Question

In which case the Highest Court of the country imposed Rs. 25 lakhs on a litigant for initiating criminal proceedings in a civil dispute in 2024?

• A. Dinesh Gupta v. State of Uttar Pradesh and Others
• B. Vishal Tiwari v. Union of India and others
• C. Nabendu Kumar Bandopadhyay v. Additional Chief Secretary and Others
• D. Sarfaraz Alam v. Union of India and Others

Hint:

Ensure that legal procedures are used properly in accordance with the nature of the case, to avoid unnecessary financial penalties and judicial misuse.

Answer 1

The Correct Option is A

The Supreme Court imposed Rs. 25 lakhs on the litigant, Dinesh Gupta, in 2024 for initiating criminal proceedings in a civil dispute. This case highlighted the importance of not misusing criminal procedures in civil matters, which can cause unnecessary strain on the judicial system.

Answer 2

The landmark case in which the Supreme Court of India imposed a penalty of ₹25 lakhs on a litigant for initiating criminal proceedings in a civil dispute in 2024 is Dinesh Gupta v. State of Uttar Pradesh & Anr.

Background of the Case:
In this case, the complainant, Karan Gambhir, alleged that his company had extended short-term loans to two companies, Gulab Buildtech and Verma Buildtech, which were later converted into equity shares. He claimed that the promoters of these companies, including Dinesh Gupta and Rajesh Gupta, had induced him into this arrangement with promises of high returns. Subsequently, both Gulab and Verma Buildtech merged into another company, BDR Builders, reducing the complainant’s shareholding percentage without his consent. The complainant filed an FIR in Gautam Budh Nagar, alleging cheating and forgery.

Supreme Court's Observations:
The Supreme Court, comprising Justice Vikram Nath and Justice Rajesh Bindal, observed that the dispute was essentially of a civil and commercial nature. The Court noted that the complainant had concealed material facts and indulged in forum shopping by filing the FIR in a jurisdiction that lacked territorial authority. The Court emphasized that the criminal justice system should not be misused to settle commercial disputes.

Judgment:
On January 11, 2024, the Supreme Court quashed the FIR and subsequent proceedings against the appellants. Additionally, the Court imposed a cost of ₹25 lakhs on the complainant, to be deposited within four weeks. The Court stated:
"Unscrupulous litigants should not be allowed to go scot-free. They should be put to strict terms and conditions including costs. It is time to check with firmness such litigation initiated and laced with concealment, falsehood, and forum hunting."

Significance:
This judgment serves as a stern warning against the misuse of criminal proceedings to settle civil disputes. It reinforces the principle that the legal system should not be exploited for personal vendettas and underscores the importance of maintaining the sanctity of judicial processes.

Therefore, the correct answer is: Dinesh Gupta v. State of Uttar Pradesh & Anr.