Authority: High Court at Calcutta, Criminal Revisional Jurisdiction

Order Date: 07-07-2026

Case Overview

  • Petitioners: Gaurav Upadhyay & Anr. (along with other family members) filed CRR 453 of 2020 against the State of West Bengal & Anr.
  • The revisional application sought quashing of proceeding G.R. Case No. 2678 of 2017, which stemmed from Jamuria Police Station Case No. 328 of 2017 under Section 420 of the Indian Penal Code.
  • The dispute originated from a claim of Rs 11,91,603 by Kazi Zainal Absar of OTIF India for supply of explosives and accessories at the Tara East‑West Coal Mine, allegedly owed by Eastern Minerals Trading Agency (EMTA).
  • Bengal EMTA Coal Mines Ltd (BECML) is a joint‑venture of West Bengal Power Development Corporation Ltd, Durgapur Projects Ltd and EMTA Coal Ltd; its board included the Secretary of the Department of Power, nominees of the three partners, a District Magistrate, an MLA and others.
  • Petitioners asserted they were not directors of BECML and had no active control over its affairs; they were directors only of EMTA Coal Ltd (the erstwhile Eastern Minerals and Trading Agency).
  • The Supreme Court, in Manohar Lal Sharma v. (Writ Petition (CRL) 120 of 2012), cancelled 204 coal blocks on 25‑08‑2014 and 24‑09‑2014, including the Tara East‑West mine.
  • Following the cancellation, the Government of India enacted the Coal Mines (Special Provisions) Act, 2015 and the corresponding Rules, forcing BECML to cease commercial activity and resulting in a complete stoppage of revenue.
  • The State’s charge sheet (No. 198/2019 dated 30‑06‑2019) alleged cheating under Section 420 IPC against the petitioners, claiming they absconded and failed to pay the dues.
  • The Court observed that the matter was essentially civil: there were part payments, the non‑payment stemmed from the cancellation of the coal blocks, and there was no deception or mens rea required for an offence under Section 420.
  • Vicarious liability was rejected because the petitioners were not directors of BECML; liability, if any, would rest with the directors of the joint‑venture.
  • The Court highlighted the significant delay in lodging the FIR (complaint filed on 11‑11‑2017 for a 2015 claim) and the multiplicity of parallel proceedings (Jamuria PS Cases 301/2017 to 331/2017 and 406/2019 to 445/2019), deeming the prosecution an abuse of process.
  • Prior similar orders were cited, including the quashing of G.R. Case No. 1742 of 2022 (Sections 406, 417, 420, 120B) involving EMTA Coal Ltd and its directors.

Final Outcome

  • The High Court quashed the criminal proceeding under Section 420 IPC against the petitioners, holding that no criminal offence was established and that continuation would constitute a miscarriage of justice.
  • The order directed that an urgent certified copy of the judgment be supplied to the parties.

Topics: Criminal Law, Coal Mining