The main legal point established in the judgment is that a mere breach of contract does not give rise to criminal prosecution for cheating unless fraudulent or dishonest intention is shown right from the beginning of the transaction.

JUDGMENT :

A.V. RAVINDRA BABU, J.

1. This Criminal Appeal, under Section 374(2) of the Code of Criminal Procedure, 1973 (for short “the Cr.P.C.”) is filed by the appellants, challenging the judgment dated 16.04.2010, in Sessions Case No. 29/S/2009, on the file of Special Judge for Trial of Offences under the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989, Guntur (for short “the learned Special Judge”). The present appellants faced charges under Section 3(1)(x) of the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989 (for short “the SCs & STs Act”) under Sections 506, 417 of the Indian Penal Code, 1860 (for short “the IPC”).

2. The learned Special Judge acquitted the appellants for the charges under Section 3(1)(x) of the SCs & STs Act and under Section 506 of the IPC, but found them guilty of the charge under Section 417 of the IPC, convicted them under Section 235 (2) of Cr.P.C. The learned Special Judge after questioning A.1 and A.2 about the quantum of sentence and considering that A.1 as on date of the judgment is aged about 60 years and A.2 is aged about 72 years, sentenced them to suffer Simple Imprisonment for six (6) months each and to pay a fine of Rs.2,000/- each, in default to suffer Simple Imprisonment for 15 days each for the offence under Section 417 of the IPC.

3. The parties to this Criminal Appeal will hereinafter be referred to as described before the learned Special Judge, for the sake of convenience.

4. The case of the prosecution in brief, as set out in the charge-sheet filed by the Sub-Divisional Police Officer, Guntur in Crime No. 125 of 2008 of Pattabhipuram Law and Order Police Station, alleging the offence under Section 3(1)(x) of the SCs & STs Act and Section 506 of the IPC is as follows:

(i) The de-facto complainant Gundabattuni Malakondaiah-PW.1 got substantial amount of Rs.7,00,000/- on his retirement. He belongs to Hindu Mala-Scheduled Caste and Gundabathuni Adilakshmi-PW.2 is his wife. The accused were neighbours and known to them very intimately, who came to know about the receipt of amounts towards retirement benefits by PW.1 and approached PW.1 and also promised to give 24% p.a., interest on the amount and will repay the same as and when demanded and believing the same, PW.1 gave Rs.7,00,000/- to the accused and A.1 executed two promissory notes for Rs.1,00,000/- each under Exs.P7 and P8 and his wife-A2 executed five promissory notes under Exs. P2 to P6, each for Rs.1,00,000/-, repayable with interest at 24% p.a., in favour of PW.1 and his wife i.e., PW.2 and children and in spite of repeated demands for repayment, the accused were postponing the same.

(ii) The son of the accused has also executed two promissory notes and PW.1 with fond hope of securing money for performing his daughter’s marriage kept money with the accused and they are making repeated demands and accused was postponing the same, on some pretext or other. Then, they took mediators namely Goli Venkata Ramana Rao-PW.3, Arekuti Prasada Reddy-PW.4 to the house of accused and demanded to pay the monies and accused replied that they will pay it shortly i.e., after couple of days. Hence, again on 04.07.2008, PWs. 1 and 2 went to the house of accused to get the money. The accused did not pay the money as promised before the elders. On the contrary, they abused and insulted them in public view and threatened them with dire consequences and having left with no option, PW.1 went to the police station and presented Ex.P1 complaint at 10.30 PM, which was registered as a case in Cr.No. 125/2018. Sub Divisional Police Officer, as per the directions of Superintendent of Police, Guntur under Ex.P15 proceedings, took up investigation, collected the promissory notes and also various signatures of the accused from the bank and sent them to Hand Writing Expert and confirmed that Exs.P2 to P8/ pronotes, were executed by accused. Further on 04.07.2008 when PWs. 1 and 2 went to the house of accused, bot