Calcutta, May 30: The Calcutta High Court has quashed an FIR of Ram Rupai Balaji Limited, a unit of the city- based Balaji Group, against Danieli Engineering India Limited.

Ram Rupai Balaji had filed the FIR against Danieli and its directors for cheating and criminal breach of trust on the ground of not supplying equipment as per the terms of a civil contract.

The legal battle started when Ram Rupai filed a civil suit for damages and breach of contract against Danieli India, owned by the $4.6-billion Italian major, Danieli & C, in 2006 for not completing the supply of equipment and not commissioning the equipment in terms of the civil contract.

Danieli India had challenged the FIR in the Calcutta High Court and sought its quashing.

Danieli had said they could not fulfil the contract obligations because of non payment of more than Rs 4 crore by Ram Rupai.

The Calcutta High Court had refused to give any order of injunction against Danieli India then.

Ram Rupai then registered the FIR against Danieli India.

Representing Danieli India, Suhail Dutt and Abhixit Singh of advocate firm Titus & Co had argued that criminal proceedings cannot be permitted to be invoked by litigants who had failed to get any relief in the civil courts.

The court said the growing tendency in business circles to convert purely civil disputes into criminal cases with the motive of extracting money to settle the criminal proceeding should be condemned.

In its order quashing the FIR, the Calcutta High Court said the FIR did not disclose the commission of any offences by Danieli India or its directors.