Delhi Race Club (1940) Ltd. & Ors. Vs State of Uttar Pradesh & Anr. (Supreme Court of India)
The Supreme Court considered an appeal by Delhi Race Club (1940) Ltd. and others against the Allahabad High Court order dated 03.04.2024, which had rejected their application under Section 482 CrPC seeking quashing of the summoning order dated 28.02.2023 passed by the Additional Chief Judicial Magistrate, Khurja, Bulandshahar. The complaint alleged offences under Sections 406, 420 and 120B IPC concerning unpaid dues of Rs. 9,11,434 for horse feed, barley and oats supplied to the Delhi Race Club and the Delhi Horse Trainers Association.
The complainant stated that his firm had supplied horse feed to the Delhi Race Club since 1990 and that, from 1995, it was directed to raise invoices in the name of the Delhi Horse Trainers Association. Payments continued until 2017, after which Rs. 9,11,434 remained outstanding. The complainant alleged that officials of the Club and Association had acted in collusion, obtained the goods and subsequently avoided payment. The Magistrate conducted an inquiry under Section 202 CrPC, recorded statements of the complainant’s witnesses and, on 28.02.2023, issued process against the accused for an offence under Section 406 IPC.
The High Court declined to interfere under Section 482 CrPC, observing that the complaint and supporting material prima facie indicated mala fide conduct and that the Club and Association appeared not to be separate entities. The Supreme Court, however, found that the High Court’s approach suffered from non-application of mind. It observed that although the complaint alleged Sections 406, 420 and 120B IPC, the Magistrate had issued process only for criminal breach of trust under Section 406 IPC.
