Authority: Supreme Court of India
Order Date: 03 September 2026
Case Overview
- Parties: Appellant – Venugopal Jhawar & Anr., proprietor of Deva Institute of Healthcare and Research Pvt. Ltd., Varanasi; Respondent – State of Uttar Pradesh & Anr.; the second respondent (former employee of the institute) is the complainant.
- Origin: Petition for Special Leave to Appeal (Crl.) No.10351/2026 arising from impugned judgment dated 29‑04‑2026 of the Allahabad High Court (A482 No. 7686/2020).
- Background: The former employee alleged that, after his resignation, he was summoned to the appellant’s chamber and forced to disclose bank‑account details of his household. He was allegedly asked to deposit Rs 2,50,000 and later Rs 10,00,000 into the bank accounts of his family members during the demonetisation period. He filed complaint No. 235/2017 before the Additional Chief Judicial Magistrate‑III, Varanasi, which led to summons against six accused.
- Procedural History: The accused challenged the magistrate’s order; the Sessions Judge remanded the matter; the ACJM issued an order on 22‑02‑2019 (Annexure P8). The High Court, noting inconsistencies and lack of medical evidence, declined to interfere, allowing the criminal proceedings to continue.
- Supreme Court Findings: The Court observed that the allegations lack factual basis, constitute a false narrative, and the complainant has not contested his termination. The demand for deposits during demonetisation would attract scrutiny and is implausible. The complaint is deemed mala fide and an abuse of the legal process.
Final Outcome
- The order dated 22‑02‑2019 passed by the ACJM, Varanasi, is set aside.
- Complaint No. 235/2017 is quashed; no further proceedings shall be taken.
- The appeal is allowed.
- Any pending applications, if any, are disposed of.
Topics: Criminal Law, Abuse of Process, Demonetisation