Order 18

Order Details: COPY OF ORDER
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Ct. Cases 370/2023 LALLAN SHAH Vs. SUBHASH GARG AND
ORS /2023 (Prashad Nagar)
08.08.2026.
Present : Ms. Kajal Bhatia, Ld. Counsel for the complainant (through VC).
ORDER ON APPLICATION U/S 156(3) CR.P.C.
1) The complainant has moved an application u/s 156(3) Cr.P.C. for
registration of FIR against accused for commission of offence u/s
420/467/468/471/477A IPC.
2) Brief facts of the application as taken out from complaint are as follows:-
That the complainant is the Law abiding citizen. That the accused persons
named as 1. SUBHASH GARG PROP. OF M/S S.C. GARG & ASSOCIATES,
CHARTERED ACCOUNTANTS OFF: 49, EKJOT APARTMENT, ROAD NO. 44,
PITAMPURA, NEW DELHI-110034, ALSO AT: 831 RORI BAZAR, NEAR CO-OP
BANK, SIRSA-125055 HAVING ICAI MEMBERSHIP NO. 085615, 2. RAJENDRA
PAL GARG PROP. OF M/S RP GARG & ASSOCIATES, CHARTERED
ACCOUNTANTS OFF: 49, EKJOT APARTMENT, ROAD NO. 44, PITAMPURA,
NEW DELHI-110034 ALSO AT: OFF: BQ 6 SHALIMAR BAGH-110088, 3. M/S
SUNLOG CREDITS PRIVATE LIMITED, OFF: BQ 6 SHALIMAR BAGH-110088, in
connivance with other accused persons, have committed the offences of criminal breach
of trust, fraud, cheating, forgery, inducement and criminal intimidation and various other
substantive offences with the present complainant. That the accused no. 1 was Chartered
Accountant of the complainant in all the firms and companies established between 2004
till 2022. That the complainant is engaged in the business of sale and purchase of scrap
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and recycling the scarped batteries. That the complainant and his son are uneducated and
totally a layman person who are totally unaware about the laws and for which they're
totally dependent upon accused no. 1 and its partner accused no. 2. That the complainant
blindly trusted the accused no. 1 & 2 as they are managing the day to day financial
affairs of the complainant since beginning and everything was controlled and supervised
by the accused persons. That all the accounts of the complainant and his firms including
the operations of the Bank Accounts and net banking are managed by accused no. 1; as
the complainant was totally unaware about the operations of the net banking and for
operating the email IDs for filing the returns and other compliances, etc. That all the
bank accounts of the complainant was linked to the personal mobile number and email
ID of accused no. 1 and by which accused no. 1 used to do all transactions on his own
without taking the consent of the complainant and whenever the complainant used to ask
accused no. 1 that why his mobile number is linked to the accounts, to which accused
number always gives the same answer, "TU KABADI HAI JYADA ANGREZ BANNE
KI KOSISH MAT KAR". That the accused no. 1 & 2 used to call the complainant at
their office to take signatures on the various forms, stamp papers, blank cheques, etc. by
saying that they'll form new firms in the name of complainant and his son and the
accused persons never gave the reason for the formation of the new firms and
companies. That the complainant is into the business of scrap so he used to make and
collect the payment in cash in daily operations of the business and after 4-5 years
complainant's business expanded then the complainant asked the accused no. 1 & 2 that
what he'll do with cash in hand amount to which accused no. 1 & 2 told the complainant
that you're not allowed to deposit cash in lakhs in your accounts, so the accused no. 1 &
2 told the complainant to always handover the cash in hand amount to them and they'll
get deposited through different bank entries. That thereafter the complainant used to give
his hard-earned money in cash to the accused no. 1 & 2 and the accused no. 1 & 2
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always used to show the bank entries that they've deposited the amount from their own
relatives and family members' accounts and this thing continued for many years till
2022. That the complainant always trusted the accused no. 1 & 2 as the accused persons
always stated that they'll solve all the problems in their life. That the accused no. 1 & 2
always keep the personal IDs including Aadhar Card, PAN Card, Voter ID Card, DSC,
etc. of the complainant and his family members. That the accused no. 1 & 2 used to get
the signature of complainant and his father on a number of blank cheques and the blank
stamp papers on the pretext that it is required for the legal compliances. That in the year
2020 a raid was conducted by GST Dept. at the premises of the complainant's business
and it was found by the GST Dept. that some of the bank entries were bogus in the
complainant's business bank accounts and the complainant was shocked as he never did
any illegal act which was against the law as he was a ground level worker who is totally
unaware about the law and for which he is totally dependent upon accused no. 1 & 2.
That the complainant was got arrested and he was informed from his son that accused
no. 1 & 2 directed to admit all the transactions and accused persons took Rs. 15 Lakhs
for the bail of the complainant from the complainant's son and also directed not to
disclose the name of accused no. 1 & 2 before GST officers as well as in the court. That
thereafter when the complainant enquired about his arrest from the accused no. 1 & 2,
they replied that this is a normal thing in today's time as you're growing day by day so
taxation dept. is just harassing you, leave it on us, we'll tackle each and every situation.
That the complainant and his son after the arrest started doubting accused no. 1 & 2 and
they decided to change the phone number of the accused no. 1 linked to the bank
accounts of the complainant and they also hired one new CA and directed to do audit of
all the firms in the name of complainant and his son. That after 6-7 months the
complainant was shocked to know that the accused no. 1 & 2 formed a new company in
which complainant's son is named as the Director without their consent and approvals
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and all the documentations with regard to the formation of the company are forged and
fabricated. That the complainant was shocked to know that the accused no. 1 & 2 had
also applied and got the credit cards in the name of complainant and his father and that
credit card was linked with the accused and the CA contact number and complainant got
to know when their CIBIL was getting effected. That the complainant got to know
number of financial fraudulent activities done by the accused no. 1 & 2; thereafter
complainant changed his CA and it was found that complainant got arrested only
because of accused no. 1 & 2 as the cash received from the complainant was deposited
through different bank accounts which belongs to relatives and family members of the
accused no. 1 & 2 and moreover the accused no. 1 & 2 did the number of bank entries of
their own and their relatives' benefits. That when the complainant confronted the above-
mentioned issue to the accused no. 1 & 2, the accused no. 1 & 2 started threatening the
complainant and his son that don't dare to enter our premises again and also threatened
them that they'll ruin all their businesses as they've number of signed blank cheques and
signed stamp papers as well as the other confidential data of the complainant's
businesses. That the complainant got to know that by using their signature on blank
papers and stamp papers, accused no. 1 & 2 in connivance with one Mr. Anil Kumar
Gupta changed the partnership percentage ratio by fraudulent means and the same was
revoked. That after this the complainant appointed new CA for all his firms and asked
him to do the complete inspection and audit of the accounts. That the complainant and
his CA found number of irregularities on the part of accused no. 1 & 2 that they've
created a fake loan liabilities on the complainant firms and businesses with the
connivance of accused no. 3 as they never knew about the accused no. 3 and they asked
for any loan but the fact is that they've taken the cash amount for that entries and the
same was done on the directions and instructions of the accused no. 1 & 2. That the
complainant after knowing this reached the office of accused no. 1 & 2, scolded them
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that you people have ruined my life and also my businesses and said he is going to
complain regarding this to the police, to which they said don't dare to do that otherwise
they'll put him behind the bars in false and fictitious cases under Negotiable Instruments
Act by using the signed blank cheques but the complainant straightaway said that he'll
be going to take the actions against the accused no. 1, 2 & 3 and one partner named as
Mr. Anil Kumar Gupta. That on 14.02.2023 complainant's son made a complaint to SHO
PS Prasad Nagar against Partner Mr. Anil Kumar Gupta and the accused no. 1. That the
accused persons after knowing this started playing the dirty games by pressurizing the
complainant to withdraw the complaint otherwise they'll file false and fictitious cases to
wind up all the complainant's businesses. That the accused no. 3 in connivance with
accused no. 1 & 2 is now creating the hindrances for the smooth functioning of the
complainant's business by misusing the blank signed cheques and one of the cheque was
already misused by the accused persons just to create the undue liability. That the
accused is also threatening the complainant and his son that he'll ruin this company by
filing false and fictitious cases against his father as he is having the blank signed
cheques and stamp papers as well as companies' letter heads. That the complainant is
having the apprehension accused no. 1, 2 & 3 may dishonestly and fraudulently misuse
and produce the abovementioned signed blank cheques, signed blank stamp papers and
other documents before various Govt. authorities with a criminal intention to induce and
intimidate the present complainant. That the complainant is having the apprehension
accused no. 1, 2 & 3 may dishonestly and fraudulently misuse and produce the
abovementioned signed blank cheques, signed blank stamp papers and other documents
with the malafide intention to create false claims before the different competent
authorities and thus the accused persons deliberately committed forgery, intending that
the aforementioned documents, as forged, shall be used for the purpose of cheating the
present complainant
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3) Action taken report from concerned police station was called for. It is
reported by PSI Ankit, SI Rahul Mehta that multiple litigations are pending b/w the
parties and no cognizable offence is made out.
4) Heard the submissions of Ld. counsel for complainant. Record perused. I
have gone through the observations of Ld. NCLT in order dt. 07.05.2025 as well.
5) Hon’ble High Court of Delhi in M/s Skipper Beverages P. Ltd. Vs State
2002 Crl. L. J. NOC 333 (Delhi) has illustrated that the powers under Section 156 (3) Cr.
PC can be exercised by a Magistrate. It has been observed that :
“Section 156 empowers Magistrate to direct police to register case
and initiate investigation but his power had to be exercised
judiciously not in mechanical manner. Those cases, where
allegations are not very serious and complainant himself in
possession of evidence to prove allegation, there should be no need
to pass order under Section 156 (3) Cr. PC. But, cases where
Magistrate is of view that nature of collect, and produce evidence
before court, and interest of justice demand that police should step
into to help complainant, police assistance can be taken. Thus,
where allegation of theft of cheque and forgoing of typing out
certain portion therein, could be proved by oral evidence and by
summoning original cheque from banker and leading required
evidence respectively, then there was no such evidence which
complainant could be unable to collect on his own. As such,
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declining request to issue direction to police under Section 156 (3)
Cr. PC would be justified.”
6) In another case titled Gulab Chand Upadhyay Vs State of UP and others,
2002 Cri. L. J. 2807 Hon’ble Allahabad High Court, in para 24 observed that where
accused with his name and address are known to the complainant, the witness of the
evidence are also known to him and it is not a case where any other material evidence is
required to be collected and can be preserved, then it is not a case where any
‘investigation was required by the police of launching a successful prosecution’.
7) In the present case, the identity of the proposed accused is duly established
and known to the complainant. However, all the evidence is not in possession of
complainant. The matter requires swift investigation, custodial interrogation of accused
and scientific investigation ins also required to be done to verify the signatures on
various documents. Further, all the bank accounts, ledger statements etc., have to be
verified and forensic audit is required to reach at the truth of the matter. From the
information given by the complainant, cognizable offence of cheating, forgery for
purpose of cheating, using as a forged document. Thus, registration of FIR is mandatory
in the present matter.
8) Accordingly, considering the case law and facts and circumstances, the
application U/s 156(3) Cr.P.C of the complainant is allowed.
9) Let a court notice be issued to SHO PS PRASAD NAGAR to register an
FIR and appoint a responsible official to conduct investigation in the present matter.
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10) List for compliance report on 31.08.2026.
(Karanbir Singh)
JMFC-02, Central District
Tis Hazari Courts/08.08.2026.
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