In Brief
The appellant, managing director of Ruchira Papers Ltd., was prosecuted for cheating (Section 420 IPC) based on cheques allegedly issued fraudulently. The underlying dispute concerned dishonoured cheques that had been settled in earlier proceedings between the two companies involved. The Supreme Court quashed the criminal proceedings on three grounds: (1) res judicata applies in criminal law—the present allegations were precisely the defence rejected in earlier concluded proceedings; (2) without the company being an accused, the managing director alone could not be prosecuted for company acts without specific personal allegations; and (3) the registration of multiple FIRs suggested the prosecution was motivated by personal vengeance rather than genuine legal remedy. The appeal was allowed and all criminal proceedings were quashed.
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