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BECHU KURIAN THOMAS
Abdul Rahman S/o Abdul Azeez – Appellant
Versus
State of Kerala – Respondent
ORDER :
1. In this petition under section 482 Cr.P.C, petitioner challenges the crime registered against him as F.I.R. No. 119/2021 of the Chandera Police Station, Kasaragod, Kerala.
2. A complaint was filed by the second respondent on 05.02.2021, alleging that he had been authorised by M/s.Invest Bank, Sharjah, United Arab Emirates, to initiate criminal proceedings against the petitioner. The F.I.R was registered pursuant to a complaint alleging that the accused had on 04-10-2017 and 23-01-2018 obtained a total loan of 68.159 million UAE dirhams equivalent to Rs.135 Crores for the business purposes of his establishment by the name 'M/s.Hexsa Oil and Gas Services LLC' and failed to repay 42.898 million UAE dirhams and thereby committed cheating.
3. The complainant alleged that the loan was disbursed since the accused had promised to repay it in 84 months and also that the amount shall be utilised only for the purpose of the business of his company and the accused had personally undertaken to repay the payment. Induced by the promise of the accused, the bank disbursed the loan amount. However, the accused defaulted in repayment and when the bank officials visited the establishment of t
A loan default does not constitute cheating unless there was fraudulent intention at the inception of the agreement, distinguishing civil disputes from criminal offenses.
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.
Mere default in loan repayment does not constitute cheating unless there was deception at the inception of the contract.
Mere breach of contract without initial fraudulent intent does not constitute an offence under IPC sections 406 or 420.
Dishonest intention must be established from the inception of a transaction to constitute cheating under IPC, and mere allegations without evidence do not warrant quashing of FIR.
A mere inability to repay a loan does not amount to cheating unless there was deception from the inception of the transaction.
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