ORDER :

1. Leave granted.

2. With the consent of the learned counsel for the parties, we have taken up the appeal for hearing. Right to file reply is waived.

3. We have heard learned counsel for the parties, including counsel for the complainant/informant, who has filed an application seeking impleadment, which is allowed impleading him as respondent no. 2 to the present appeal.

4. Prima facie, in our opinion, mere breach of contract does not amount to an offence under Section 420 or Section 406 of the Indian Penal Code, 1860,¹[For short, “IPC”.], unless fraudulent or dishonest intention is shown right at the beginning of the transaction.,²[Sarabjit Kaur v. State of Punjab and Another, (2023) 5 SCC 360.] This Court has time and again cautioned about converting purely civil disputes into criminal cases.,³[Indian Oil Corpn. v. NEPC India Ltd. and Others, (2006) 6 SCC 736; Vijay Kumar Ghai and Others v. State of West Bengal and Others, (2022) 7 SCC 124.] Any effort to settle civil disputes and claims, which do not involve any criminal offence, by applying pressure through criminal prosecution should be deprecated and discouraged.,⁴[Indian Oil Corpn. v. NEPC India Ltd. and Others, (2006) 6