This judgment of the Supreme Court addresses several appeals related to a single First Information Report (FIR No. 227 of 2017) filed at Pasi Ghat Police Station in East Siang, Arunachal Pradesh. The FIR involves multiple parties from Rajasthan and Arunachal Pradesh in a complex case concerning financial transactions purportedly for a land deal in Jaipur, Rajasthan.

Key Points of the Case:

  1. Background of the FIR: The FIR was lodged by Mr. Anil Agarwal, attorney for M/s Shiv Bhandar, alleging that the accused had committed fraud in a deal involving a ₹1 crore transaction meant for purchasing land. This amount was transferred in four transactions to various parties, which the complainant claimed was for purchasing specific plots in Jaipur. However, when the complainant sought to finalize the land transfer, the accused allegedly refused to honor the agreement, leading to the FIR’s filing.
  2. High Court Proceedings:
  • The Gauhati High Court dismissed a petition to quash the FIR, leading to an appeal to the Supreme Court.
  • The Rajasthan High Court, however, quashed the FIR, finding that no part of the alleged offense occurred in Arunachal Pradesh, thus questioning the territorial jurisdiction of the FIR.
  1. Supreme Court Findings and Judgment:
  • The Supreme Court determined the matter to be civil in nature, involving a commercial dispute over financial transactions and property transfer.
  • The Court noted discrepancies and a lack of clear evidence to categorize the transactions as either loans or payments for property, suggesting the matter was best settled as a civil dispute.
  • The Court also highlighted jurisdictional issues, pointing out that most transactional and relational elements occurred in Rajasthan, not Arunachal Pradesh.
  • Consequently, the Supreme Court quashed the FIR and all related proceedings, questioning why the state of Arunachal Pradesh pursued the matter when the complainant did not challenge the Rajasthan High Court’s quashing of the proceedings.

Overall, the Supreme Court emphasized the civil nature of the dispute and criticized the use of criminal proceedings in what appeared to be a commercial dispute, ultimately leading to the quashing of all criminal proceedings associated with FIR No. 227 of 2017.

THE STATE OF
ARUNACHAL PRADESH …APPELLANT(S)
VERSUS
KAMAL AGARWAL
& ORS. ETC. …RESPONDENT(S)

By aor.sanjivnarang@gmail.com

Sanjiv Narang Adv. is an Advocate on Record in the Supreme Court of India. His qualifications include an LLB from University of Delhi and a Masters degree in Personnel Management from Panjab University,Chandigarh.In his more than 3 decades of experience, he has practiced law at the District, High Court and Supreme Court levels.He also has more than a decade of experience in the field of Management. He is the author of two books namely Laws for Women in India and Innovation, Why What and How.