Kolkata, Jan. 12 -- The Calcutta High Court has refused to quash criminal proceedings linked to a commercial dispute between two shipping firms, holding that a dispute over the residence of the accused cannot be decided at the quashing stage and must be examined during trial.
Dismissing a revision plea by directors and senior officials of Nepal Shipping Lines Private Limited, Justice Uday Kumar ruled that factual issues-particularly relating to the accused's place of residence and alleged procedural lapses-cannot be adjudicated in proceedings invoking the court's inherent powers.
The case arises from the termination of an agency agreement between Nepal Shipping Lines and River Edge Shipping Pvt. Ltd. After the termination, both sides initiated legal proceedings. The accused directors sought quashing of the criminal complaint pending before a Kolkata magistrate, arguing that it was retaliatory and stemmed from a purely commercial dispute.
A key contention was that the mandatory inquiry required when accused persons reside outside the magistrate's jurisdiction had not been conducted. The petitioners claimed that local Kolkata addresses were shown despite their actual residence being outside the state and abroad.
Rejecting the plea, the High Court held that when a local address is disclosed in the complaint, the magistrate cannot be faulted for proceeding. Whether the address is correct or not, the court observed, is a mixed question of fact and law that cannot be resolved without evidence, and deciding it at the quashing stage would amount to a prohibited mini-trial.
The court reiterated that a transaction may have both civil and criminal dimensions, and whether the allegations disclose dishonest intent or merely a contractual breach must be tested at trial.
It also clarified that while directors cannot be held vicariously liable in the absence of the company being arraigned, they may still face prosecution for specific criminal acts alleged against them.
The revision petition was dismissed, with the trial court directed to proceed with the complaint expeditiously.
Published by HT Digital Content Services with permission from Millennium Post.