Case Note & Summary
The present appeals arose from a complaint filed by the second respondent (complainant) regarding the medical treatment of his mother at Narayana Multispecialty Hospital, Barasat, Kolkata. The patient was admitted on 13.02.2021 for a fractured femur, underwent successful surgery on 15.02.2021, and was discharged on 19.02.2021. The complainant paid Rs. 1,71,130/- out of a total bill of approximately Rs. 1,94,307.84/- after discounts. After discharge, the complainant raised concerns about billing discrepancies and sought medical records. On 23.02.2021, the hospital issued a revised bill reflecting a refund of Rs. 2,500/- for an HRCT test that was proposed but not conducted, and communicated this to the complainant via email. The complainant then filed a complaint before the Judicial Magistrate, Barasat, alleging that the hospital intentionally charged for a test not performed and that medical documents were not supplied promptly, and that certain hospital personnel behaved improperly and issued threats. The Magistrate issued process against the accused persons under Sections 406, 420, 120B IPC and Section 34 of the West Bengal Clinical Establishments Act, 2017. The appellants filed a petition under Section 482 CrPC before the High Court for quashing. The High Court, instead of considering whether any offence was made out, set aside the summoning order and remanded the matter to the Magistrate to reconsider the complicity of accused persons living in separate territorial jurisdictions, while making a passing comment that an offence was made out. The Supreme Court held that the allegations did not satisfy the ingredients of criminal breach of trust (no entrustment or fiduciary obligation), cheating (no dishonest intention from inception, as the hospital offered to refund), or criminal conspiracy (no meeting of minds). The Court found that the dispute was essentially civil in nature and that the criminal proceedings were an abuse of process. Consequently, the Supreme Court allowed the appeals, set aside the High Court's order, and quashed the complaint and all proceedings arising therefrom.
Headnote
A) Criminal Law - Criminal Breach of Trust - Section 405 IPC - Ingredients - For an offence under Section 405 IPC, there must be entrustment of property, a fiduciary obligation, and dishonest misappropriation or conversion - In the present case, the amount of Rs. 2,500/- was paid as part of the hospital bill; there was no entrustment for a fiduciary purpose, and the hospital offered to refund the amount upon the mistake being pointed out - Held that the foundational ingredients of Section 405 IPC are not satisfied (Paras 11). B) Criminal Law - Cheating - Section 420 IPC - Dishonest Intention - For an offence under Section 420 IPC, there must be deception from the very beginning and dishonest intention at the time of inducement - The billing discrepancy for an HRCT test that was not performed was an inadvertence; the hospital promptly offered to refund the amount - Held that the allegation of cheating is completely misplaced (Paras 12). C) Criminal Law - Criminal Conspiracy - Section 120B IPC - Meeting of Minds - For an offence under Section 120B IPC, there must be a prior agreement or meeting of minds to commit an illegal act - Where foundational offences are not disclosed, a charge of conspiracy cannot stand independently - The complaint contained no averment of any concerted plan among the accused - Held that the allegation of criminal conspiracy is unsustainable (Paras 13). D) Criminal Procedure - Quashing of Proceedings - Section 482 CrPC - Inherent Powers - The High Court can quash criminal proceedings when the allegations, even if taken at face value, do not prima facie constitute any offence - The High Court erred in remanding the matter without properly examining whether the allegations made out any offence, and its observation that an offence was made out was without basis - Held that the proceedings are an abuse of process and are quashed (Paras 10, 15-16).
Issue of Consideration
Whether the allegations in the complaint prima facie disclose the commission of offences under Sections 406, 420, 120B IPC and Section 34 of the West Bengal Clinical Establishments (Registration, Regulation and Transparency) Act, 2017, and whether the High Court erred in remanding the matter without properly examining the facts.
Final Decision
The Supreme Court allowed the appeals, set aside the impugned judgment and order of the High Court dated 16.05.2023, and quashed the complaint being Complaint Case No. C-533 of 2021 pending before the Judicial Magistrate, 2nd Court, Barasat, North 24 Parganas, along with all proceedings arising therefrom.
Law Points
- Ingredients of criminal breach of trust under Section 405 IPC require entrustment
- fiduciary obligation
- and dishonest misappropriation
- Ingredients of cheating under Section 420 IPC require deception and dishonest intention from inception
- Criminal conspiracy under Section 120B IPC requires meeting of minds and cannot stand if foundational offences are not made out
- High Court's power under Section 482 CrPC to quash proceedings when allegations do not prima facie constitute any offence
