File petition n HC for quashing of FIR 

2) better engage a lawyer 

3) you can sue lawyer for damages 

4) also file defamation case against lawyer 

You need to fight the same on merits it’s not that he is a lawyer he can be influencial

1. You have to challenge the same on the basis of documentary evidences in your support.

2. If you are aware of the legal proceedings then you can very well appear as party in  person and fight your case on your own.

3. The lawyer's fee paid by the litigant is not recoverable  except if the court is passing an order for the costs to be paid by the losing party.

4. Defamation case is not maintainable but the affected person can file a criminal complaint if he has evidence to prove the offences alleged to have been done  by the customer

1. First you file a case for cheating for non payment of your dues. Once you do then contest this case as well.

2. No. Hire an advocate.

3. File a civil suit for damages as well.

4. Yes, file a criminal case for cheating and civil suit for damages. Unless you file these cases this advocate will not go silent. 

The facts you have described clearly show that this is a purely commercial dispute that has been wrongfully converted into a criminal complaint. The law is well settled that a disagreement over payments or completion of contractual work does not amount to cheating or criminal breach of trust. There was no dishonest intention on your part from the beginning, and you completed most of the work, provided warranty service, and maintained transparency. The complaint against you is, therefore, an abuse of criminal law.

The builder’s background as a criminal lawyer and his local influence may make the situation intimidating, but influence cannot sustain a false case. Courts are guided by evidence and procedure, and your case is defensible. The best step is to engage a competent criminal defence advocate in the same jurisdiction where the case is filed. Your lawyer should immediately apply for discharge or move the High Court for quashing of proceedings under Section 482 CrPC, depending on whether cognizance has been taken. All invoices, quotations, payment receipts, correspondence with the OEM, and the OEM’s written confirmation that there was no overcharging should be filed to show that the matter is commercial, not criminal. The Supreme Court has repeatedly held that criminal prosecution for civil disputes amounts to abuse of process, as seen in State of Haryana v. Bhajan Lal (1992 Supp (1) SCC 335), Vesa Holdings v. State of Kerala (2015) 8 SCC 293, and Indian Oil Corporation v. NEPC India Ltd. (2006) 6 SCC 736.

While technically you can appear and argue your case in person, it is not advisable in a criminal matter, particularly when the complainant is a practicing criminal lawyer. Court procedures, drafting, and arguments require technical skill, and an experienced advocate will ensure that no procedural loophole is exploited against you. You can remain closely involved and supply documents, but formal representation should be through a lawyer.

Regarding recovery of the costs you will incur, the law provides two options. First, under Section 250 of the Criminal Procedure Code, if the magistrate finds that the complaint was false and vexatious, he can order the complainant to pay compensation. Though the amount is usually modest, it creates a formal record of malicious prosecution. Second, once the case is dismissed or quashed, you can file a civil suit for damages for malicious prosecution and claim recovery of the legal expenses and loss to reputation.

For the harassment and defamation caused by the complainant, you can take separate action once the false case is dismissed. You may file a criminal complaint for defamation under Sections 499–500 IPC if his false allegations harmed your company’s reputation or goodwill with clients or the OEM. You can also file a complaint under Section 211 IPC for making a false charge with intent to injure after you have been acquitted or discharged. If he has used abusive or threatening language towards your employees, a police complaint under Sections 506 (criminal intimidation) or 509 IPC (insult to modesty) can also be filed.

Practically, you should now focus on obtaining dismissal or quashing of the false case. Gather and preserve all relevant documents, including payment records, work completion reports, warranty service logs, and the OEM’s written statement supporting you. Once the proceedings are over, you can decide on filing defamation or malicious prosecution action to recover damages and discourage further harassment.

A well-prepared legal strategy and representation by a capable advocate will ensure that the case collapses quickly. If you wish, I can help you prepare a structured brief and legal note for your lawyer, along with relevant Supreme Court case citations for quashing proceedings.

1. Handle by maintaining calm, organizing all documents/evidence, and responding legally through proper channels without emotional reaction.

2. Self-representation is possible but not advisable due to complexity and lawyer’s influence; hiring a competent criminal lawyer is better.

3. Costs of defending cannot be easily recovered unless malicious prosecution is proven; file a counter-complaint or civil suit for damages if evidence of false case exists.

4. For harassment/defamation, you can file a criminal defamation suit or civil suit; gather proof of harassment and document incidents carefully.

bank will insist on production of original bank guarantee for closing the BG 

you can issue legal notice to customer to return the original BG as claim period is over and work has been completed 

you can file consumer complaint if it comes under service provider and consumer approach 

Legally speaking the since the bank's liability is fully discharged, the bank has no residual obligation, hence the bank has no legal justification to continue withholding of your fixed deposit or refuse cancellation. 

There is a RBI guidelines in this regard that the Banks must release margins/FDs and close guarantees after expiry of claim period if there is no invocation. The RBI circular:   DBOD No.  Dir. BC.68/13.03.00/2006-07 dated April 2007.

Therefore the bank cannot insist on FIR or customer's NOC once the liability has legally ceased.

If the bank is adamant or reluctant to respond, you can send a online complaint to the banking Ombudsman with all details and seek its intervention, if there is no respite from them too, you resort to legal action by first sending a legal notice demanding the return of original BG, and can state that you will claim damages for withholding it even after expiry followed by filing a civil suit accordingly. 

Bank’s liability ends after BG claim expiry, but they require FIR to protect against fraud before releasing FD. You should file an FIR against the customer for wrongful withholding of BG. Send a legal notice to the customer demanding return of BG. If bank delays, approach banking ombudsman or consumer court for relief. Take legal action against customer for withholding BG unfairly.

1. All are bound to follow the law , and being a lawyer he cannot refuse to pay the agreed amount , if you have given your services 

- You can engage a lawyer on your behalf , and don't think that your engaged lawyer will go against you. 

2. Better engaged a lawyer 

3. In case you get relief from the Court , then you can claim the amount which is due , but you cannot claim the Lawyers fees after filing a recovery case

4. You can file your separate case before the Consumer forum or Court for the recovery of your dues amount. 

Your primary goal is to get the criminal case dismissed at the earliest stage, and your secondary goal is to create a counter-threat to deter such behavior in the future.

1. How to handle this case as he is a lawyer so at his home turf & influential?

This is the core challenge. His influence is real, but it is not insurmountable with the right approach.

• Do Not Panic or Underestimate the Situation: A criminal case, even if false, is serious. It must be addressed with the full force of the law.

• Leverage Your Own Strengths: Your biggest strength is your documentation. You have completion certificates, payment receipts, communication records, and a clean chit from the OEM. This creates a formidable paper trail.

• The OEM's Stance is Your Shield: The fact that the OEM investigated and found no wrongdoing is a powerful piece of evidence. It immediately undermines his allegations of "cheating" and "overcharging." Ensure you have this in writing from the OEM.

• Focus on Procedure and Law, Not Just Influence: The judiciary, despite perceptions, relies on evidence and procedure. A judge will be skeptical of a case that has no prima facie evidence, especially when the complainant is a lawyer who should know better. Your strategy should be to highlight the procedural flaws and the complete lack of evidence.

• Anticipate His Moves: As a lawyer, he will know procedural loopholes. Your lawyer needs to be one step ahead, filing the right applications (for discharge, quashing, etc.) at the right time to prevent the case from dragging on.

2. Can we fight on this case ourselves without hiring a lawyer?

The short and unequivocal answer is NO. You absolutely must hire a lawyer.

Here’s why:

• Criminal Proceedings are Complex: A case under Section 173(4) CrPC means the police have filed a charge sheet. You are now in the trial stage. The procedures, filings, applications, and legal arguments are highly technical. A misstep can be costly.

• He is a Professional: You are fighting a professional on his turf. Going without a lawyer is like performing surgery on yourself because the patient is a doctor. It's a guaranteed way to lose.

• Protection for Your Employees: The case is not just against the company, but also against its directors and employees. You have a moral and legal responsibility to protect them. They will be terrified. A competent lawyer is their shield.

• Strategic Advantage: A good criminal lawyer will not just defend; they will go on the offensive by filing applications to quash the charges or discharge the accused at the earliest stage, saving you years of litigation.

Consider the legal fees as a necessary cost of protecting your business, your reputation, and the well-being of your employees. It is an investment in closing this chapter decisively.

3. How to recover costs incurred in fighting the false case?

This is a key concern. While recovering every rupee can be challenging, there are legal avenues to claim costs and damages.

• Costs in the Criminal Case: The criminal court has the discretion to award costs to the accused if it finds the case was false and vexatious. When you are acquitted, your lawyer can file an application seeking reimbursement of your legal costs from the complainant.

• File a Separate Civil Suit for Damages: This is your most potent weapon for recovery. Once the criminal case is dismissed, you can file a civil suit for:

  • Compensatory Damages: To recover the legal fees, court costs, and the time and resources spent fighting the case.

  • Punitive Damages: To punish him for malicious prosecution and deter him and others from such behavior.

• Grounds for the Civil Suit: Malicious Prosecution
  To succeed in a suit for malicious prosecution, you must prove four things:

  1. The case was filed by the lawyer.

  2. It was resolved in your favor (i.e., you got a discharge or acquittal).

  3. There was no probable cause for him to file the case (The OEM report is your star evidence here).

  4. He acted with malice (His intention to harass you and get free work is evident from his shouting, bad language, and the timing of the case after the OEM refused to support him).

While winning a malicious prosecution suit requires a high standard of proof, the threat of such a suit is a powerful bargaining chip.

4. What legal remedy do we have for harassment and defamation?

You have several options to turn the tables and show him that his actions have consequences.

• 1. Criminal Complaint for Defamation:

  • His act of filing a false criminal case alleging "cheating" and "fraud" is, in itself, a defamatory act aimed at damaging your company's reputation.

  • You can file a criminal case under Section 500 of the IPC for defamation. Given that he is a lawyer, such a case would be a significant professional embarrassment for him.

• 2. Criminal Complaint for Cheating and Intimidation:

  • You can file a counter-FIR against him for:

    • Section 420 IPC (Cheating): He took the services for two floors and then tried to evade payment for the third, using intimidation.

    • Section 506 IPC (Criminal Intimidation): His use of bad language, shouting, and the filing of a false case to coerce you constitutes intimidation.

    • Section 499/500 IPC (Defamation): As above.

  • Note: Getting the police to register an FIR against a lawyer can be an uphill task. Your lawyer may need to use legal pressure, such as filing an application under Section 156(3) CrPC to compel the police to register the FIR or investigate.

• 3. Complaint to the Bar Council:

  • This is a highly effective and specific remedy against an advocate. You can file a formal complaint with the State Bar Council where he is enrolled.

  • Grounds: His conduct amounts to "professional misconduct." Using his knowledge of the law to file a false and vexatious case to settle a civil dispute is an abuse of process and brings the legal profession into disrepute.

  • The Bar Council can issue warnings, suspend his license, or even debar him. For a practicing lawyer, this is a serious threat.

Recommended Action Plan

1. Immediately Hire a Competent Criminal Lawyer: Find a lawyer with experience in handling white-collar crimes and quashing of frivolous cases. Do not compromise on quality. Your first consultation should be to strategize for a discharge/quashing petition.

2. Compile a Master File: Gather every single document - contract, invoices, payment proofs, emails, WhatsApp messages, the OEM's clean chit report, and a detailed timeline of events.

3. Protect Your Employees: Assure your employees that the company is fully behind them and will bear all legal costs. Their morale is crucial.

4. Initiate Counter-Actions (After Consulting Your Lawyer):

   • File for discharge in the criminal case.

   • Draft a strong complaint to the Bar Council.

   • Prepare the groundwork for a civil suit for damages and a criminal defamation case, to be filed as soon as you get a favorable order in the current criminal case.

By taking a calm, documented, and legally aggressive stance, you can transform from a victim of harassment into a party that is defending its rights robustly. This will signal to the lawyer that his tactics will not only fail but will also become a significant liability for him.

Understanding the Situation

1. Bank Guarantee (BG) is a Contract: The BG is a contract between the bank and the beneficiary (your customer). You are the "applicant" who provided the security (the Fixed Deposit) to the bank to issue this contract.

2. Expiry is Key: The BG had a validity period until September 30, 2024. This means the customer could only make a valid claim on or before this date.

3. Claim Period is Over: The BG also had a claim period (often called the "claim invocation period") which ended on September 30, 2025. This is the window after the validity period during which the beneficiary could still submit a claim, provided the claim event (like a default) occurred during the validity period. This period is now also over.

4. Bank's Obligation is Extinguished: As of October 1, 2025, the bank's legal obligation under the BG is zero. The BG is a dead letter. It is no longer a legally enforceable instrument.

Why is the Bank (HDFC) Behaving This Way?

Banks are notoriously risk-averse and bureaucratic. The most likely reasons are:

• Internal Policy Over Legal Reality: They have a rigid internal policy that requires a formal release from the beneficiary or a "zero liability" certificate to close such files, regardless of the legal expiry.

• Fear of a Dispute: They are afraid that if they release your FD and the customer subsequently creates a fuss (even a legally invalid one), the bank will be caught in the middle. They are making you solve their potential problem.

• Laziness/Lack of Knowledge: The branch officials may not be fully conversant with the legal nuances and are following a standard "cover-your-back" procedure meant for active guarantees.

Your Legal Options and Action Plan

You need to escalate this logically and firmly. Do not get bogged down in the branch's suggested "file an FIR" procedure, which is completely misplaced here. An FIR is for a cognizable offense; your customer's refusal to return a physically expired document is a civil dispute, not a criminal one (unless there is an element of extortion, which is a higher bar).

Here is a step-by-step action plan:

Against the Customer:

Your leverage against the customer is limited but should be exercised.

1. Formal Legal Notice: Send a formal legal notice to the customer through your lawyer.

   • Content: Clearly state that the BG has expired both in validity and claim period. Demand the immediate, unconditional return of the original BG document. State that his refusal to return it and his attempt to use it to make unjustified demands amounts to wrongful restraint of your property and potentially coercion/blackmail.

   • Threat: Mention that if the BG is not returned within 15 days, you will be compelled to file a civil suit for recovery of damages (the blocked FD amount) and a criminal complaint for cheating and intimidation (Sections 415, 420, 506 IPC). The goal is to scare him into compliance, as a legal battle is not worth it for him over an expired BG.

Against the Bank (HDFC):

This is where your main focus should be, as they are the ones physically holding your funds.

Step 1: Formal Written Communication (Create a Paper Trail)

• Write a detailed email/letter to the Branch Manager and escalate it to the Regional/Zonal Head. Do not rely on verbal communication.

• Key Points to Include:

  • Reference the BG number and FD details.

  • Clearly state that the BG's validity period ended on 30.09.24 and the claim period ended on 30.09.25.

  • Attach a copy of the BG terms highlighting these dates.

  • State that as per the Indian Contract Act, the bank's liability under the BG stands extinguished.

  • Politely but firmly state that their request for an FIR is legally untenable and irrelevant, as the matter is a civil dispute with the customer, not a criminal issue against the bank.

  • Demand the immediate release of your Fixed Deposit and the closure of the BG, citing the bank's breach of its duty to you as its customer.

Step 2: Regulatory Escalation (If the Bank Does Not Respond)

• Banking Ombudsman: If the bank does not resolve your issue within 30 days of your formal complaint, file a complaint with the RBI Banking Ombudsman. This is a free and effective remedy.

  • Grounds: "Deficiency in service" and "unwarranted blockage of funds." The Ombudsman will easily understand that an expired BG must be released. The bank will likely be directed to release your FD and may be fined.

• HDFC Head Office: Send a copy of your complaint to the customer service head at HDFC's corporate office. The threat of an Ombudsman case often gets faster results.

Step 3: Legal Action (Last Resort)

• Civil Suit: You can file a civil suit against the bank for recovery of your FD amount with interest. Given the clear-cut facts, this would be a very strong case, and the bank would likely settle quickly to avoid costs and embarrassment.

• Writ Petition (Less likely): If the amount is very large and the bank's actions are egregious, one could consider a Writ Petition in a High Court for a direction to the bank to release the funds, arguing a violation of your fundamental right to trade (Article 19(1)(g)). However, the civil suit or Ombudsman route is more straightforward.

Summary of Answers to Your Questions

• Why is the Bank subjecting you to this procedure? Due to internal bureaucracy, risk aversion, and possibly a lack of knowledge at the branch level.

• Legal Options against the Customer: Send a legal notice demanding return of the BG and threatening civil and criminal action for wrongful restraint and coercion.

• Legal Options against the Bank:

  1. Internal Escalation: Write to senior bank management.

  2. Regulatory Complaint: File a case with the RBI Banking Ombudsman for "deficiency in service."

  3. Legal Suit: File a civil suit for recovery of your wrongfully held FD amount.

Immediate Recommendation: Start with Step 1 for both the customer and the bank simultaneously. Draft a strong legal notice to the customer and send a detailed, escalated email to the bank's senior officials. This dual pressure will likely resolve the issue without needing to go to the Ombudsman or court.

1. No , if you are appearing before the Court , then a warrant cannot be issued. 

2. It is the discretion of the Court , as the Court wanted to proceed with the case , hence you can engage a lawyer for your case 

3. Yes, your case is fit for quash the FIR 

If it is criminal case presence of accused is necessary on each date unless court grants exemption from personal appearance for the day 

engage a lawyer to appear on your behalf 

no need to go to HC

The answers are no to all your above questions 

1. As a party he may request court to issue warrant against the absent accused but the court generally don't issue warrant if the accused appears or being represented by lawyer

2. You can engage an advocate in the next hearing and your advocate will seek time for preparing defence.

3. The lawyer is appearing as party' in person hence there's no influence seen, at least from your contents.

You better challenge the case on merits.

1. No, a judge cannot issue a warrant just because the complainant asks, especially if you appear or seek adjournment. Warrants are for repeated non-appearance or evasion.

2. The judge can reject adjournments but not solely because you have no lawyer; self-representation is allowed.

3. Approaching Allahabad High Court can help if you face bias or unfair proceedings but involves higher cost and time; use it if local court acts unjustly.

In short: Appear in court, hire a lawyer ASAP, oppose improper warrants, and consider High Court only if local remedies fail.

Dear Client, in a situation where a criminal lawyer has filed a false cheating/overcharging case against your company under Section 173(8)/private complaint route, the strongest approach is to immediately engage a competent criminal lawyer, because fighting on your own is not advisable—he is influential in the system, familiar with procedures, and will tactically misuse process, whereas you need proper drafting of replies, anticipatory protections (if needed), and a strategy to show that this is purely a commercial dispute. You can move for quashing under Section 482 CrPC at the High Court by showing invoices, payments, OEM confirmation, and proof of his intent to avoid paying ₹1 lakh; additionally, after disproving his allegations, you may file for defamation (civil + criminal), malicious prosecution, and a compensation claim for harassment and business loss, but remember that recovery of your litigation cost is only possible through a separate damages suit, not automatically awarded by the court. Your employee who was mentally harassed may also file an independent complaint for criminal intimidation or abuse, supported by evidence. Overall, the case is defensible because it is a clear civil dispute artificially framed as a criminal case, and courts generally quash such misuse once records are produced. I hope this answer helps. For any more queries, do not hesitate to contact us.