Order 12

Order Details: COPY OF JUDICIAL PROCEEDINGS
Pdf Text: Ashok Vihar Traders Association Vs. Santee Nayyar & Ors.
Page No. 1 of 9
CT CASE NO. 20478/2024
ASHOK VIHAR TRADERS ASSOCIATION VS. SANJEEV
NAYYAR & ORS.
PS ASHOK VIHAR
25.06.2026
Present: Ld. Counsel for complainant through VC.
ORDER ON APPLICATION UNDER SECTION 156(3) Cr.P.C.
1. An application under Section 156(3) Cr.P.C. was filed
by the complainant for issuance of directions to SHO for
registration of FIR.
2. It is the case of the complainant that on 13.04.2022, the
complainant No.2 has been appointed as the President of the Ashok
Vihar Traders Association (herein after referred to as "the
Association") and since then, he has been diligently discharging his
duties and relentlessly working for the welfare and betterment of
the traders of the Ashok Vihar, Deep Central Market. The Ashok
Vihar Traders Association was constituted for the welfare and
protection of the traders of Ashok Vihar, Deep Central Market. It
was further stated that the complainant No.2 along with other office
bearers took charge of the association as president on the
13.04.2022 after duly election of the Association. The Accused
No.1 was the president of the Association in the year 2016 and
thereafter in 2017, the Accused No.1 in connivance with the
-- 1 of 9 --
Ashok Vihar Traders Association Vs. Santee Nayyar & Ors.
Page No. 2 of 9
Accused No.2, the Accused No.1 hand over the post of the
president to the Accused No.2 without any election being taken
place and no general body meeting took place for handing over the
charge, even no resolution or circular has been passed by any of the
office bearer in respect to the shuffling of management in the said
Association. The Accused No.2 was the former president of the
Association and had been holding the office since 2017 to the year
2022, and the Accused No.1 has been holding the post of the
treasurer of the said Association and has been discharging his duties
as a cashier of the Association since 2017 till today. It was then
stated that upon taking the charge by the complainant no. 2 as the
President of the Association from the accused no.2, after coming in
the charge of the post of President of the said Association, the
complainant no.2 and the others office bearers of the Association
came to know about various mismanagement done by the accused
persons during their tenure as President and Treasurer. After taking
charge of the said Association by the complainants and the others
office bearers were authorized to be the legal signatory to manage
the Association's office work along with check channelizing of the
fund of the Association but the accused no.1 did not hand over the
charge of the Association to the present office bearer i.e., the
complainant No.2. The complainant no.2 made various requests to
the accused no.1 and 2 to hand over the charge to the complainant
No.2 and the others office bearers but despite of handing over the
charge, the accused No. 1 has been using his post and discharging
unauthorized duty as treasurer of the said Association and doing
misappropriate the funds of the Association. Subsequent to
assuming the presidency in 2022, the complainants and other office
bearers diligently undertook a comprehensive review of all
-- 2 of 9 --
Ashok Vihar Traders Association Vs. Santee Nayyar & Ors.
Page No. 3 of 9
pertinent documents and bank accounts managed by the
Association. Through this meticulous examination, it was revealed
amounting to Rs. 30,74,138/- were executed between 2015 and till
date. They also made several withdrawals of around Rs.5,11,000/-
without any unauthorized withdrawal transaction justification
behind withdrawing of such huge amount from the account of the
said Association. The amount withdrawn from the bank in 2022 &
2023 was without the association's knowledge and there is no
General Body meeting held in the presence of association president
and General Secretary as per Memorandum of Association rules
before any cash withdrawal or any payment to make because it is
mandatory that a meeting of all members have to be called and Gen.
Secretary have to pass bill and only after that treasure can withdraw
the amount. But there was no such resolution, circular or
notification of the said Association in respect to any work or project
dealt for the said Association or market area. The said Accused
failed to provide any resolution, circular or notification in respect to
any work or project in the market area for which they withdrew
amount for the said period. There is no expenditure, proposal
meeting or any renovation work held in the market at that time of
period as per records. It was further stated that due to concern of the
apparent misappropriation of fund during the tenure of the accused
no.1 and 2 in managing the Association's finances, the complainants
and other office bearers have made many verbal requests and, in the
end, sent legal notice to them. But the accused persons have failed
to furnish any satisfactory and legally tenable any justification for
their unrecorded transactions from the account of the said
Association wherein unlawful loss has been caused to the said
Association and the members of the trader community with the
-- 3 of 9 --
Ashok Vihar Traders Association Vs. Santee Nayyar & Ors.
Page No. 4 of 9
shopkeeper who gave their hard and earned money to the said
Association for the development of the Ashok Vihar, Deep Central
Market. It was further stated that over the period of last 2 years the
complainants had made several requests and in the month of
August, sent legal notice to both the accused no.1 and 2 to provide
an audited balance sheets and bank statement along with bills and
proof from the year 2015 to till date. But both the Accused persons
have consistently failed to provide the requested documents on one
pretext or another. Accused No.1 and 2 have disregarded the
request of the complainants to change the details of legal signatories
with the bank and have neglected to allocated funds for the
development or operations of the Association in order to cause
unlawful loss to the members and other members for the smooth
operation and management of the Association, as well as for the
advancement and wellbeing of its traders of Ashok Vihar, Deep
Central Market. It was stated that the negligent/ unlawful approach
and inexplicable conduct of both the accused persons, in failing to
update the details of the signatories and refusing to transfer control
of the Association's Bank account had forced the members of the
Association to utilize personal funds totaling around Rs.2,00,000/-
for the development and welfare of the traders. Subsequent to the
accused no.1 assuming the presidency of the Association in the year
2017, the administration and operation of the Associations' bank
accounts were delegated to three individuals: the accused No.2
(president), the accused No. 1 (treasurer), and the late Basant
Kumar Mehta (Gen. Secretary). Even subsequent to the demise of
Shri Basant Kumar Mehta, they both failed to update the details of
the legal signatories with the bank. Furthermore, following the
conclusion of their tenure in the management of the Association,
-- 4 of 9 --
Ashok Vihar Traders Association Vs. Santee Nayyar & Ors.
Page No. 5 of 9
despite repeated request, they neglected to update the details of the
Complainants and other office bearers as the signatories with the
bank with sole motive and intention of misappropriating the funds.
The Complainants filed a written complaint vide DD No.69A dated
14.06.2024 to the concern SHO, Police Station Ashok Vihar (North
West) against the Accused persons for the misappropriation of fund
of the said Association even the Complainants revealed the fact
before the concerned SHO that the accused persons are using funds
of the said Association for their personal benefit and they are not
providing any single piece of paper to the Complainant and the
others office bearers for clarification with respect to the transaction
done in the account of the said Association. The conduct of the
accused persons seems to be siphoning of money from the account
of the said Association to other works which are not come in the
prerogative of the said Association memorandum. It was further
alleged that after getting the information with respect to the
complaint filed before the concern SHO, Police Station-Ashok
Vihar (North West) against the accused persons, the accused
persons in a jiffy way manage a frivolous balance sheet of the said
Association for the past 5 years from 2017-2022. Thereafter, the
Complainants filed a complaint before the DCP, Police Station -
Ashok Vihar (North West), Delhi and there is no such other option
left to the Complainants to come before this Hon'ble Court. After
walk through the balance sheet provided by the Accused persons, it
revealed that the balance sheet is not audited by any CA and they
did not produce any single piece of bill in respect to the transaction
done from the account of the said Association. The said balance
sheet is bogus in nature itself as there is no such dates have been
mentioned in it for the transaction of any single work. Even more,
-- 5 of 9 --
Ashok Vihar Traders Association Vs. Santee Nayyar & Ors.
Page No. 6 of 9
the balance sheet is not authentic in its nature which was duly
signed by the accused No. 1 and 2 circulated to the others office
bearers and members of the said Association just to show that there
was clear and true transaction done by the accused persons. After
getting the balance sheet from the accused persons, the complainant
no.2 rushed to the concern SHO, Police Station Ashok Vihar (North
West) against the Accused persons but the concern SHO, Police
Station -Ashok Vihar (North West) did not pay any heed towards
fraud and siphoning of money by the Accused persons. Thereafter,
the complainant filed a complaint dated 17.09.2024 vide DD
No-9552 before the concerned DCP for not taking cognizance by
the concern SHO of Police Station - Ashok Vihar. However, till
date, no meaningful steps have been taken.
3. In the present case, the status report was called, which
was duly filed. The said report is considered. In the report, it is
submitted that enquiry is conducted in respect of the complaint
received in PS Ashok Vihar, Delhi. The reply was sought from the
complainant in respect of the documents to which it was found that
the alleged transaction that had happened was within the knowledge
of the bank officials and the bank officials had permitted the
authorized signatory to withdraw the said amount from the bank
account. As per the complaint and enquiry, no cognizable offence
was found. Even, one civil litigation is also pending before Hon'ble
Court of Civil Judge, Rohini Courts, Delhi vide CS SCJ-1689/2023
and the said civil matter is pending for 05.02.2025. The
complainants also sent the legal notice for the alleged act of the
alleged accused persons in respect of the said transaction of
withdrawal of the amount. It was further submitted that no further
-- 6 of 9 --
Ashok Vihar Traders Association Vs. Santee Nayyar & Ors.
Page No. 7 of 9
police assistance in the complaint filed by the complainant is
required. All the alleged documents which are stated to be the
evidence is in the possession and control of the complainant and the
complainant could present the said documents while pursing the
complaint case against the alleged persons. It was finally concluded
that the matter appears to be predominantly civil in nature. Hence,
no cognizable offence is made out.
4. Arguments were heard. Record perused and
considered.
5. In the case Subhkaran Luharuka and Another Vs. State
(2010), Hon’ble High Court of Delhi laid down the guidelines for
giving directions to police to register case wherein it was held that
it
is not necessary that in every case, where a complaint has been filed
U/s. 200 CrPC, the magistrate should direct police to investigate the
crime, merely because an application has also been filed U/s. 156(3)
CrPC. Court has to form an opinion as to whether police
investigation in collection of evidence is necessary or not. It is to
be considered as to whether evidence is in the possession of
complainant or can be produced by the witnesses on being
summoned by the court, at the instance of complainant. Further,
before passing any other on an application U/s. 156 (3) CrPC,
magistrate must call for status report from the police and then form
an opinion as to whether complaint discloses commission of
cognizable offence or not. He should then satisfy himself about the
need of investigation by the police. In addition thereto, he should
also satisfy himself with regard to necessity to direct police to
investigate the matter for collection of evidence, which is neither in
-- 7 of 9 --
Ashok Vihar Traders Association Vs. Santee Nayyar & Ors.
Page No. 8 of 9
the possession of complainant nor can be produced by the witnesses
on being summoned by the court at the instance of complainant and
the matter is such which calls for investigation by a State agency.
6. It is well settled that the Magistrate is not bound to
direct registration of FIR in every case. The power is discretionary
and is to be exercised where:
 cognizable offence is clearly disclosed, and
 police investigation is necessary for collection of evidence
beyond the reach of the complainant.
7. In this case, complainant has not stated as to what
evidence is needed through investigation. Further, the identity of
accused is also known to the complainant. Accordingly, no
assistance of investigating agency is required and the facts and
circumstances of the case as well as identity of the accused is within
the knowledge of the complainant.
8. Keeping in mind the aforesaid facts and circumstances;
it does not appear that investigation by police is necessary as the
complainant is in possession of necessary material/evidence.
Accordingly, application U/s. 175 (3) BNSS filed by the
complainant is dismissed. However, complainant is at liberty to
lead PSE in support of his complaint under Section 223 BNSS. If
court is of the opinion that any inquiry or investigation is necessary,
then it can postpone the issue of process against the accused and
inquire itself or direct an investigation to be made by police officer
or appropriate person U/s. 225 BNSS.
-- 8 of 9 --
Ashok Vihar Traders Association Vs. Santee Nayyar & Ors.
Page No. 9 of 9
9. The matter be now listed for PSE on 15.11.2026.
Complainant is directed to furnish list of witnesses within 7 days
from now and to file PF for summoning them as per rules.
(UPASANA SATIJA)
CJM (North-West)
Rohini Courts, Delhi
25.06.2026
-- 9 of 9 --