Ram Rupai Balaji Ltd had filed a civil suit for damages and breach of contract against Danieli India in 2006 for not completing supplies of equipment and not commissioning the equipment in terms of their civil contract. Danieli had contended this had happened because Balaji had failed to pay over Rs 4 crore in the terms of the contract.
The court had refused to give any order of injunction against Danieli India. Ram Rupai Balaji then registered an FIR with the police against Danieli India and its directors for cheating and criminal breach of trust.
Danieli India had challenged the FIR in the high court and had sought its quashing. Counsel for Danieli had argued that frustrated litigants who had failed to get any relief through a hierarchy of civil courts should not be allowed to invoke criminal proceedings.
Justice SP Talukdar of the high court, quashing a magistrate's oder on the FIR, said the FIR does not disclose the commission of any offences by Danieli India or its directors.
Justice Talukdar said the evidence presented by Danieli to the court conclusively suggested that the criminal proceedings initiated by Balaji Group was manifestly actuated with mala fide and had been initiated maliciously with the ulterior motive of wreaking vengeance against Danieli India and its directors.
The civil suit stands filed by Ram Rupai Balaji stands.