuse of process did not bar prosecution on these facts. The plea of double jeopardy failed because the earlier matter involved distinct facts and offences and had not ended in conviction or acquittal.

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Issues: (i) Whether the FIR and complaint disclosed a prima facie case for offences of cheating, forgery, use of forged documents and falsification of accounts so as to justify quashing under inherent jurisdiction; (ii) Whether the proceedings were liable to be quashed on the grounds that the dispute was essentially civil, actuated by mala fides, or otherwise amounted to abuse of process; (iii) Whether the plea of double jeopardy barred the present FIR.

Issue (i): Whether the FIR and complaint disclosed a prima facie case for offences of cheating, forgery, use of forged documents and falsification of accounts so as to justify quashing under inherent jurisdiction.

Analysis: The allegations specifically asserted fabrication of resignation papers, board resolutions, annual returns, share-related documents, and other corporate records, followed by their use before statutory and judicial forums to project control over the company. At the stage of quashing, the Court was required to see only whether the complaint and FIR, taken at face value, disclosed cognizable offences. Applying the settled principles governing inherent powers, the Court held that disputed questions of fact and the truthfulness of the allegations could not be examined as if in trial.

Conclusion: A prima facie case was made out and the FIR could not be quashed on this ground.

Issue (ii): Whether the proceedings were liable to be quashed on the grounds that the dispute was essentially civil, actuated by mala fides, or otherwise amounted to abuse of process.

Analysis: The Court held that the existence of connected civil or company proceedings did not exclude criminal liability where the allegations disclosed dishonest fabrication and use of forged documents. The plea of mala fides was treated as part of the defence and not something that could displace the FIR at the threshold. The Court also found that the petitioners had repeatedly obtained interim protection and had not cooperated with investigation, which reinforced the view that the petition was being used to stall the inquiry rather than to vindicate a genuine legal grievance.

Conclusion: The plea of civil nature, mala fides and abuse of process failed and did not justify quashing.

Issue (iii): Whether the plea of double jeopardy barred the present FIR.

Analysis: The Court held that the constitutional and statutory bar applies only where the earlier and later proceedings relate to the same offence and there has been conviction, acquittal, or other statutory bar satisfying the ingredients of the plea. The Dehradun matter and the present FIR were found to involve distinct factual matrices and different offences, and the earlier proceedings had not resulted in any conviction or acquittal that could trigger the bar. Mere overlap of some facts did not establish identity of offences.

Conclusion: The plea of double jeopardy was misconceived and rejected.

Final Conclusion: The petitions seeking quashing of the FIR were held to be without merit, the interim protection was vacated, and costs were imposed for abuse of the court process.

Ratio Decidendi: At the stage of quashing, the Court will not examine disputed facts or the reliability of the allegations if the FIR and complaint, read as a whole, disclose cognizable offences; connected civil disputes or unproven allegations of mala fides do not bar criminal proceedings, and double jeopardy applies only where the later prosecution is for the same offence after a prior conviction or acquittal.

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