IN THE HIGH COURT OF GAUHATI (ITANAGAR BENCH)
Parthiv Jyoti Saikia, J.
Manjit Gurung and Another - Petitioners
Versus
State of Arunachal Pradesh and Another - Respondents
Crl. Petn. No. 46 of 2020
Decided On : 19-04-2021
Indian Penal Code, 1860 – Section 420 – Criminal Procedure Code, 1973, Section 482 —Quashing of First Information Report — Cheating and dishonestly inducing delivery of property – Commercial transaction – Petitioners intended to buy one Truck from the informant. They were to pay only by cheque and the remaining amount of only in cash – Cheque was issued and the Truck was taken away – When the informant presented the cheque in the Bank for encashment, it was refused because of insufficient fund – Held, After going through the materials available in the record including the FIR, this court finds that it cannot be said that the complaint does not disclose the commission of an offence – Facts narrated in the FIR reveal a commercial transaction but that is hardly any reason for holding that the offence of cheating would elude from such transaction. Many a times, the offence of cheating is committed in the course of commercial transaction – Avoiding prolongevity, but at the risk of repetition, it must be stated that the power under section 482 of the CrPC is to prevent the abuse of the process of court and to advance the cause of justice. This power is not meant to overshadow the powers of law enforcement or courts acting under the provisions of the CrPC – Criminal petition dismissed, disposed of.
ORDER :
1. Heard the learned counsel, Mr. K. Lollen, appearing for the petitioners. Also heard the learned Public Prosecutor, Mr. J. Tsering, appearing for the State of Arunachal Pradesh.
2. This is an application under section 482 of the CrPC praying for quashing of the FIR in Longding P.S. Case No. 43/2020, registered under section 420 of the Penal Code, 1860.
3. The 2 petitioners intended to buy one Truck from the informant. They were to pay Rs. 2,50,000 only by cheque and the remaining amount of Rs. 15,000 only in cash. The cheque was issued and the Truck was taken away. When the informant presented the cheque in the Bank for encashment, it was refused because of insufficient fund. Therefore, the informant filed the FIR alleging that the petitioners had cheated him.
4. The learned counsel, Mr. Lollen, appearing for the petitioners, has submitted that this is a pure civil dispute which has been given the colour of a criminal case just to harass the petitioners. The learned counsel, Mr. Lollen, has relied upon a judgment of the hon'ble Supreme Court that was rendered in State of Haryana v. Bhajan Lal, 1992 Supp (1) SCC 335. The learned counsel has further relied upon paragraph 102 of the said judgment, which is reads as under—
(1) Where the allegations made in the first information report or the complaint, even if they are taken at their face value and accepted in their entirety do not prima facie constitute any offence or make out a case against the accused.
(2) Where the allegations in the first information report and other materials, if any, accompanying the FIR do not disclose a cognizable offence, justifying an investigation by police officers under section 156(1) of the Code except under an order of a magistrate within the purview of section 155(2) of the Code.
(3) Where the uncontroverted allegations made in the FDR or complaint and the evidence collected in support of the same do not disclose the commission of any offence and make out a case against the accused.
(4) Where, the allegations in the FIR do not constitute a cognizable offence but constitute only a non-cognizable offence, no investigation is permitted by a police officer without an order of a Magistrate as contemplated under section 155(2) of the Code.
(5) Where the allegations made in the FIR or complaint are so absurd and inherently improbable on the basis of which no prudent person can ever reach a just conclusion that there is sufficient ground for proceeding against the accused.
(6) Where there is an express legal bar engrafted in any of the provisions of the Code or the concerned Act (under which a criminal proceeding is instituted) to the institution and continuance of the proceedings and/or where there is a specific provision in the Code or the concerned Act, providing efficacious redress for the grievance of the aggrieved party.
(7) Where a criminal proceeding is manifestly attended with mala fide and/or where the proceeding is maliciously instituted with an ulterior motive for wreaking vengeance on the accused and with a view to spite him due to private and personal grudge.”
5. Mr. Lollen, the learned counsel, further relied upon another recent judgment of the Supreme Court t
Mere non-payment in business supply transaction does not constitute cheating under IPC Section 420 absent proof of dishonest inducement at inception; such civil disputes warrant FIR quashing to preve....
The main legal point established in the judgment is that the inherent power under section 482 of the Criminal Procedure Code should be sparingly used and only in exceptional cases to prevent abuse of....
Criminal proceedings cannot be initiated for mere breach of contract; there must be evidence of fraudulent intent from the outset for an offence under Sections 420 and 120-B IPC.
The main legal point established in the judgment is that if the contents of the FIR disclose commission of any offence, the same cannot be quashed under Section 482 Cr.P.C.
Criminal proceedings cannot be used as a shortcut for civil remedies, and the ingredients of the offence of cheating must be prima facie discernible for the continuation of criminal proceedings.
The court established that civil disputes should not be cloaked as criminal offenses, emphasizing the need for clear evidence of criminal intent to sustain charges of cheating.
The distinction between breach of contract and criminal cheating requires proof of fraudulent intent at the transaction's inception.
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