Authority: Supreme Court of India
Order Date: 27 October 2026
Case Overview
- Petitioner: M/s. Gauri Buildcon; Respondents: State of Telangana and a second respondent (House of Electronics).
- FIR No.153/2023 dated 03‑05‑2023 was lodged by the Economic Offences Wing (EOW) Team‑VI, CCS, DD Hyderabad alleging diversion of funds.
- The chargesheet (Annexure P12) alleges that House of Electronics paid Rs 4,15,35,000 on 24‑02‑2023 to purchase Samsung mobile phones, but the stock was not transferred.
- Counsel for the State argued the case involved large diversion and required trial; counsel for the petitioner claimed it was a commercial dispute, suggesting civil remedy.
- The Court noted that criminal proceedings would be an abuse of process and that the matter is essentially a civil claim subject to limitation.
Final Outcome
- The Court quashes the P12 chargesheet filed under FIR No.153/2023 and directs that no further criminal proceeding be taken.
- The Special Leave Petition is disposed of; any pending applications are rejected.
- The second respondent retains the right to institute a civil suit for recovery, subject to the applicable limitation period.
Topics: Court Proceedings, Criminal Law, Civil Remedy