Dispute involving non-payment of interest on a security deposit does not constitute a criminal offence under Section 406 IPC and should be resolved through a civil suit.

1. - This Misc. Petition under Section 482 Cr.P.C. has been filed for quashing the proceedings before the court below.

2. The relevant facts of the case are that respondent No. 2 filed a complaint against present petitioner which was sent for investigation and after investigation, police filed a negative final report that no criminal case is made out against the present petitioner as the grievance between the parties was that of non payment of interest @ 10% on the security amount. The complainant filed a protest petition on which cognizance has been taken against the present petitioner for the offence under Section 406 IPC. The contention of the present petitioner is that if the facts narrated in the complaint are taken on its face value, no criminal case is made out against him. The only allegation against the petitioner is that he has not honoured the agreement between the parties and 10% of interest amount has not been paid, hence it is a breach of contract, non compliance of a commercial transaction and cognizance be quashed.Per contra, the contention of the respondent is that cognizance has rightly been taken against the present petitioner and complainant cannot be forced to file a civil suit by paying the court-fee for recovery of the amount.

3. Heard the learned counsel for the parties and perused the impugned order as well as the copy of complaint which was filed by the present petitioner.

4. A bare perusal of the complaint goes to show that the only dispute between the parties is non payment of 10% interest on the security deposit, admitted case between the parties is that interest on security amount has not been refunded, no written agreement executed between the parties has been produced and allegations taken on its face value did not disclose any ingredient of cheating. No case is made out under Section 420 and 406 IPC as the dispute is of money only which can be recovered by way of civil suit and respondent has converted the civil dispute in a criminal colour just to save the court-fee. By no stretch of imagination, the recovery of interest can be considered as cheating and court below has erred in taking cognizance against the present petitioner for the offence under Section 406 IPC.In view of the above, the petition succeeds and is allowed. The impugned order of taking cognizance dated 3.10.2005 passed by ACJM, Mahua, Distt. Dausa is quashed and set aside.

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