In Brief
The appellants, Managing Director and Director of a company (M/s SPML Infra Limited), were charged with cheating and criminal conspiracy for allegedly supplying sub-standard turbines to the government for a hydroelectric project. The High Court had refused to quash the proceedings. The Supreme Court allowed the appeal and quashed the FIR and charge-sheet against the appellants, holding that: (1) no prima facie case of cheating exists as there were no allegations of fraudulent intent from the contract's inception; (2) the company was the principal accused but not arrayed as a party, and specific allegations of vicarious liability were absent; and (3) the project's successful operation and timely replacement of defective components contradicted criminal intent. The long 13-year delay between charge-sheet filing and service of summons constituted harassment.
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