IN THE HIGH COURT OF BOMBAY, AURANGABAD BENCH
VIBHA KANKANWADI, J.
Babu Dadasaheb Gavhane – Petitioner
Versus
Shailesh Gopal Dahad and Another. – Respondents
920 Criminal Writ Petition No.380 Of 2022
Decided On : 08-06-2022
Indian Penal Code, 1860 - Section 406, 420 - Offence of cheating - For quashing proceedings - For setting aside order regarding issuance of process against petitioner - Held, hen there is suppression of facts as well as fact that development agreement itself is taking care of interest of both the parties and giving rise for specific performance or recovery to other side, action of issuing process by learned Magistrate is wrong - Since ingredients of offence under Section 406 as well as Section 420 of IPC are not made out, certainly proceedings deserve to be quashed - An accused under these stipulations where remedy is civil in nature, cannot be asked to face trial, and therefore, petition deserves to be allowed - Writ petition disposed of.
JUDGMENT :
1. Rule. Rule made returnable forthwith. By consent, heard finally.
2. Present writ petition has been filed by the original accused for quashing the proceedings against him i.e. Regular Civil Suit No.420 of 2020 pending before the learned Judicial Magistrate First Class, Aurangabad, for the offence punishable under Section 406, 420 of the Indian Penal Code and also for setting aside the order dated 28-07- 2021 regarding issuance of process against the petitioner.
3. Respondent No.1 is the original complainant. The notice issued to respondent No.1 was received by his father and the report says that the complainant had gone out of station and then the father accepted the notice, so also the server was allowed to contact respondent No.1 on mobile and thereby the intimation has been given about the notice. Since the notice has been served on the adult male member of the family of respondent No.1, it is good service. He has not appeared.
4. Heard learned Advocate for the petitioner as well as learned APP for respondent No.2.
5. It has been vehemently submitted on behalf of the petitioner that the complainant has filed the said private complaint Regular Criminal Case No.420 of 2020 before learned Judicial Magistrate First Class, Aurangabad with ulterior motive. Even if we take the contents of the FIR as it is, yet they would give rise at the most to a civil dispute and there is no question of any criminality involved in the same. The complainant has suppressed material facts and it appears that the order of issuance of process came to be passed by the learned Magistrate in absence of those facts which are material. The learned Advocate for the petitioner has taken this Court through the contents of the complaint, agreement of development entered into between complainant and the present petitioner on 20-05-2017, the irrevocable general power of attorney and the sale deeds as well as form No.6 effecting the mutation after the sale transactions in respect of the property. It has been then submitted that in view of Clause No.9 and 14, the owner i.e. the present petitioner had the right to sale Flat No.1 to any third party and accordingly it has been sold by the petitioner. However, as regards Flat No.4 and 10 are concerned, there was a rider. The owner had received security deposit of Rs.60 lakh which was for the part of the performance of the contract, but while mutually understanding the parties agreed that the owner will get Flat No.1, 4 and 10 and then as regards Flats No.4 and 10 are concerned, it was decided that with the consent of the developer, the owner can sell those flats. However, he will have to give amount of Rs.32 lakh and 28 lakh respectively for Flats No.4 and 10 to the developer and then only there will not be any question of repayment of security deposit. However, further Clause No.14 stipulated that owner will have to repay the security deposit of Rs.60 lakh immediately after the completion of the construction and again a rider was given that if the owner fails, then the developer had the right to sell Flat No.4 and 10 to any third party to recover the deposit amount and no consent or NOC would be required from the owner. The occupancy certificate was issued on 07-10-2019, and thereafter, the developer has sold Flat No.4 on 24-06-2021 to one Dr. Vilas Wangikar and Dr. Shailaja Wangikar. Flat No.10 has been sold to one Sham Naik. The sale deed between the developer and Wangikar would show that the consideration amount was Rs.16,10,000/-. This fact has been suppressed by the complainant from the learned Magistrate. When the developer has used his right under Clause No.14 of the development agreement, he could have insisted upon the performance of the contract only as per that agreement and not by way of a complaint. There is no question of any breach of trust or cheating by the petitioner/accused. The order of issuing process against the petitioner is wrong and illegal.
6. Reliance has been placed on the de
Section 405 IPC defines criminal breach of trust.
The court established that inadequate notice to a complainant in criminal proceedings constitutes an abuse of process, and emphasized the distinction between civil and criminal disputes.
Breaches of commercial agreements do not constitute criminal offenses unless fraudulent intent is established at the outset, reinforcing that civil disputes should not be converted into criminal matt....
Criminal proceedings should not be initiated for disputes that are fundamentally civil in nature, and the essential ingredients of the alleged offenses must be clearly established for prosecution und....
Mere breach of contract cannot constitute cheating or criminal breach of trust without evidence of fraudulent intent; suppression of material facts by the complainant invalidates the proceedings.
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