The Allahabad High Court has stayed the arrest of Deepak Gupta of Noida, accused of cheating crores of rupees by selling fake paintings of famous painter Picasso.
The Division Bench of Justice Vivek Kumar Birla and Justice Vinod Diwakar passed this order while hearing a petition filed by Deepak Gupta @ Deepak Kumar Gupta.
By means of the petition, the petitioner is seeking quashing of the first information report dated 10.06.2023, registered through application under Section 156(3) Cr.P.C with Case under Sections 420, 406, 467, 468, 471, 306, 506 & 120B IPC, Police Station Sector 20, Noida, District Gautam Buddh Nagar. Further prayer has been made not to arrest the petitioner pursuant to said FIR.
Submission of the Senior Counsel for the petitioner is that the first information report has been lodged by filing an application under Section 156(3) Cr.P.C on 23.05.2023 levelling allegations against the named accused persons that they are responsible for the suicide committed by Captain Tarun Malhotra on 30.10.2022 and therefore, the first information report has been registered under section 306 IPC as well.
It is submitted that this prosecution under section 306 IPC lodged after about 7 months by filing an application under Section 156(3) Cr.P.C is nothing but an abuse of process of law, inasmuch as the allegation is that Captain Tarun Malhotra took his life by consuming some poisonous substance whereas no post mortem report has been done in the case.
He further submitted that the stand taken is that in the legal notice regarding payment of money it was stated by the informant side that he died due to heart attack because he was not being repaid the friendly loan amount. This notice has been made by the father of late Captain Tarun Malhotra.
It is submitted that both sides are old family friends as admitted in the impugned FIR itself. Submission, therefore, is that no offence under Section 306 IPC has been made out.
In so far as the other offences are concerned, it is submitted that present criminal prosecution has been lodged by filing an application under Section 156(3) Cr.P.C after 7 months on 23.05.2023 regarding some money transactions although it is alleged that some fake paintings of Picasso was given in lieu whereof amount was taken and with the promise that if the aforesaid painting remains unsold within a period of one year then he will pay Rs 18 Crores to complainant and his friend.
It is submitted that in respect of money transactions father of deceased has given legal notice dated 31.01.2023 sent by Malhotra and Co Advocates under signature of Vineet Malhotra, Advocate for the aforesaid legal Firm clearly alleging therein that friendly loan was given through RTGS but the same has not been repaid.
It is stated that ultimately on account of non-return of the funds and the pressure created on late Captain Tarun Malhotra, he suffered a major heart attack, which resulted into untimely death on account of petitioner’s conduct and non-return of huge amounts which the petitioner had taken as a friendly loan. This clearly reflects that in fact this legal notice nowhere mentioned transactions in relation to Picasso painting.
It was also highlighted that another legal notice dated 04.02.2023 was given by Vishal Gohri, Advocate to the petitioner wherein it was again mentioned that friendly loan was given, however, the fact regarding death of Captain Tarun Malhotra was not mentioned.
It was also submitted that an attempt was made to repay the loan amount but the same could not be paid (for one reason or other, which we are not inclined to enter into).
Submission, therefore, is that admittedly for the purpose of repaying the loan amount, in the first information report, this fact has been admitted that in fact, petitioner Deepak Gupta had offered to sell the property for the purpose of making repayment towards the amount so taken but that was not found feasible. Submission, therefore, is that in this background, the bona fide of the petitioner is clear and no offence under the aforesaid sections have been made out.
To show the bona fide of the petitioner, it is submitted by the Senior Counsel for the petitioner that the amount of Rs 3.7 crore that is being claimed (not only the claim by the informant but including the claim made by the father of late Captain Tarun Malhotra) would be paid within a time bound period as may direct by the Court.
Senior Counsel for the petitioner further submitted that the petitioner is ready to deposit half of the amount in question i.e One Crore and Eighty Five Lakhs (Rs 1,85,000,00) only within 10 days from today before the Registry of this Court and he has no objection in case that amount is withdrawn by the informant by filing appropriate application before the Court.
It is further submitted that the balance amount shall be deposited within one month from the date of first deposit in the Registry of this Court and as already stated that the informant may be set at liberty to withdraw the said amount as well.
Lastly, it is submitted that the petitioner is ready to remain present before the Investigating Officer on the date so fixed by the Court and shall cooperate in the investigation.
Submission, therefore, is that no offence is made out and the criminal prosecution is absolutely mala fide in nature and is an abuse of process of law, therefore, the impugned FIR is liable to be quashed.
Per contra, Anurag Khanna, Senior Counsel for the informant submitted that a bare perusal of first information report clearly reflects that a cognizable offence is made out.
He submitted that the first information report has been lodged by adopting legal procedure under Section 156(3) Cr.P.C and delay in such matters is inconsequential and in any case the same has been explained in the first information report itself that the application under Section 156(3) Cr.P.C came to be filed only after receiving the receipts of Picasso Painting Foundation that painting is fake and is not genuine.
It is submitted that in the first information report it has been clearly mentioned that in the month of March 2023, the complainant got shocking news from the Picasso authentication through Gurr Johns Ltd London that the painting is completely fake and has not been made or signed by Picasso. Subsequently, when a complaint was made the informant was also threatened as an envelope containing threat was found on the car of the informant parked in a public place and it is submitted that under such circumstances the accused persons are directly connected with the offence under Section 306 IPC as well as other offences and no interference is warranted.
AGA has opposed the petition and submitted that investigation in the case is pending.
The Court observed that the matter requires consideration.
The Court granted four weeks time to file counter affidavit for the respondents and two weeks time to file rejoinder affidavit. List immediately thereafter.
“Till the next date of listing or till submission of police report under Section 173(2) Cr.P.C, the arrest of the petitioner pursuant to the first information report dated 10.06.2023, registered through application under Section 156(3) Cr.P.C with Case under Sections 420, 406, 467, 468, 471, 306, 506 & 120B IPC, Police Station Sector 20, Noida, District Gautam Buddh Nagar shall remain stayed provided he cooperates in the investigation”, the Court ordered.