IN THE HIGH COURT OF JUDICATURE AT PATNA
PRABHAT KUMAR SINGH, J.
Criminal Miscellaneous No.65850 of 2023
(17.10.2023)
Niranjan Kumar Awasthy & Ors. ... Petitioners
vs.
State of Bihar & Anr. ... Opp. Parties
Indian Penal Code, 1860 – Sections 406, 420, 467 and 468/34 – Criminal Procedure Code, 1973 – Section 438 – Criminal breach of trust, cheating and forgery – Anticipatory bail petition – Both parties entered into agreement for sale and purchase of land in question, but according to agreement, opposite party no. 2 failed to pay agreement amount – Opposite party no. 2 issued cheque in favour of one of co-accused but said cheque stood dishonoured due to insufficient fund – In this regard, informant has filed title suit against petitioners – Mere breach of contract does not give rise to criminal prosecution for cheating unless fraudulent or dishonest intention is shown right at beginning of transaction – Merely on allegation of failure to keep up promise will not be enough to initiate criminal proceedings – Anticipatory bail granted. (Paras 4 and 6)
ORDER
Heard learned counsel for the petitioners and learned A.P.P. for the State.
2. The petitioners apprehend their arrest in a case registered for the offence under Sections 406, 420, 467, 468/34 of the Indian Penal Code.
3. As per F.I.R., allegation against these petitioners is that they alongwith other co-accused persons, dishonestly by playing fraud, made a paper of 31 decimal of land, whereas they had only 18 decimal of land in their possession, for which, they received an amount of Rs. 1.5 crore from the informant and thus, cheated him. It is further alleged that when informant demanded his money, the accused persons refused to return the money.
4. It is submitted on behalf of petitioners that the dispute is purely of a civil nature. It is true that both parties entered into an agreement for sale and purchase of land in question, but according to agreement, the opposite party no. 2 failed to pay agreement amount. The opposite party no. 2 issued cheque in favour of one of the co-accused Niranjan Kumar Awasthi, but the said cheque stood dishonoured due to insufficient fund. It is further submitted that in this regard, the informant has filed a title suit against petitioners, vide Title Suit No. 1070 of 2022 in the court of learned Sub Judge – I, Gaya. It is further submitted that mere breach of contract does not give rise to criminal prosecution for cheating unless fraudulent or dishonest intention is shown right at the beginning of the transaction. Merely on the allegation of failure to keep up promise will not be enough to initiate criminal proceedings.
5. Learned A.P.P. for the State has opposed the bail petition.
6. Considering the aforesaid facts and circumstances, let the above named petitioners, in the event of their arrest/surrender within a period of six weeks from today, be enlarged on bail on furnishing bail-bonds of Rs. 10,000/- (ten thousand) each with two sureties of the like amount each to the satisfaction of learned Judicial Magistrate 1st Class, Gaya in connection with Guraru P.S. Case No. 231 of 2022, subject to condition as laid down under Section 438(2) of the Code of Criminal Procedure.
Criminal prosecution for breach of contract requires evidence of fraudulent intent from the inception; mere allegations of non-fulfillment do not suffice to establish offences under IPC sections rela....
Mere breach of contract does not amount to cheating under IPC; dishonest intent must be proven to establish criminal liability.
Failure to honour land sale agreement, with buyer aware of tenancy restrictions and advance returned, does not constitute cheating or criminal breach of trust absent dishonest intention at inception ....
Fraudulent inducement and dishonesty must be established to constitute cheating under IPC; a mere breach of contract does not suffice.
To establish cheating under IPC, fraudulent intent must exist at the inception of the transaction; mere breach of contract does not constitute a criminal offence.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.