Supreme Court Quashes FIR in Fraud and Criminal Intimidation Case Due to Lack of Evidence and Delay

The Supreme Court of India recently delivered a significant judgment in the case of G.V. Adhimoolam & Ors. versus The Inspector of Police & Anr., where it quashed an FIR registered against the appellants due to lack of evidence, unexplained delay, and apparent misuse of criminal proceedings. The judgment, delivered by Justices Vikram Nath and Sandeep Mehta on April 4, 2025, highlights the importance of scrutinizing frivolous or vexatious criminal complaints, especially those involving civil disputes disguised as criminal cases.

The case revolved around allegations of cheating, criminal intimidation, and wrongful restraint against the appellants, who were accused of fraudulently inducing the complainant to invest in a car dealership business. The complainant, M. Senthil Kumar, alleged that he had transferred Rs. 1.5 crore to the appellants in 2013 based on promises of partnership in a Nissan car dealership. However, the partnership never materialized, and the complainant claimed he was cheated. Additionally, he accused the appellants of verbally abusing and threatening him during a confrontation in May 2019.

The Supreme Court carefully examined the facts and found several inconsistencies in the complainant’s allegations. The Court noted that the FIR was filed after an unexplained delay of six years, with no valid justification for the delay. The complainant had transferred the money to his elder brother’s firm, not directly to the appellants, and there was no evidence to suggest that the appellants had induced the complainant to invest in their business. The Court observed, “The gross delay of 6 years in filing the FIR in relation to the investment already made in the year 2013 is yet another important factor which convinces us that there was no bona fide cause behind lodging of the FIR.”

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The Court also dismissed the allegations of criminal intimidation and verbal abuse, noting that the incident occurred in the appellants’ house, where the complainant and his companions had gone uninvited. The Court remarked, “For the sake of arguments, even if we believe the above version of the complainant then also, clearly the incident dated 22nd May, 2019, took place in the house of the accused-appellants and thus even if some verbal exchanges took place in the heat of the moment, the same would not give rise to the offences as alleged by the complainant.”

The judgment emphasized the principles laid down in the case of Iqbal v. State of Uttar Pradesh, where the Supreme Court had cautioned against misuse of criminal proceedings for settling personal scores. The Court reiterated that while examining such cases, it is essential to look beyond the averments in the FIR and consider the overall circumstances, including delays and motives behind the complaint.

In its final observations, the Court concluded that the FIR was manifestly frivolous and vexatious, lodged with an ulterior motive to wreak vengeance. The Court stated, “Considered in light of the aforesaid judgment, we are of the view that the present one is also a case wherein the proceedings of the impugned FIR are manifestly frivolous and vexatious or instituted with the ulterior motive for wreaking vengeance.”

As a result, the Supreme Court allowed the appeals, quashed the FIR, and set aside the High Court’s order that had rejected the appellants’ plea for quashing the FIR. The judgment serves as a reminder of the judiciary’s role in preventing the misuse of criminal law and protecting individuals from baseless prosecutions.

Read also: https://judgmentlibrary.com/supreme-court-quashes-criminal-proceedings-against-police-officers-landmark-ruling-on-sanction-requirements/

Petitioner Name: G.V. Adhimoolam & Ors..
Respondent Name: The Inspector of Police & Anr..
Judgment By: Justice Vikram Nath, Justice Sandeep Mehta.
Place Of Incident: Namakkal District, Tamil Nadu.
Judgment Date: 04-04-2025.
Result: allowed.

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