Back
SHAMPA DUTT (PAUL)
Reatox Resorts And Hotels Pvt. Ltd. – Appellant
Versus
SREI Equipment Finance Ltd. – Respondent
JUDGMENT :
SHAMPA DUTT (PAUL), J.
1. The present revisional application has been preferred against an order dated 08.02.2022 passed by the learned Metropolitan Magistrate, 10th Court, Calcutta in complaint case no. C/S-95394/2021 taking cognizance against the petitioners/accused persons under Sections 406/420/506 read with Section 120B of the Indian Penal Code, 1860 along with a prayer for quashing of the entire proceeding in respect of the petitioners herein.
2. Vide the order under revision the learned Magistrate examined the complainant and witnesses under Section 200 of the Code of Criminal Procedure and issued Process against the accused persons.
3. The case of the petitioners is as follows:-
ii. There was an agreement between the petitioner no.1 and the opposite party no.1 dated 17.10.2016 in the form of a letter dated 17.10.2016 mentioning the details of amounts agreed to be lent by the opposite party no.1 to the petitioner no.1 with the details of the assets of the petitioner, interest rate and number of installments for a sum of Rs.1,14,00,000/-.
iii. Under the said agreement the petitioners agreed to repay the said loan
Allegations of financial misconduct must establish criminal intent; mere breach of contract does not constitute a criminal offence under IPC sections 406 and 420.
The distinction between civil disputes and criminal offences is vital; mere breach of contract does not constitute criminal cheating without evidence of fraudulent intent.
Civil Disputes cannot be given colour of criminal cases as a pressure tactics.
The court held that allegations of fraud and misappropriation of funds, when inter se and with no public implications, are arbitrable under the Arbitration and Conciliation Act, 1996.
Criminal proceedings cannot be maintained without sufficient evidence, especially when initiated after significant delay post-arbitral award, indicating potential malafide intent.
Main Legal Point
A breach of contract does not constitute cheating unless fraudulent intent is proven at the outset of the agreement, as established in relevant legal precedents.
Dishonest or fraudulent intention must be present at the inception of a transaction to establish offences of cheating and criminal breach of trust; mere breach of contract does not constitute a crimi....
Point of Law : Agreement was terminated by the complainant himself and the dispute before the Arbitrator was sought by the complainant himself. Therefore, there can be no question of an intention to ....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
