Gujarat High Court Criticizes Police For Filing FIRs In Civil Disputes Despite Circular Issued By DGP

The Gujarat High Court has deprecated the practice of filing FIRs in civil disputes giving it a criminal colour, observing that despite a circular issued by the State’s Director General of Police for not registering FIRs in civil disputes such FIRs are registered for reasons best known to the police.

The court was hearing a plea moved by the petitioner seeking quashing of an FIR.

The complainant/the respondent no. 2 is in business of manufacturing and trading of grey cloth. He came in contact with with the petitioner through accused no.1. The complainant started supplying grey cloth material to accused no.1 towards which he used to make payment on time. It is alleged that during 10.07.2023 till 16.01.2024, the complainant through his three different firms supplied goods to accused no.1 to the tune of Rs.1,42,67,882/-, however, till date said amount was not paid to the complainant.

Therefore, FIR was lodged against the petitioner under Sections 409(Criminal breach of trust by public servant, or by banker, merchant or agent), 420(Cheating and dishonestly inducing delivery of property), 504, 506(2) (criminal intimidation) and 120(B) (criminal conspiracy) IPC.

Justice JC Doshi referred to Section 409 and 420 and said that as per the FIR at no point of time, it appeared that no offence is made out and it becomes amply clear that instead of filing a money recovery suit, the respondent No.2 has filed the FIR.

“Thus, FIR is filed giving color of criminality. It is significant to note that first informant feels duped, he could have filed civil suit for recovery of outstanding amount. What could be noticed that police authorities have misused powers and added section 409 and 420 of IPC for the purpose of recovery of outstanding amount which alleged to have been due in commercial transaction.

This Court has time and again deprecated approach of police authorities for filing such kind of FIR whereby civil dispute has been converted into criminal proceedings. Even highest police officer of State in the rank of DGP has issued circular to police personnel for not registering FIR where civil dispute are given color of criminal proceedings. But for the reason best known to the police officers concerned without following those circulars, FIR of such kind are registered,” the court said.

Referring to Supreme Court’s decisions the court said that the FIR was a “complete misuse of power”.

It thus quashed the FIR.