Messrs WARID TELECOM (PVT.) LTD. vs THE STATE and 2 others
This criminal miscellaneous application was filed under section 561-A of the Code of Criminal Procedure 1898 challenging an order passed by the Judicial Magistrate accepting a police report recommending the disposal of an F.I.R. under C-Class. The core legal question involved whether criminal proceedings under sections 420 and 406 of the Pakistan Penal Code 1860 were maintainable in a service-related dispute involving the retention of a company-provided vehicle after termination of employment, where a civil dispute and pending litigation regarding the entitlement to purchase the vehicle existed. The court held that no case for criminal breach of trust or cheating was made out as the dispute was essentially of a civil nature, and consequently dismissed the application, upholding the magistrate's acceptance of the C-Class report. The key principle laid down is that criminal process cannot be utilized for the settlement of civil disputes arising out of employment contracts and retention of company property where a bona fide civil claim or practice regarding ownership exists.
- Whether criminal proceedings under sections 420 and 406 Pakistan Penal Code 1860 are maintainable in a dispute arising from the non-return of a company vehicle after termination of employment?
- Can the High Court interfere under section 561-A of the Code of Criminal Procedure 1898 with an order of a magistrate accepting a police report under C-Class in a matter involving a civil dispute?
- Does a dispute regarding the right to purchase a company vehicle on depreciated value upon termination of service constitute a criminal offence?
- Section 561-A, Code of Criminal Procedure 1898
- Section 420, Pakistan Penal Code 1860
- Section 406, Pakistan Penal Code 1860
ORDER
1. ' SALMAN HAMID, J.---Through this Criminal Miscellaneous Application under section 561-A, Criminal Procedure Code, 1898, Warid Telecom (Pvt.) Limited, (Petitioner) has challenged the Order dated 17- 10-2011, passed by VIth Judicial Magistrate, Karachi-East, (VI JM) in Crime No,217 of 2011 of Police Station Bahadurabad, lodged under sections 420 and 406 Pakistan Penal Code against respondent No,3. After investigation the I.O. Recommended disposal of F.I.R. Under C-Class.
2. ' Facts deducible from the file are that the respondent No,3 was employed with the petitioner and during his employment he was given an official car Honda Civic ARV-849 (Vehicle). After termination of his service contract on 27-1-2011 he was asked to return back the Vehicle which he did not return. Eight months after termination of service contract, petitioner lodged F.I.R. On or about 6-9-2011. The matter was investigated into and it was reported by the I/O that there seems to be a civil dispute relating to the return of Vehicle as according to respondent No,3 he, as per practice of respondent No,3(sic) was entitled to purchase the Vehicle on depreciated value upon termination of employment contract and that it was also agreed by the petitioners. It also came on record that a civil suit is pending adjudication in respect of the above Vehicle which fact however was disputed by the learned counsel for the petitioner.
3. ' Admittedly respondent No,3 was employed on contract and that his contract was terminated.
4. During employment he was using the Vehicle and as per practice of petitioner the respondent No,3 was entitled to purchase it (Vehicle) on depreciated value, for which offer was also made. Looking to this aspect of the matter the case under sections 420 and 406 Pakistan Penal Code was hardly made out. Report having been submitted by the I/O was rightly accepted by the Magistrate concerned whereby she disposed of the F.I.R. Under C-Class which required no interference of this Court. The Criminal Miscellaneous Application under the above facts and circumstances of the case, is not maintainable and is hereby dismissed.