In Brief
This appeal concerns a criminal prosecution arising from a commercial dispute over share investment. SMC Global Securities invested Rs 2.5 crore in Priknit Apparels and were allotted equity shares, but an expected IPO did not materialize. After a Delhi magistrate dismissed the complaint as purely civil in nature, the complainant filed an identical complaint in Kolkata, creating a "jurisdictional improvement" to establish local jurisdiction. The Supreme Court held that the Kolkata complaint represented forum shopping and abuse of process. The Court concluded the allegations disclosed no criminal offence of cheating or breach of trust, as there was no fraudulent intention at inception—merely a failure to fulfil contractual promises, a civil matter. The appeal was allowed and all criminal proceedings were quashed.
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