NEW DELHI: In a significant ruling, the Supreme Court has ordered that the High Courts can’t quash the FIR when larger economic offences are manifest, even if there is a civil transaction history between parties.”Financial frauds need deeper scrutiny and cannot be brushed off as civil disputes. Dummy firms, suspected conspiracy etc. warranted probe,” said, a two-judge Bench of the apex court, led by Justice Bela M Trivedi and Justice Prasanna B Varale, in an order recently.The bench of the top court passed the judgement on hearing a case involving Dinesh Sharma against a company.Lawyer and Advocate on Record (AOR), Krishnamohan Menon, appearing for the appellant, Sharma, said this ruling, lays down the principle that-financial disputes involving manifest fraudulent intent or larger Economic Offense should not be dismissed as mere civil matters without proper investigation, even if there is civil/commercial transaction history between the parties.Setting aside the Rajasthan HC order, which quashed the FIR, against the company — Emgee Cables and Communication Ltd — the top court said, the peculiar facts and circumstances of the present case warrants thorough investigation as there was a huge amount involved.”It is true that there is a growing tendency of parties to rope in their counterparts to harass and extract monetary transaction. It is the duty of the Court to consider the facts of each case, in its proper perspective and then to arrive at the conclusion as to whether the case warrants investigation or the proceedings are required to be quashed. The peculiar facts and circumstances of the present case warrant a thorough investigation as there was a huge amount involved,” said the SC in its order.
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