Case Note & Summary
The petitioners, Sourish Bose and Deepanvita Ghosh, filed a criminal petition under Section 482 of the Code of Criminal Procedure, 1973 (CrPC) and Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, seeking quashing of FIR in Crime No.153/2017 registered at Hennur Police Station, Bengaluru, for offences punishable under Section 420 read with 34 of the Indian Penal Code, 1860 (IPC). The FIR led to C.C.No.50666/2019 pending before the XI Additional Chief Metropolitan Magistrate, Bengaluru. The dispute arose from an agreement to sell a property between the petitioners (accused) and the second respondent (complainant). The complainant alleged that the petitioners failed to execute the sale deed despite receiving part payment, thereby cheating him. The petitioners contended that the dispute was purely civil in nature, as the agreement was not performed due to disputes over the property's title and other issues, and there was no fraudulent intention at the inception of the agreement. The court examined the allegations in the FIR and found that they did not disclose the essential ingredients of cheating under Section 420 IPC, namely, deception and dishonest inducement to deliver property. The court noted that the dispute was essentially a breach of contract, which is a civil matter, and criminal proceedings were initiated as a coercive measure. Relying on the principle that criminal law should not be used to settle civil disputes, the court held that continuing the proceedings would be an abuse of the process of law. Accordingly, the court quashed the FIR and all subsequent proceedings.
Headnote
A) Criminal Law - Cheating - Section 420 IPC - Quashing of FIR - Dispute arising from non-performance of a sale agreement - Court held that mere breach of contract does not constitute cheating unless there is fraudulent or dishonest intention at the time of inception - The allegations in the FIR did not disclose any deception or inducement to deliver property - Held that continuation of proceedings would be an abuse of process of law (Paras 3-10). B) Criminal Procedure Code - Inherent Powers - Section 482 CrPC - Abuse of Process - Where the dispute is predominantly civil in nature and criminal proceedings are initiated to pressurize the opposite party, the High Court can quash the FIR to prevent abuse of process - Held that the criminal proceedings were liable to be quashed (Paras 10-12).
Issue of Consideration
Whether the FIR and proceedings for offences under Section 420 read with 34 IPC can be quashed when the dispute is essentially civil in nature and lacks ingredients of criminal cheating.
Final Decision
The court allowed the petition and quashed the FIR in Crime No.153/2017 registered at Hennur Police Station, Bengaluru, and all proceedings in C.C.No.50666/2019 pending before the XI Additional Chief Metropolitan Magistrate, Bengaluru.
Law Points
- Civil dispute not to be criminalised
- Section 420 IPC requires fraudulent intention at inception
- breach of contract not cheating
- quashing under Section 482 CrPC for abuse of process
