Delhi HC Quashes Summoning Order Against Man in Cheating Case
Image Source: Hindustan Times
The Delhi High Court has set aside a trial court’s order summoning a man as an accused in a cheating case filed by M/s Indiabulls Securities Limited. Justice Mahajan, in a June 23 ruling, observed that the summoning order was passed without due application of mind and scrutiny of material on record.
The case stemmed from a complaint alleging that the man had dishonestly induced the company to open an account in his name and availed a margin trading facility to buy shares but failed to repay the dues. However, the man claimed that the allegations were absurd and the company had caused losses to him by selling his shares worth ₹7 crore without his instructions.
The high court noted that the magistrate had recorded satisfaction about the existence of a prima facie case without the application of mind. The allegations did not disclose an element of criminality, and continuation of the proceedings would amount to abuse of law.
The court also cautioned against misuse of criminal proceedings, saying they ought not to be used to wreak vengeance or harass the other side. The impugned order was deemed unreasonable, and the summons were arbitrarily issued against the petitioner.
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