Allahabad High Court Quashes Criminal Proceedings Against OAM Industries Executives

Application under Section 482 CrPC Maintained; Allegations of Defamation Deemed Malicious

In a significant ruling, the Allahabad High Court, Lucknow Bench, quashed the criminal proceedings against Shri Kamal Agrawal, Managing Director of OAM Industries (India) Pvt. Ltd., and Satya Prakash Tiwari, General Manager HR, under Section 482 of the Criminal Procedure Code (CrPC). The court found that the allegations of defamation against the executives, stemming from the use of the term "absconding" in a show cause notice, were made in good faith and did not constitute defamation under the Indian Penal Code (IPC).

The case was brought forward by Shadab Ahmad, a former employee of OAM Industries, who claimed that the term "absconding" used in a company notice defamed him. However, the court held that the term was used to describe unauthorized absence from duty and fell under the Seventh Exception to Section 499 IPC, which covers censure passed in good faith by a person having lawful authority over another.

The judgment also addressed the maintainability of a second application under Section 482 CrPC, following the withdrawal of the first application without a decision on merits. The court, referencing Supreme Court precedents, stated that a second application is permissible if there is a change in circumstances. The trial court's rejection of the discharge application on maintainability grounds constituted such a change.

Furthermore, the High Court condemned the filing of the criminal complaint as an abuse of the legal process, intended to settle personal scores. The court emphasized the serious nature of summoning an accused in a criminal case and underscored that criminal law should not be set into motion frivolously.

Bottom Line:

The second application under Section 482 Cr.P.C. is maintainable if the first application was withdrawn without being decided on merit and there is a change in circumstances. Allegations in a criminal complaint must prima facie constitute an offense; else, summoning of the accused is an abuse of the process of law.

Statutory provision(s): Section 482 CrPC, Section 500 IPC, Section 499 IPC

The ruling not only provides relief to the accused executives but also sets a precedent emphasizing the responsible use of criminal proceedings in employment disputes. The decision aligns with principles laid down in landmark cases like State of Haryana v. Bhajan Lal and Pepsi Foods Ltd. v. Judicial Magistrate, reinforcing that legal processes should not be misused for personal vendettas.

Shri Kamal Agrawal (M.D.) v. State of Uttar Pradesh, (Allahabad)(Lucknow) : Law Finder Doc Id # 2813732