Principle
Res judicata—Applicability to criminal proceedings—Discussed.
[Paras 13 to 19]
Criminal Procedure Code, 1973
Section 482—Quashing of proceedings—Cheating case—FIR registered against the appellant-Managing Director of the company—Principle of res judicata—Applicability to proceedings—When Section 138 of the NI Act proceedings were pending between the parties, second respondent moved an application under Section 156(3) Cr.P.C. seeking registration of an FIR against appellant and company inter alia alleging that despite payment of amount involved in 07 dishonoured cheques, by way of separate demand drafts, the appellant again presented 11 cheques and fraudulently realised the amount from 04 out of 11 cheques thereby cheating second respondent—FIR came to be registered against appellant based upon the these allegations, however, company was not made an accused in this FIR—Company itself must be made an accused before its officers can be prosecuted on grounds of vicarious liability—Finding recorded by jurisdictional criminal court in Section 138 NI Act proceedings between parties would be binding to both parties in any subsequent proceedings involving the same issue—Second respondent cannot maintain a prosecution on the basis of allegations which were precisely his defence in the earlier proceedings wherein he was an accused—Business relationship between two companies—Cheques and demand drafts, as the case may be, were issued by one company to the other company and no payment was made by second respondent to appellant individually—Proceedings quashed as prayed for.
[Paras 12, 20 to 25]