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2025 Supreme(Gau) 556

IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM & ARUNACHAL PRADESH) 
Kaushik Goswami, J.
Sri Brajendra Das, (50 years), Son of Late Niranjan Das - Appellant 
Vs.
The State of Assam - Respondent 
Criminal Petition No.1089 of 2018
Decided On : 07.03.2025



Advocates:
Advocate Appeared:
For the Appellant : Ms. B. Goswami.
For the Respondent:Mr. P.S. Lahkar for respondent No.1.

A mere breach of contract does not constitute criminal cheating unless fraudulent intent is established at the outset of the transaction.

Headnote:(A) Code of Criminal Procedure, 1973 - Sections 482, 401, 397 - Indian Penal Code, 1860 - Sections 420, 406 - Quashing of cognizance - The petitioner sought to quash the order taking cognizance of offences under Sections 420 and 406 IPC, arguing that no criminal offence was made out. The court found that the allegations did not indicate fraudulent intent or misappropriation, thus quashing the proceedings. (Paras 4, 10, 21, 23)

(B) Criminal breach of trust - The court emphasized that mere breach of trust does not constitute a criminal breach unless fraudulent intent is established. (Paras 20, 21)

Facts of the case:
The complainant alleged that the petitioner accepted an advance payment for a plot of land but failed to complete the sale, leading to claims of cheating. (Paras 5, 17)

Findings of Court:
The court determined that the allegations did not support a case of cheating or breach of trust, leading to the quashing of the Magistrate's order. (Paras 22, 23)

Issues: The main issue was whether the allegations in the complaint constituted a criminal offence under IPC Sections 420 and 406. (Paras 9, 21)

Ratio Decidendi: The court ruled that a mere breach of contract does not equate to criminal cheating unless there is evidence of fraudulent intent at the outset of the transaction. (Paras 20, 21)

Result: The order dated 14.08.2018 and the proceedings in C.R. Case No.2343c/2016 are quashed.

JUDGMENT & ORDER :

Heard Ms. B. Goswami, learned counsel appearing for the petitioner. Also heard Mr. P.S. Lahkar, learned Additional Public Prosecutor appearing for the State respondent.

2. None appears for the respondent no.2. Pertinent that the name of the learned counsel appearing for the respondent no.2 is reflected in the cause-list.

3. Accordingly, the matter is taken up for final disposal.

4. By filing this petition under Section 482 of the Cr.P.C read with Section 401/397 of the Cr.P.C, 1973, the petitioner is seeking quashing of the impugned order dated 14.08.2018 passed by the learned Sub- Divisional Judicial Magistrate (S) No.1, Kamrup(M) at Guwahati, whereby the learned Magistrate Court had taken cognizance of the offences under Section 420/406 of IPC against the accused/petitioner as well as quashing of the whole proceeding and C.R. Case No.2343c/2016 pending before the learned Sub- Divisional Judicial Magistrate (S) No.1, Kamrup(M) at Guwahati.

5. The facts of the case is that the complainant/respondent no.2 filed a complaint petition before the Chief Judicial Magistrate, Kamrup(M) at Guwahati on 30.07.2016 stating inter- alia that the complainant/respondent no.2 was searching for a plot of land for constructing a permanent resident and accordingly he came to the accused/petitioner, who agreed to sale his plot of land and asked the complainant/respondent no.2 to make an advance payment of Rs.2,00,000/-. Accordingly the complainant/respondent no.2 on 12.03.2016 in the presence of two witnesses paid Rs.2,00,000/- to the accused/petitioner. However, later on despite the complainant/respondent no.2 contacting the accused/petitioner for compliance of the sale, the same was not done, for which a legal notice was issued. Accordingly, it is alleged that the accused/petitioner has cheated the complainant/respondent no.2. The said case was registered as C.R. Case No.2343c/2016.

6. The learned Chief Judicial Magistrate, Kamrup(M) upon received of the aforesaid complaint petition registered the matter as C.R. Case No. 2343c/2016 and thereafter transferred the case records to the Court of learned Sub-Divisional Judicial Magistrate (S) No.1, Kamrup(M) at Guwahati for disposal.

7. Thereafter, learned Sub-Divisional Judicial Magistrate (S) No.1, Kamrup(M) at Guwahati upon receipt of the case records recorded the statement of the complainant under Section 200 of the Cr.P.C and thereafter, by order dated 14.08.2018, took cognizance under Section 420/406 of IPC against the accused/petitioner and was further pleased to fix the next date on 03.10.2018 for appearance of the accused/petitioner.

8. Situated thus, the present petition has been filed seeking quashing of the complaint as well as the order dated 14.08.2018, whereby cognizance has been taken by the learned Magistrate Court.

9. Ms. B. Goswami, learned counsel appearing for the petitioner submits that even if the allegation in the complaint is taken in its face value and accepted to be true, no criminal offence whatsoever is made out and therefore, continuance of the criminal proceeding is wholly unjustified.

10. Ms. B. Goswami, learned counsel appearing for the petitioner further submits that the order of the learned Magistrate taking cognizance is absolutely without any application of mind and therefore is totally perverse and erroneous and hence the same is liable to be set aside and quashed by this Court.

11. Mr. P.S. Lahkar, learned Additional Public Prosecutor appearing for the State respondents in his usual fairness submits that it is apparent from the body of the complaint that upon the complainant/respondent no.2 approaching the accused/petitioner for completing the sale proceedings, the accused/petitioner was willing to return the money and as such no case of cheating or breach of trust as claimed is made out on the face of the complaint.

12. He accordingly submits that the complaint is vague and assuming the allegation in the complaint is correct, the same cannot give rise to

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