Section 156(3) CrPC relief is discretionary where the complainant already has the evidence and the dispute is mainly contractual.

Section 156(3) CrPC relief is discretionary and may be declined where the complaint arises mainly from contractual or civil dealings, the complainant already possesses the relevant material, and police assistance is not necessary for collecting evidence. The Magistrate must be satisfied that a cognizable offence is disclosed and that investigation is required; if the dispute can proceed on the complaint record under Chapter XV, refusal to direct FIR registration is justified. The Delhi High Court upheld the refusal to order investigation, noting that the existence of civil or arbitral proceedings did not by itself preclude criminal process, but no exceptional circumstance warranted police investigation on the facts.

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Issues: Whether interference was warranted with the refusal to direct registration of FIR and investigation under Section 156(3) of the Code of Criminal Procedure, 1973, where the dispute arose out of contractual/business transactions and the complainant already possessed the relevant documents.

Analysis: The remedy under Section 156(3) is discretionary and is not to be invoked mechanically. The Magistrate must be satisfied that the allegations disclose a cognizable offence and that police assistance is necessary because the evidence is not within the complainant's reach. Where the dispute is primarily contractual or civil in character, the complainant has the necessary documents, and the matter can proceed under the complaint procedure, the Magistrate may decline to direct FIR registration and instead proceed under Chapter XV. The existence of civil or arbitral proceedings does not by itself bar criminal process, but on the facts the record showed that the relevant material was already available with the complainant, and no exceptional circumstance justified police investigation or the exercise of inherent jurisdiction.

Conclusion: The refusal to order investigation under Section 156(3) was upheld; the petition failed.

Final Conclusion: The judgment affirms that police investigation is not automatic on a complaint alleging cheating where the complainant can adduce the material itself and the dispute substantially arises from contractual dealings.

Ratio Decidendi: An order under Section 156(3) may be refused where the complainant is already in possession of the relevant evidence and police investigation is not for collection of material, particularly in a predominantly contractual dispute.

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