1. This Criminal Petition, under Section 482 Cr.P.C. is filed by the petitioners/A.1 to A.4 to quash the proceedings in Crime No. 500/2011 of Vijayawada City Police Station I Town (Law and Order), Vijayawada, registered against them for the offences punishable under Sections 403 and 420 IPC.

2. The brief facts of case are that the 2nd respondent/complainant and his brother, K. Ravi Kumar are doing Gold business under the name and style of Swathi Jewellery at Sivalayam Street, Vijayawada, and A.1 and A.2 were working with the complainant and his brothers shop. After some time, A.1 and A.2 started a new business in Gold with the financial support and aid of the complainant and his brother. A.1 and A.2 took two Gold Biscuits and cash of Rs. 32,00,000/- from the complainants brother. In that connection, they issued some cheques in the name of the complainant and his brother along with some pro-notes and promised to repay the said amounts within a short period. Inspite of repeated demands, A.1 and A.2 failed to repay the said amount and it was revealed that they are not maintaining any Bank Account since the date of transaction. A.1 and A.2 with a mala-fide intention and motivation with the aid and support of A.3 and A.4 have transferred some amounts and property for their own business. Thus, they have misappropriated the said amounts and failed to repay the same to the complainant and his brother. Further, A.1 and A.2 took the signature of the brother of the complainant as a surety to one of the chits with Margadarsi Chit and A.1, having become the successful bidder of the said chit and received the prize amount, did not repay the chit instalments, due to which the Margadarsi Chit authorities issued notice to the brother of the complainant, being one of the surety, thus A.1 and A.2 have cheated the complainant. With these allegations, the 2nd respondent/ complainant has lodged a private complaint against A.1 to A.4 on the file of the Chief Metropolitan Magistrate Court, Vijayawada, and on reference, the same was registered as Crime No. 500/2011 of Vijayawada City Police Station I Town (Law and Order), Vijayawada, for the offences punishable under Sections 403 and 420 IPC. Aggrieved by the same, the petitioners have filed the present Criminal Petition seeking to quash the proceedings in the above crime.

3. Heard learned counsel for the petitioners/A.1 to A.4 as well as the learned Additional Public Prosecutor appearing for 1st respondent State of Andhra Pradesh and perused the material on record.

4. Learned counsel for the petitioners submits that the contents of the complaint are all civil in nature and they do not attract the provisions under Sections 403 and 420 IPC and, therefore, the petitioners are entitled for quashing of the proceedings against them in Crime No. 500/2011.

5. On the other hand, the learned Additional Public Prosecutor appearing for 1st respondent State submits that the petitioners with a dishonest and mala-fide intention have misappropriated the cash and property of the complainant and, therefore, they are liable for punishment for the offences under Sections 403 and 420 IPC.

6. Section 403 of IPC reads as under:

“403. Dishonest misappropriation of property:- Whoever dishonestly misappropriates or converts to his own use any movable property, shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both.”

7. From the above provision, it is clear that the words converts to his own use necessarily connote the use or dealing with the property in derogation of the rights of the owner. The said proposition was laid down in Ramaswami Nadar vs. State of Madras, AIR 1958 SC 56. The word dishonestly and misappropriate are necessary ingredients of an offence under Section 403 IPC.

8. Further, any dispute being about recovery of money is purely of civil nature and hence a criminal complaint regarding such a transaction is not maintainable. The said proposi