IN THE HIGH COURT OF JAMMU AND KASHMIR AT SRINAGAR
Sunil Hali, J.
Darshan Singh & Ors. - Appellant
Versus
Ali Mohd. Makroo - Respondent
561-A Cr.P.C. No. 104/2008
Decided On : 24 April, 2009
Cheating - Termination of Dealership - The complaint did not disclose an offence under section 420 of RPC as the termination of the dealership did not constitute an offence and there was no indication of fraudulent or dishonest intention in delivering the tractor of a different model. The court quashed the proceedings pending before the lower court.
Fact of the Case:
The complaint alleged that the accused terminated the dealership and delivered a tractor of a different model in 2007. The Chief Judicial Magistrate issued process under section 420 of RPC.
Finding of the Court:
The court found that the complaint did not disclose an offence under section 420 as the termination of the dealership was a contractual matter and there was no indication of fraudulent or dishonest intention in delivering the tractor of a different model.
Issues: The main issue was whether the complaint disclosed an offence under section 420 of RPC based on the allegations of termination of dealership and delivery of a different model tractor.
Ratio Decidendi: The court emphasized that for an offence under section 420, there must be deception and dishonest intention from the inception of the transaction. The termination of the dealership did not constitute an offence, and there was no indication of fraudulent or dishonest intention in delivering the tractor of a different model.
Final Decision: The court quashed the proceedings pending before the lower court, stating that the complaint did not disclose an offence under section 420 of RPC against the petitioner.
2. The Chief Judicial Magistrate, Srinagar has issued process under section 420 of RPC. In order to attract provisions of section 420, it has to be disclosed in the complaint that the accused has fraudulently induced a person to deliver any property to any person, or to consent that any person shall retain any property or intentionally induces the person so deceived to do or omit to do anything which he would not do or omit if he was not so deceived. The act must disclose that by fraudulent and dishonest intention, a person is induced to deliver property to any person.
3. In the present case, there are only two allegations, which have been levelled in the complaint:
a) that the dealership has been terminated.
b) that the Tractor delivered in 2007 was of 2006 model.
In order to examine the facts revealed in the complaint, it is to be seen whether offence under section 420 is made out. Section 420 RPC defines cheating as under :
"Cheating
Whoever, by deceiving any person, fraudulently or dishonestly induces the person so deceived to deliver any property to any person, or to consent that any person shall retain any property or intentionally induces the person so deceived to do or omit to do anything which he would not do or omit if he was not so deceived, and which act of omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property, is said to "cheat"
4. A bare reading of the aforementioned section clearly reveals that there are two elements namely, deception and dishonest intention to do or omit to do something. In order to bring a case within the first part of section 420, it is essential, in the first place, that the person, who delivers the property should have been deceived before he makes delivery, and in the second place that he should have been induced to do so fraudulently or dishonestly. Where property is fraudulently or dishonestly obtained, section 420 would bring the said Act within the ambit of cheating provided the property is to be obtained by deception. It is not necessary that the complainant should verbatim reproduce in the body of his complaint all the ingredients of the offence he is alleging. Nor it is necessary that the complainant should state in so many words that the intention of the accused was dishonest or fraudulent. The crux of the postulate is the intention of the person who induces the victim of his representation and not the nature of the transaction which would become decisive in discerning whether there was commission of offence or not.
5. The aforesaid discussion clearly reveals that deception must be from the inception. Applying text to the present case, following facts are to be observed:
6. The allegations in the complaint reveal that the dealership has been terminated and the Tractor delivered in 2007 was of 2006 model. The termination of the dealership does not constitute an offence. It is purely a case of contract. Regarding the fact that the Tractor delivered in 2007 was of 2006 model, no offence has been stated in the complaint which would indicate that petitioner was required to supply Tractor of 2007 model but instead he has delivered the Tractor of 2006 mod
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