[Cites 29, Cited by 0]
Madhya Pradesh High Court
Luvy Mary Sathe vs The State Of Madhya Pradesh on 6 April, 2026
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1
I N T H E H I G H C O U RT O F M A D H YA P R A D E S H
AT J A B A L P U R
BEFORE
HON'BLE SHRI JUSTICE B.P. SHARMA
ON THE 6TH OF APRIL 2026
Misc. Criminal Case No.56032 of 2024
Atul Anupam Abraham & Another
Versus
The State of Madhya Pradesh & Others
WITH
Misc. Criminal Case No.56035 of 2024
Luvy Mary Sathe
Versus
The State of Madhya Pradesh & Others
WITH
Misc. Criminal Case No.56148 of 2024
Ekta Peters
Versus
The State of Madhya Pradesh & Others
WITH
Misc. Criminal Case No.56150 of 2024
Luvy Mary Sathe
Versus
The State of Madhya Pradesh & Others
WITH
Signature Not Verified
Signed by: SANTOSH
MASSEY
Signing time: 4/6/2026
5:35:52 PM
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Misc. Criminal Case No.56151 of 2024
Luvy Mary Sathe
Versus
The State of Madhya Pradesh & Others
WITH
Misc. Criminal Case No.5474 of 2025
Chandrashekhar Vishwakarma
Versus
The State of Madhya Pradesh & Others
WITH
Misc. Criminal Case No.59769 of 2025
Surya Prakash Verma
Versus
The State of Madhya Pradesh
WITH
Misc. Criminal Case No.46226 of 2024
Shashank Shrivastava
Versus
The State of Madhya Pradesh
WITH
Misc. Criminal Case No.46233 of 2024
Shashank Shrivastava
Versus
The State of Madhya Pradesh
WITH
Signature Not Verified
Signed by: SANTOSH
MASSEY
Signing time: 4/6/2026
5:35:52 PM
NEUTRAL CITATION NO. 2026:MPHC-JBP:26548
3
Misc. Criminal Case No.46241 of 2024
Shashank Shrivastava
Versus
The State of Madhya Pradesh
WITH
Misc. Criminal Case No.59761 of 2025
Surya Prakash Verma
Versus
The State of Madhya Pradesh & Others
WITH
Misc. Criminal Case No.59763 of 2025
Surya Prakash Verma
Versus
The State of Madhya Pradesh
WITH
Misc. Criminal Case No.59771 of 2025
Surya Prakash Verma
Versus
The State of Madhya Pradesh
..................................................................................................
Appearance:
Shri Vivek K. Tankha - Senior Advocate assisted by Shri Harshit Bari -
Advocate and Shri Shailendra Verma - Advocate for the petitioners in
respective petitions.
Shri Dinesh Prasad Patel - Government Advocate for the
respondent/State.
Signature Not Verified
Signed by: SANTOSH
MASSEY
Signing time: 4/6/2026
5:35:52 PM
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4
..................................................................................................
Reserved on : 15.01.2026
Pronounced on : 06.04.2026
..................................................................................................
ORDER
Since the facts and issues involved in the present petitions, seeking
quashment of different FIRs, are similar in nature, they are being heard
together and are being disposed of by this common order. This order shall
govern the disposal of all the aforesaid petitions.
2. The petitioners have filed these petitions under Section 482 of
Cr.P.C. seeking the following reliefs:-
"i. Quashment of FIR's bearing Crime Nos. 254 of 2024;
253 of 2024 registered at P.S. - Omti; Crime No. 275 of
2024 registered at P.S. Belbagh; Crime no 203 of 2024
registered at P.S. Sanjeevani Nagar; Crime No. 178 of 2024
registered at P.S. Gwarighat and Crime No. 219 of 2024
registered at P.S. Gorabazar, District Jabalpur (M.P.) and
all consequential proceedings arising therefrom.
ii. Initiate and enquiry against the erring officials for
registering frivolous cases against the petitioners.
iii. Provide any other relief which the Hon'ble Court may
deem fit in the interest of justice."
3. The brief facts given rise to the petitions (M.Cr.C. Nos.56032/2024,
56035/2024, 56148/2024, 56150/2024, 56151/2024 and 5474/2025) are
that according to the prosecution case, the petitioners are principals,
members of management committee, and principal advisors in the private
unaided schools of Jabalpur. The District Collector, Jabalpur formed an
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enquiry committee to conduct an enquiry in the aforementioned private
schools for alleged unauthorized increment in fees and regarding sale of
books having duplicate ISBN (international standard book number) to the
students. The enquiry committee formed by the collector consisted of 3
members including the complainants/respondent no. 3, Block Education
Officers and one SDO (Sub Divisional Officer). The enquiry committee
submitted its report dated 22.04.2024 wherein the committee found that the
alleged schools, in the past few academic years had increased the fee for
more than the prescribed limit and had included specific books in their
syllabus which were only available in certain selected shops and were sold
with duplicate ISBNs. Hence, the enquiry committee concluded that the
aforesaid schools have breached the mandate of M.P. Niji Vidyalaya (Fees
Tatha Sambandhit Vishayon Ka Viniyaman) Adhiniyam, 2017, and
therefore, certain actions including punitive actions were proposed to be
taken against the school administration and its representatives and also
against the book sellers.
4. The respondent/Collector relying on the enquiry report dated
22.05.2024 vide communication dated 24.05.2024, issued directions to
various government authorities to lodge FIRs against the management of
various schools, booksellers, publishers of the books, as well as other
employees like the principal of the schools. The Collector uploaded a post
on Facebook inviting parents of students to submit complaints, if any,
against the school managements and further informed that ISBN numbers
of books could be verified from the website https://isbn.gov.in. Pursuant to
the said post, certain complaints were received; whereafter committees
were constituted to conduct inquiries. The said committees submitted their
inquiry reports, on the basis of which FIRs were registered against
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principals of various schools and, in some cases, against members of the
school managements, management committees, booksellers, and
publishers. It is further stated that on the basis of the inquiry committee's
report dated 22.05.2024 and on the directions of the Collector, the
petitioners, along with other principals and employees of 21 reputed
private unaided schools of the region and certain booksellers, were called
for questioning at the concerned police stations on 27.05.2024 at 10:00
PM. Thereafter, on the insistence of the Collector, the complainants, who
were principals of government schools, lodged multiple FIRs, including
the aforesaid FIRs, at around 12:00 PM on the same day against the
petitioners and other accused persons. Due to lodging the aforesaid FIRs,
petitioners were arrested in midnight and were sent to judicial custody in a
mechanical manner. Subsequently, the petitioners were enlarged on bail by
orders passed by the Hon'ble Supreme Court as well as this Hon'ble Court.
5. Learned Senior Counsel for the petitioners submits that the
impugned FIRs have been registered against the petitioners, who are
principals and members of the management committees of some of the
most reputed schools of the city. He submits that under Section 5(3)(b) and
(c) of the M.P. Niji Vidyalaya (Fees Tatha Sambandhit Vishayon Ka
Viniyaman) Adhiniyam, 2017, no prior permission is required for
enhancement of fees up to 10% from the preceding academic year. The Act
provides for an inquiry by the competent committee and empowers it,
under Section 10(2), to impose a penalty of ₹2 lakhs and to direct refund of
excess fees, but does not contemplate any criminal liability against school
representatives such as principals, teachers, or members of the
management committee. Further, Section 15 of the Act gives it an
overriding effect over other laws; therefore, initiation of criminal
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proceedings is stated to be contrary to the scheme of the Act. It is further
submitted that the FIRs were lodged solely on the basis of the inquiry
report dated 22.05.2024, which recommended registration of criminal
cases against the petitioners and booksellers. Consequent thereto, the
District Education Officer issued orders declaring all fee increases from
academic years 2018-19 to 2024-25 invalid, directing refund of excess
fees within 30 days, reverting the fee structure to that of 2017-18, and
prohibiting inclusion of new books in the syllabus including other
directions.
6. It is submitted that the consequential orders passed by the District
Education Officer pursuant to the inquiry report dated 22.05.2024 were
challenged before Single Bench in various writ petitions and the said writ
petitions were dismissed by the Single Bench by common order dated
30.07.2024; however, order of the learned Single Judge was set aside by
the Division Bench vide order dated 02.12.2025 passed in Writ Appeal No.
1778 of 2024 and connected matters, whereby the proceedings dated
22.05.2024 arising out of the inquiry report were quashed and the State
authorities were directed to act strictly in accordance with the procedure
prescribed under the Act of 2017. It is further submitted that the said
proceedings constituted the very foundation of the impugned FIRs and,
once the foundation itself has been declared illegal and non-est, all
consequential proceedings, including the FIRs, are liable to be set aside.
7. It is submitted that there is no iota of evidence in the chargesheet
which could demonstrate that the fee was increased for more than the
prescribed limit as per the Act of 2017 and the prosecution has initiated
criminal proceedings against the petitioners for the offences punishable
under the Indian Penal Code, whereas the Act provides for an inquiry by
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the competent committee and empowers it, under Section 10(2), to impose
a penalty of ₹2 lakhs and to direct refund of excess fees, but does not
contemplate any criminal liability against school representatives such as
principals, teachers, or members of the management committee.
8. Allegation made by the prosecution against the petitioners, along
with the other co-accused, is that they had created pressure on the students
to purchase books from certain specific shops/booksellers, which is totally
contrary to the evidence produced by the prosecution in their chargesheets.
The material produced by the prosecution in relation to the aforesaid
allegation is the booklist/syllabus of the schools for the preceding few
academic years, which clearly shows that parents and students are free to
purchase books and uniforms from any shops of their choice. It is also
evident from the statements recorded under 161 of Cr.P.C. by parents
before the police authorities that there is no allegation against the
representatives of the schools that they had forced the students to purchase
books from any particular shop. The prosecution herein has failed to
establish and corroborate the allegation, as the material placed in the
record and the chargesheet states in favor of the petitioners and is clearly in
contravention of the allegation.
9. Moreover, the prosecution conducted the investigation in an improper
manner. In certain FIRs, books and book lists seized from different schools
were made part of the charge sheet of other schools. Books seized in cases
arising out of different crime numbers were wrongly clubbed together and
sent for ISBN verification. In some instances, books were neither seized
from the schools nor from the booksellers, and the prosecution failed to
disclose the material relied upon to conclude that books were being sold
with duplicate ISBNs. It is submitted that the Raja Rammohan Roy
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National Agency for ISBN has published manuals and FAQs on its official
website stating that the ISBN system does not impose any legal
requirement to obtain an ISBN, nor does it confer any legal or copyright
protection. It further clarifies that reprinting a book with only a change in
price does not require a new ISBN. Further, as per the letter issued by the
Ministry of Education, ISBNs issued prior to April 2016 cannot be verified
through the online portal. The prosecution has failed to provide any
reasonable explanation as to how it concluded that the ISBNs were forged
or fabricated, particularly when the verification portal used was not
affiliated with the ISBN Agency.
10. Learned Senior counsel further submitted that the present cases are
nothing but a sheer misuse of criminal machinery because of which the
petitioners who are teachers, principals, employees, and representatives of
the schools were deliberately placed under public scrutiny and
unnecessarily made to suffer which was agonizing for the petitioners. It
becomes very difficult to understand, how the present cases were
registered in absence of sufficient material and only on the basis of blatant
statements and communications of the State Administration. In view of the
aforesaid submissions, it is prayed to quash the impugned FIRs,
Chargesheets, and all consequential proceedings arising out of the
impugned FIRs against the present petitioners. In support of his
contentions, the counsel has placed reliance on Mohd. Ibrahim v. State of
Bihar, (2009) 8 SCC 751, Jupally Lakshmikantha Reddy v. State of A.P.,
2025 SCC OnLine SC 1950, Sheila Sebastian v. R. Jawaharaj, (2018) 7
SCC 581, Robert John D'Souza v. Stephen Gomes, (2015) 9 SCC 96,
Arshad Neyaz Khan v. State of Jharkhand, 2025 SCC OnLine SC 2058,
Ajay Malik v. State of Uttarakhand, 2025 SCC OnLine SC 185, Rekha
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Jain v. State of U.P., (2022) 3 SCC 497 and State of Haryana v. Bhajan
Lal, 1992 Supp (1) SCC 335.
11. Learned counsel for the petitioners in M.Cr.C. Nos. 46226, 46233,
46241 of 2024 and M.Cr.C. Nos. 59761, 59763, 59769, 59771 of 2025,
submit that allegation against the petitioner-Surya Prakash Verma who runs
Children Book House is that he has forged the ISBN numbers of the books
available in his book shop. It was also alleged that the Principals and
management of the private schools in connivance with the book sellers and
publishers constituted criminal conspiracy against the parents and students. It
is submitted that so far as the allegation with regard to forged ISBN numbers
on the books is concerned, as per the ISBN Portal, the books in question duly
match the registered ISBN records. It is evident from the material produced
from the chargesheet that the letter issued by the Ministry of Education
regarding verification of ISBNs stated that the date issued to the publishers
prior to April 2016 cannot be verified from the portal, and the prosecution has
not provided any reasonal explanation as to how they reached a conclusion
that the ISBNs are forged and fabricated. Moreover, the portal from which the
ISBN's were verified was not affiliated by the ISBN Agency, then how has
the prosecution culminated that the ISBN's on the books sold are forged. The
petitioner had furnished valid purchase bills and vouchers; however, the
prosecution has failed to place the said documents on record along with the
challan. The counterfoils of receipts are available and were also seized, yet
they have not been filed before the Court. It is submitted that approximately
3,000 books were examined during the enquiry by the enquiry committee and
thereafter returned to the petitioner on Supurdginama. Except for one seizure
memo pertaining to a single set of books from KG-I to XII standard, no
substantive seizure has been effected. Learned counsel for the petitioners
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contend that the petitioners have been falsely implicated. Therefore prayer
is made for quashment of FIR and other consequential proceedings.
12. As far as the case of petitioner-Shashank Shrivastava is concerned
he is the son-in-law of Surya Prakash Verma and is a Dentist by
profession. He has nothing to do with the business, which is being run by
Surya Prakash Verma. Merely because on the unfateful day, he was sitting
in the book shop owned by Surya Prakash Verma, he has been implicated
in the case. It is further contended that no single document is available on
record to demonstrate that petitioner-Shashank Shrivastava has any
connection with shop being Children Book House, licence of which is in
the name of Surya Prakash Verma.
13. Furthermore, it is submitted that the consequential orders passed by
the District Education Officer pursuant to the enquiry report were
challenged before the learned Single Bench in various writ petitions and
the said petitions were dismissed vide common order dated 30.07.2024,
however, the said order was set aside by the Division Bench vide order
dated 02.12.2025 passed in W.A. No.1778/2024 and other connected
matters and the respondents were directed to act strictly in accordance with
the procedure provided under the M.P. Niji Vidyalaya (Fees Tatha
Sambandhit Vishayon Ka Viniyaman) Adhiniyam, 2017 and M.P. Niji
Vidyalaya (Fees Tatha Sambandhit Vishayon Ka Viniyaman), 2020.
14. Learned counsel for the petitioner further submits that, so far as the
offence under Section 409 of the Indian Penal Code is concerned, it must
be proved that a person entrusted with property, or with any dominion over
property in his capacity as a public servant, commits criminal breach of
trust in respect of such property as defined under Section 405 of the IPC.
This means that such person must have dishonestly misappropriated or
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converted the property to his own use, or dishonestly used or disposed of
that property in violation of any direction of law prescribing the mode in
which such trust is to be discharged, or of any legal contract, express or
implied, made by him in respect of such trust, or willfully suffered any
other person to do so. So far as the offence under Section 420 of the IPC is
concerned, the same is not made out against the applicant, as there is no
allegation or material to show that the applicant cheated any person or
dishonestly induced the delivery of any property. Similarly, the offence
under Section 468 of the IPC is also not made out against the applicant, as
the applicant has not committed any forgery for the purpose of cheating.
Hence, the alleged offences are not attracted against the applicant.
15. That there is no evidence on record whatsoever to indicate that the
present applicant was involved in the commission of the aforesaid
offences. The present criminal proceedings are manifestly tainted with
mala fides and have been maliciously instituted with an ulterior motive to
wreak vengeance upon the applicant and to spite him due to private and
personal grudge. Applicants place reliance upon the judgment of the
Hon'ble Supreme Court in State of Haryana vs. Bhajan Lal, reported in
1992 (1) SCC 335, wherein the Hon'ble Court has laid down the categories
of cases in which criminal proceedings and FIRs are liable to be quashed
in exercise of inherent powers. The material on record clearly demonstrates
that the complaint has been filed in a mala fide, frivolous, and vexatious
manner; therefore, the First Information Report is liable to be quashed by
this Court. That the factual matrix unmistakably shows that the FIR is
nothing but a sheer abuse of the process of law, and this is a fit case
wherein the inherent powers under Section 482 of the Code of Criminal
Procedure ought to be exercised by this Court to secure the ends of justice.
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16. Learned Government Advocate has opposed the petitions and
submitted that in the cases in hand serious allegations have been levelled
against the School Management, Principal, Book Sellers and publishers
etc. and since last so many years, parents of the students have been duped
under the garb of enhancement of fee. Enhancement of fee in many cases
is much more than 50%. There is seizure of books, which contained forged
ISBN.
17. It is also submitted that pursuant to order passed by the Collector,
committees were constituted, which conducted enquiries in regard to the
Schools and concluded that there was enhancement in fee without there
being any permission by the competent Authority and there were
mentioning of forged ISBN on the books. It is contended that the parents
of the students were persuaded to buy books from a particular book seller
and as a result of which the concerned book sellers sold the books to the
students, which contained forged or duplicate ISBN. It is contended that
the allegations are serious in nature, inasmuch as, no such ISBNs are
available on the portal. It is, thus, clear that in the present cases, there is
nexus between the school Management, Principal, Book Sellers and
publishers. The trial is going on in the matters and as such at this stage
interference by this Court is unwarranted.
18. Learned counsel for the respondent/State contends that the parents of
the students were persuaded to buy books from a particular book seller and
as a result of which the concerned book sellers sold the books to the
students, which contained forged or duplicate ISBN. It is contended that
the allegations are serious in nature, inasmuch as, no such ISBNs are
available on the portal. It is, thus, clear that in the present case, there is
nexus between the school Management, Principal, Book Sellers and
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publishers. Investigation in the matter is still going on and the role and act
of each of the accused persons are still being investigated and as such at
this stage, the applicant is not entitled for grant of bail.
19. Upon a careful consideration of the submissions advanced and the
material placed on record, this Court finds that the controversy, at its core,
arises from the interpretation and application of the provisions of the M.P.
Niji Vidyalaya (Fees Tatha Sambandhit Vishayon Ka Viniyaman)
Adhiniyam, 2017 (hereinafter referred to as "the Act of 2017"). A plain
reading of Section 5(3)(b) and (c) of the Act of 2017 unequivocally
demonstrates that the management of a private unaided school is not
required to obtain prior permission for enhancement of fees, so long as
such increase remains within the prescribed limit of 10% from the
preceding academic year. Further, the statutory scheme contemplates that,
in cases of deviation, the competent authority is empowered to impose a
monetary penalty, which, under Section 10 (2), may extend to ₹2,00,000/-
along with a direction to refund any excess fee collected. Significantly, the
Act does not envisage the imposition of criminal liability upon
functionaries such as principals, teachers, or members of the management
committee. Section 15 of the Act further provides for its overriding effect.
It is a settled principle that a special statute prevails over general law, as
expounded by the Hon'ble Supreme Court in Sharat Babu Digumarti v.
State (NCT of Delhi), (2017) 2 SCC 18, the relevant extract is reproduced
herein:
"32. Section 81 of the IT Act also specifically provides that
the provisions of the Act shall have effect
notwithstanding anything inconsistent therewith
contained in any other law for the time being in force.
All provisions will have their play and significance, if
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the alleged offence pertains to offence of electronic
record. It has to be borne in mind that IT Act is a
special enactment. It has special provisions. Section
292 IPC makes offence sale of obscene books, etc. but
once the offence has a nexus or connection with the
electronic record the protection and effect of Section
79 cannot be ignored and negated. We are inclined to
think so as it is a special provision for a specific
purpose and the Act has to be given effect to so as to
make the protection effective and true to the legislative
intent. This is the mandate behind Section 81 of the IT
Act. The additional protection granted by the IT Act
would apply."
20. The aforesaid consequential orders were subjected to judicial
scrutiny before this Court in writ proceedings. Though initially certain writ
petitions were dismissed, the same were subsequently assailed in writ
appeal, wherein this Court, vide order dated 02.12.2025, set aside the
orders passed by the learned Single Judge and quashed the proceedings
arising out of the enquiry report dated 22.05.2024. The Division Bench
held that the authorities had acted beyond the scope of the Act of 2017 and
directed the State to proceed strictly in accordance with the statutory
framework. The operative portion of the said order passed by the Division
Bench of this Court in Writ Appeal (WA No. 1778/2024), as reproduced
herein reflects reservations regarding the manner in which the enquiry was
conducted and the extent of interference with the management of private
institutions is hereby followed:
"12. It appears that the Committee acted in a very hostile
atmosphere against the private educational institutions.
When the allegations are of competency or exceeding the
limit, while exercising the power by a Statutory
Committee, the writ appeals and writ petitions are
certainly maintainable. The writ Court has wrongly
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dismissed the writ petitions for want of a remedy of
appeal available under the Act of 2017. Admittedly, the
Competent Authority has not conferred any power under
Section 5 of the Act of 2017 to fix the fee and issue
various directions which are within the domain of the
management or society which runs the school. It amounts
to interference with the management of the schools,
which is not the scope of the Act of 2017 and Rules 2020;
therefore, the impugned order is not sustainable. Even
otherwise, the manner on which the Committee
conducted the proceedings by way of public hearing is
highly objectionable.
13. The Committee conducted a public hearing in an
open place by calling all the parents, students,
representatives of school management, owners,
principals etc., to one place. Such a type of compliance
with the opportunity to hearing is not contemplated in the
Act and Rules, and thereafter, an order. This Court, by
way of interim relief, restrained the respondents from
conducting such a public hearing in which the
management, principals, and teachers were being
humiliated in front of the public and the parents. If the
parents were not satisfied with the fee, nobody compelled
them to admit their wards in the schools.
14. The manner in which the entire issue was handled by
the local administration, same has developed a rift and
difference between the management of the school and the
parents, which is not good for the education and career
of the students. The issue could have been handled in a
proper manner as provided under the Act of 2017 and the
Rules of 2020.
15. With the above observation, the impugned order
30.07.2024 is hereby set aside. The Writ Appeal
No.1778/2024 and all the writ appeals are allowed. The
respondents are directed to act strictly in accordance
with the procedure provided under the Act of 2017 and
the Rules of 2020."
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21. In view of the aforesaid, this Court does not find any merit in the
submission that the proceedings forming the foundation of the impugned
FIRs are unsustainable merely on the ground relating to alleged issues
concerning ISBN verification. The scope and points for consideration in
Writ Appeal No. 1778 of 2024 are clearly distinguishable from the present
proceedings, as the issues involved therein pertained to the validity of
administrative action regarding the hike in fee under the statutory
framework, whereas the present petitions require this Court to examine
whether prima facie material exists disclosing the commission of
cognizable offences and whether continuation of proceedings amounts to
abuse of the process of law.
22. Upon a comprehensive consideration of the catena of judgments
relied upon, this Court finds that the Hon'ble Supreme Court has
consistently reiterated the strict parameters governing criminal
prosecution, particularly in cases alleging offences of cheating, forgery,
criminal breach of trust, and conspiracy. In Mohd. Ibrahim (supra), the
Hon'ble Supreme Court lucidly delineated the essential ingredients of the
offences of forgery, use of forged document, and cheating, and held that
the very foundation of an offence under Sections 467 and 471 IPC is the
making of a "false document" as defined under Sections 463 and 464 IPC.
The Court clarified that a document can be said to be "false" only when it
is made or executed by a person dishonestly or fraudulently so as to make
it appear that it was executed by someone else or under the authority of
another, or where a document is materially altered without authority, or
obtained by deception from a person incapable of understanding it. It was
emphatically held that merely executing a document containing a false
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claim or assertion, such as transferring property not owned by the
executant, would not amount to forgery unless there is impersonation or
false attribution of authority. The Court further observed that in the
absence of making of a false document, the offences under Sections 467
and 471 IPC cannot be attracted. Similarly, with respect to the offence of
cheating under Section 420 IPC, the Court reiterated that there must be a
clear element of dishonest or fraudulent intention at the inception, coupled
with inducement leading to delivery of property or causing harm. In the
facts of the case, the Supreme Court found that the allegations, even if
accepted in entirety, did not satisfy the essential ingredients of offences
under Sections 420, 467, 471, and 504 IPC, as there was no deception, no
inducement, and no making of a false document. Consequently, the
proceedings and charges under these provisions were quashed. The
principle that emerges from the aforesaid judgment is that criminal liability
for forgery is strictly confined to the maker of the false document, and
unless the statutory ingredients of "making a false document" and requisite
mens rea are clearly established, prosecution under forgery-related
provisions cannot be sustained; similarly, mere allegations without
foundational elements of deception and inducement cannot constitute the
offence of cheating.
23. In Jupally Lakshmikantha Reddy (supra), the Apex Court
underscored that the sine qua non for constituting offences under Sections
420, 468 and 471 IPC is the existence of dishonest or fraudulent intention
at the very inception, coupled with the making of a false document and
resultant wrongful gain or loss. The Court held that in absence of material
demonstrating that the accused had fabricated the document or acted with
requisite mens rea, the continuation of criminal proceedings would be
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unsustainable. This principle was further fortified in Sheila Sebastian
(supra), wherein it was authoritatively held that forgery is an offence
which can be attributed only to the maker of the false document, and
unless the accused is shown to have actually created or executed such false
document, the essential ingredients of Sections 463 and 464 IPC remain
unfulfilled, rendering the prosecution legally untenable.
24. Similarly, in Robert John D'Souza (supra), the Supreme Court
reiterated that for offences such as criminal breach of trust or cheating,
mere allegations are insufficient unless supported by foundational facts
demonstrating entrustment, dishonest misappropriation, or inducement.
The Court emphasized that inherent powers under Section 482 Cr.P.C must
be exercised to prevent abuse of process where the uncontroverted
allegations do not disclose any offence, particularly when the prosecution
appears to be motivated or lacking in substance. This principle finds
further resonance in Arshad Neyaz Khan (supra), wherein the Apex Court
held that offences of cheating and criminal breach of trust are distinct and
cannot coexist on the same set of facts, and that absence of dishonest
intention at the inception vitiates the very foundation of such charges. The
Court cautioned against permitting criminal law to be used as a tool for
harassment or to settle civil disputes, especially where the allegations are
vague and unsupported by material evidence.
25. In Ajay Malik (supra), the Hon'ble Supreme Court elucidated the
essential ingredient of criminal conspiracy under Section 120B of IPC,
holding that mere suspicion or association is insufficient, and there must be
a clear, discernible agreement to commit an unlawful act, evidenced
through some tangible manifestation. In the absence of such material
indicating a meeting of minds, the charge of conspiracy cannot be
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sustained. Likewise, in Rekha Jain (supra), the Apex Court quashed
criminal proceedings where the allegations were primarily against other
co-accused and no specific role or incriminating material was attributable
to the appellants, holding that continuation of such proceedings would
amount to abuse of process and unwarranted harassment.
26. All these principles ultimately converge in the celebrated judgment
of Bhajan Lal (supra), wherein the Hon'ble Supreme Court exhaustively
delineated the categories of cases where inherent powers under Section
482 Cr.P.C or extraordinary jurisdiction may be exercised to quash
criminal proceedings. It was held, inter alia, that where the allegations,
even if taken at face value, do not constitute any offence; where the
uncontroverted material fails to disclose the commission of an offence; or
where the proceedings are manifestly attended with mala fide or instituted
with ulterior motive, the Court would be justified in intervening to secure
the ends of justice and prevent abuse of process.
27. It is submitted that the prosecution has not produced any material to
depict that there was an agreement between the booksellers and the schools
to commit an offence, whereas the charge of conspiracy must be explicitly
evidenced and should be easily discernible in the acts of the conspiring
parties. Conspiracy cannot be made out without some kind of physical
manifestation of the alleged being established, which was held by the
Hon'ble Supreme Court in the case of Ajay Malik (supra).
28. Upon a comprehensive evaluation of the entire material placed on
record, this Court is of the considered opinion that the present petitions do
not warrant interference in exercise of inherent jurisdiction under Section
482 of the Cr.P.C. The material collected by the investigating agency, at
this stage, prima facie discloses the existence of a structured and deliberate
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scheme involving the principal/school management, selected booksellers
(including the present petitioners), and certain publishers, whereby books
bearing fake or duplicate ISBNs were introduced into the academic
curriculum and supplied exclusively through selected channels to generate
unlawful financial gain.
29. From the material placed on record, it is evident that the books
prescribed by the school were not part of the open market supply chain and
were made available only through a limited group of booksellers, including
the petitioners. The investigation has revealed that such books carried
abnormally high margins, approximately to the extent of 69%, which is
wholly disproportionate to the actual printing and handling cost. The very
nature of such pricing, when read in conjunction with the allegation that
these books bore fake or duplicate ISBNs, prima facie indicates that the
pricing mechanism was not based on legitimate commercial considerations
but was structured to extract unlawful profits. The material further reflects
that the information regarding selection of books and syllabus was not
made public in terms of Rule 6(1) (a) of The Madhya Pradesh Niji
Vidyalaya (Fees Tatha Sambandhit Vishayon Ka Viniyaman) Rules, 2020,
but was selectively disclosed in advance to a few booksellers (petitioners
herein), enabling them to place orders 10-15 days prior to publication on
the notice board or school portal. This fact, supported by documentary
charts in the case diary, clearly demonstrates a coordinated pre-
arrangement and meeting of minds, thereby constituting a prima facie case
of criminal conspiracy.
30. The allegation that parents and students were compelled, both
directly and indirectly, to purchase books and stationery from specific
vendors also finds support from the material collected during investigation.
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The exclusivity of supply, coupled with the timing of disclosure and
limited vendor access, creates a situation where parents had no real or
effective choice, thereby resulting in coercive commercial practices. It is
further brought on record that stationery items were also sold through the
same channels with high margins, thereby augmenting the financial burden
on parents. The cumulative financial impact, as reflected in the
investigation, indicates that students were compelled to incur an additional
expenditure of approximately ₹53,36,858/-, which cannot be brushed aside
as incidental or insignificant.
31. The seizure of books during investigation further strengthens the
prosecution case. As per the case diary and investigation findings, 136
books relating to Christ Church School were seized in Crime No.
275/2024, and upon verification by the competent authority, several ISBN
numbers were found to be invalid/forged or mismatched with the
publication details. Similarly, from the premises of the petitioners, multiple
syllabus books were seized, out of which a substantial number were found
to contain invalid/forged ISBNs. The list of such books, along with their
ISBN discrepancies and publisher mismatches, forms part of the record
and cannot be ignored at this stage. These facts prima facie establish that
the books in circulation were not genuine publications in the strict sense
and were part of a controlled supply chain for illegal monetary gain to the
petitioners.
32. The material collected during investigation prima facie indicates
that, through criminal collusion and conspiracy between the petitioner
school management, selected booksellers (including the present
petitioners), and certain publishers who are presently absconding and
against whom investigation is still pending, a monopolistic arrangement
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was deliberately created with the object of generating unlawful and
excessive profits. It further emerges that, at the time of admission, parents
were subjected to direct and indirect coercion to procure books bearing
fake or duplicate ISBNs exclusively from the selected booksellers,
including the petitioners herein, at exorbitant and unjustified prices,
thereby reflecting a concerted scheme of exploitation and financial gain.
33. During the course of investigation, the seized books were forwarded
for verification of their ISBNs to the Raja Rammohun Roy National
Agency, Delhi, and upon receipt of the report, it has been found that
several books contained invalid ISBN numbers and, in multiple instances,
the ISBN details did not correspond with the names of the books or their
publishers. Further, from the premises of petitioner Surya Prakash Verma,
proprietor of Children Book House, and co-accused Shashank Shrivastava,
large number of syllabus books were seized, out of which 10 books were
found to bear invalid ISBNs as per the verification report. The nature of
such books, bearing fake or duplicate ISBNs, prima facie indicates that
they are not part of the legitimate open market distribution and would
ordinarily be available only to the entities involved in their printing and
controlled circulation. It is also evident that the actual cost of such books is
confined to printing and handling charges; however, the marked retail price
of these books reflects an artificially inflated component, which, in the
facts and circumstances of the case, prima facie constitutes an element of
unlawful commission and fraudulent gain.
34. Another significant aspect emerging from the record is the
unexplained and large-scale alteration of prescribed textbooks, wherein
approximately 162 books from nursery to Class XII were replaced in a
single academic session without any documented justification or decision-
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making process. No minutes of meetings or academic rationale have been
produced to explain such changes. This arbitrary replacement, when
viewed in light of the exclusive supply arrangement and high profit
margins, prima facie indicates a deliberate attempt to create recurring
demand and ensure continued financial benefit. The lack of transparency in
the book selection process, coupled with the school management's failure
to verify the authenticity of ISBNs, further substantiates the existence of a
deliberate conspiracy and active collusion.
35. Another significant circumstance emerging from the material
collected during investigation pertains to the excessive weight of school
bags, which also lends support to the allegation of conspiracy between the
school management and the selected booksellers. It has been prima facie
found that the number of prescribed books and stationery items for each
class was disproportionately increased; resulting in school bags exceeding
the permissible limits prescribed under applicable government guidelines.
This inflation in the number of books, without any academic justification,
not only imposed a physical burden upon the students but also directly
escalated the financial burden on the parents. Such conduct, when viewed
in conjunction with the exclusive supply mechanism and high-profit
margins on books and stationery, indicates a deliberate design to compel
parents to purchase unnecessary materials, thereby causing wrongful loss
to them and corresponding unlawful gain to the accused persons. This
aspect, therefore, forms an integral part of the alleged criminal conspiracy
and cannot be treated as a mere administrative lapse.
36. During the course of investigation, serious financial irregularities
have been unearthed in the accounts of St. Aloysius School, which further
fortify the allegations against the petitioners. It has been revealed that in
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the academic year 2020-21, the total income of the school was
₹4,71,30,698/-, out of which an amount of ₹2,13,56,097/- was shown as
expenditure purportedly paid to the Jabalpur Diocesan Education Society;
however, the audit report does not reflect any such liability of the school
towards the said society. Similarly, in the academic year 2021-22, against
a total income of ₹5,98,81,540/-, an expenditure of ₹2,90,09,967/- was
recorded as paid to the aforesaid society, which again finds no
substantiation in the audit records. More significantly, during the same
period, a sum of ₹5,00,00,000/- was transferred from the school's bank
account to the said society, as evidenced by bank statements, whereas the
audit report reflects only ₹2,90,09,967/-, thereby indicating a substantial
discrepancy. In the subsequent academic year 2022-23, the school reported
a total income of ₹7,54,09,945/-, with an expenditure of ₹3,05,08,265/-
shown as paid to the same society, despite the absence of any
corresponding liability to the school in the audit report. The documents and
financial records annexed with the case diary, therefore, prima facie
demonstrate that substantial amounts were transferred by the school
management and its principal to the said society without any lawful or
accounted basis, indicating grave financial impropriety.
37. The investigation also discloses serious financial irregularities in the
accounts of the concerned institutions. Substantial amounts have been
shown as expenditure towards entities such as Jabalpur Diocesan
Education Society without any corresponding liability reflected in audit
reports. There are glaring discrepancies between bank transactions and
audited figures, including transfer of amounts far exceeding the recorded
expenditure. These financial transactions, prima facie, indicate diversion of
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funds and lend further support to the allegation that the entire mechanism
was designed to generate unlawful financial gain.
38. The contention of the petitioners i.e. the School Principals that they
cannot be held liable for offences of forgery on the ground that they are not
the "makers" of the books or documents, does not persuade this Court at
this stage. The material on record does not attribute isolated or passive
conduct to the petitioners; rather, it indicates their active participation in a
larger chain of events involving selection, and advanced information of the
aforesaid books to the bookseller. When such acts are viewed in the
backdrop of a prima facie established conspiracy, the role of each
participant cannot be ignored or evaluated in isolation. The liability arising
out of conspiracy extends to all participants in furtherance of the common
design, and therefore, the defense sought to be raised by the petitioners is a
matter to be adjudicated upon evidence during trial.
39. During the course of investigation, a large number of witnesses have
been examined, including officials from the administration, the education
department, as well as the complainants, and their statements have been
duly recorded under the relevant provisions of law. The said statements,
prima facie, lend support to and substantiate the allegations levelled
against the petitioners. Upon completion of investigation, a charge-sheet
has been filed before the competent trial Court against the present
petitioners; however, certain co-accused persons, including the publishers
alleged to have printed books bearing fake or duplicate ISBNs, are still
absconding, and the investigation in respect of such accused persons is
continuing.
40. It has been contended on behalf of the petitioners that in certain
instances no books were seized either from the schools or from the
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concerned booksellers and, therefore, in the absence of primary evidence,
the very foundation of the allegation regarding circulation of books bearing
forged or duplicate ISBNs becomes doubtful. It is further urged that ISBN
is merely a classification and identification mechanism administered by the
Raja Rammohun Roy National Agency for ISBN under the Ministry of
Education, Government of India, and that obtaining an ISBN is not a legal
mandate nor does it confer any copyright protection. Reliance has also
been placed on the communication dated 27.08.2024 issued by the
Ministry of Education, wherein it has been clarified that ISBNs issued
prior to April 2016 were allotted manually and may not be reflected on the
present digital portal, and that absence of such data does not render the
ISBN invalid. It is, therefore, contended that the prosecution has failed to
distinguish between pre and post digitalisation ISBNs and has not
produced cogent material to establish that the books in question bore
invalid or unauthorised ISBNs. It is also contended that, in several
instances, books and booklists pertaining to one school were seized and
made part of the investigation in relation to another.
41. However, this Court is of the considered view that the aforesaid
contentions raised by the petitioners pertain to disputed questions of fact
and the evidentiary value of the material collected during investigation,
which cannot be conclusively adjudicated at this stage while exercising
jurisdiction under Section 482 Cr.P.C. The veracity of the ISBNs, the
manner of their issuance, and the authenticity of the seized books are all
matters which require detailed examination of evidence, which falls
squarely within the domain of the trial Court. At this preliminary stage, it
is neither permissible nor appropriate for this Court to undertake a
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meticulous analysis of such defence pleas, and the same are, therefore, left
open to be adjudicated during the course of trial.
42. It is well settled that the inherent powers under Section 482 Cr.P.C.
are to be exercised sparingly and only in cases where the allegations do not
disclose any offence or where the proceedings are manifestly attended with
mala fide. In the present case, the allegations are supported by
documentary evidence, seizure material, expert verification, and witness
statements. The same cannot be said to be inherently improbable or absurd.
On the contrary, they disclose a prima facie case requiring thorough
adjudication. The defence raised by the petitioners involves disputed
questions of fact, appreciation of evidence, and examination of witnesses,
which are matters exclusively within the domain of the trial Court.
43. At this stage, this Court cannot undertake a meticulous examination
of the evidentiary value of the material nor can it record findings on
disputed factual issues by conducting mini-trial. The sufficiency or
reliability of evidence is not to be tested in proceedings under Section 482
Cr.P.C. Once it is found that the allegations, taken at their face value,
disclose the commission of cognizable offences and are supported by
prima facie material, the proceedings ought not to be quashed.
44. In view of the aforesaid discussion, this Court is of the considered
opinion that sufficient material exists on record indicating the involvement
of the petitioners in a larger conspiracy involving the school management,
selected booksellers, and publishers, aimed at generating unlawful
financial gain through circulation of books with fake or duplicate ISBNs
and creation of a monopolistic supply chain. The case does not fall within
any of the exceptional categories warranting interference at this stage.
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45. Accordingly, all the petitions being devoid of merit are hereby
dismissed. All pending IAs in these petitions are also dismissed, as the
counsel of the petitioners neither pressed the same during the course of
arguments nor sought adjudication thereon. The trial Court shall proceed
with the matter in accordance with law and decide the case on its own
merits, without being influenced by any observations made herein. Record
indicates that investigation is pending against some of the accused persons
especially book publishers, therefore, this Court by invoking the inherent
powers under Section 482 of Cr.P.C, the Superintendent of Police, Jabalpur
is directed to complete the investigation as early as possible.
46. Registry is directed to send a copy of this order to the concerned trial
Court as well as Superintendent of Police, Jabalpur.
(B.P. SHARMA)
JUDGE
@SM@
