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2015 Supreme(Raj) 1759

PRASHANT KUMAR AGARWAL
Mukul Tiwari – Appellant
Versus
State of Rajasthan – Respondent


Advocates:
For the Petitioners:Lokesh Sharma, Advocate.
For the State: Jitendra Shrimali , P. P.
For the Complainant-Respondent No.2.:Ashok Singh Shekhawat, Advocate.

Judgement Key Points

Key Points: - The essential ingredient for an offence under Section 406 IPC is entrustment of property and dishonest misappropriation or conversion; in this case, the amount paid was not entrusted to the accused (!) . - For Section 420 IPC, intent to deceive must exist at the time of inducement; mere subsequent failure to keep a promise cannot establish cheating, though subsequent conduct may be relevant to infer intent (!) . - The court quashed the FIR as essential ingredients of Sections 406 and 420 IPC were not made out against the petitioner (!) . - The agreement stated possession of the land by the petitioner, placing a duty on the purchaser to ascertain possession; concealment of possession facts was not sufficiently proven to establish fraud (!) . - Civil disputes can coexist with criminal proceedings; prima facie examination is enough at the quashing stage to determine if essential ingredients of an offence are disclosed (!) (!) . - The petition was allowed and FIR No. 94/2014 was quashed and set aside (!) . - The case references include legal standards from Md. Ibrahim & Ors. v. State of Bihar, Inder Mohan Goswami, State of Kerala v. Pareed Pillai, Anil Kumar v. Ajai Butail, and Anil Mahajan v. Bhor Industries Ltd (cited in arguments) (!) (!) . - Facts: alleged agreement to sell, advance paid, land later found in possession of others, and sale to a third party; petitioner’s conduct and possession orders discussed (!) (!) (!) . - The court emphasized that inability to prove entrustment or dishonest intent at the time of inducement defeats both Section 406 and Section 420 IPC at the prima facie stage (!) (!) . - The petition and stay were disposed of with a quashing of the FIR and investigation (!) .

What is the test to establish criminal breach of trust under Section 406 IPC in the context of an advance paid for land sale?

What is the role of a defendant’s subsequent conduct in proving or disproving cheating under Section 420 IPC?

What are the essential ingredients required to quash an FIR under Section 482 Cr.P.C. when allegations pertain to breach of contract or civil disputes?


JUDGMENT

1. - Heard learned counsel for the parties.

2. The accused-petitioners have filed this criminal misc. petition under Section 482 Cr.P.C. with a prayer to quash and set aside FIR No.94/2014 registered at Police Station Mantown, District Sawai Madhopur for the offences under Sections 420, 467, 468 & 120-B IPC mainly on the ground that the dispute between the parties at the most is of civil nature to which colour of criminality has been given. It is to be noted that as per factual report dated 7.7.2015 after investigation offences under Sections 420 & 406 IPC have been found to be made out against the accused-petitioner-Shri Mukul Tiwari only and, therefore, now it is to be seen whether aforesaid offences are in fact made out against the petitioner or not.

3. Brief relevant facts for the disposal of this petition are that aforesaid FIR came to be registered on 10.3.2014 at the instance of the complainant-respondent with the allegation that the petitioner-Shri Mukul Tiwari entered into agreement to sell with the respondent with regard to disputed land in lieu of a total amount of sale consideration of Rs. 17 lacs and Rs. 1 lac was received by him as advance from respondent on 11












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