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SUPREME COURT OF INDIA
SANJIV KHANNA, BELA M. TRIVEDI, JJ.
Neetu Singh & Ors. – Appellants
VERSUS
State Of U.P. & Ors. – Respondents
Criminal Appeal No. 365 OF 2022 (Arising Out Of SLP (Crl.) No.783 of 2020)
Decided On : 07-03-2022
Criminal Offence - Failure to Pay Rent - The court held that failure to pay rent may have civil consequences but is not a penal offence under the Indian Penal Code. The mandatory legal requirements for the offence of cheating and misappropriation under the IPC were found to be missing, leading to the quashing of the First Information Report.
Fact of the Case:
The court found that no criminal offence was made out even if the factual assertions in the complaint were accepted. The First Information Report was quashed, and the appellants were allowed to vacate the property, with the question of when the appellant vacated the property and arrears of rent left open to be decided in civil proceedings.
Finding of the Court:
The court concluded that no criminal offence was made out, and the First Information Report was quashed. The appellants were allowed to vacate the property, and the question of arrears of rent was left open to be decided in civil proceedings.
Issues: The main issue was whether the failure to pay rent constituted a criminal offence under the Indian Penal Code.
Ratio Decidendi: The court found that failure to pay rent may have civil consequences but is not a penal offence under the Indian Penal Code, as the mandatory legal requirements for the offence of cheating and misappropriation were missing.
Final Decision: The impugned order was set aside, and the appeal was allowed, quashing the First Information Report. The question of when the appellant vacated the property and arrears of rent was left open to be decided in civil proceedings.
ORDER
1. Leave granted.
2. Heard the learned counsel for the parties.
3. We are of the opinion that no criminal offence is made out, even if we accept the factual assertions made in the complaint, which was registered as the First Information Report. Failure to pay rent may have civil consequences, but is not a penal offence under the Indian Penal Code, 1860 (for short, “IPC”). Mandatory legal requirements for the offence of cheating under Section 415 and that of misappropriation under Section 403 IPC are missing.
4. In view of the aforesaid position, the First Information Report is quashed.
5. On the question being put to the counsel for the appellants, it has been stated that the appellants have vacated the property. Learned counsel for the respondent No.3 disputes this statement, and states that the appellants have not handed over physical vacant possession of the property to respondent No.3.
6. Be that as it may, in view of the statement made by the learned counsel for the appellants, respondent No.3 is at liberty to enter into possession of the property without violating any law.
7. Learned counsel for respondent No.3 states that there are huge arrears of rent which have to be recovered. It will be open to respondent No.3 to take recourse to such civil remedy as is available to him in law.
8. Recording the above, the impugned order is set aside and the appeal is allowed quashing the First Information Report. The question when the appellant vacated the property and arrears of rent, etc. are left open to be decided in civil proceedings.
9. All pending applications are also disposed of.
Failure to pay rent may have civil consequences but is not a penal offence under the Indian Penal Code.
The main legal point established in the judgment is that allegations of non-payment of rent did not constitute criminal offences under the Indian Penal Code.
FIR quashed under Section 482 CrPC post amicable compromise despite non-compoundable offences, following Supreme Court guidelines.
Merely failing to pay rent does not amount to criminal cheating without evidence of dishonest intention.
The main legal point established in the judgment is the requirement for clear and distinct evidence to establish criminal offences, the distinction between civil disputes and criminal cases, and the ....
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