Criminal and civil proceedings can proceed simultaneously in cheating cases if both cases are made out against the accused. I have a company who is working in casting of industrial foundry products. My company has contracted another company for the supply of specific casting tanks for cement factories. After receiving a huge contract that company is causing a delay in supply of product. Then my legal team sent a notice to comply with the terms of contract failing which heavy compensation shall be paid by you. When my team conducted an initial inquiry against the company then came to know that the company has never worked in casting. That company committed fraud and misrepresented just to obtain a contract. Can I initiate criminal and civil proceedings against that company?
Asked from: Uttar Pradesh
The facts of your case suggest that deception occurred at the very beginning of the contract. The company, having no experience in industrial casting, made false promises to obtain the contract. When deception or inducement is present from the outset or at the time of entering into a contract, it constitutes the offence of cheating.
You can initiate both civil and criminal proceedings against the company simultaneously. In Indian Oil Corporation vs. NEPC (2006), the Supreme Court held that a commercial transaction or contractual dispute, in addition to providing grounds for seeking remedies under civil law, may also involve a criminal offence.
Similarly, in Syed Askari Hadi vs. State (Delhi Administration) (2009) 5 SCC 528, the Supreme Court ruled that civil and criminal proceedings may run concurrently. A criminal court may take cognizance of the case upon being satisfied that a prima facie case exists.
Cheating is both a criminal offence and a civil wrong. You are entitled to initiate both types of proceedings simultaneously. While there is no bar to doing so, criminal proceedings tend to take precedence over civil proceedings. For more legal help please visit Kanoon India.
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