Not every breach of contract amounts to cheating, and mere retention of property does not constitute dishonest misappropriation. The essential ingredients for criminal offences under the Indian Penal Code were emphasized.

JUDGMENT :

1. Heard the parties.

2. This criminal miscellaneous petition has been filed invoking the jurisdiction of this Court under Section 482 Cr.P.C. with a prayer to quash the order dated 24.03.2022 passed by the learned Judicial Magistrate –XIII, Ranchi in Complaint Case No. 6177 of 2021 by which the learned Magistrate has found prima facie sufficient material to call upon the petitioners to face trial for the offences punishable under Section 406/420/504/34 of the Indian Penal Code and directed for issue of summons to the petitioners. Prayer has also been made for quashing the entire criminal proceeding arising out of Complaint Case No. 6177 of 2021.

3. The brief facts of the case is that the opposite party no.2 entered into an agreement with the petitioners; for sale of the land of the petitioners to the opposite party no.2-complainant, on 03.08.2020. The petitioners received an advance amount of Rs.14,51,051/- only. The total consideration amount of the property was fixed at Rs.5,25,00,000/- only. It is agreed to between the parties that the sale deed was to be executed by 28.02.2021. It was further agreed to between the parties that the second party to the said agreement i.e. the complainant-opposite party no.2 of this criminal miscellaneous petition shall forfeit the advance paid on failure to pay the balance consideration amount by 28.02.2021 or any mutually agreed date. There is no material in the record to suggest that any mutually agreed date other than 28.02.2021 was agreed to between the parties in consonance of terms of the said agreement. The complainant filed the complaint petition alleging inter-alia that during the subsistence of the agreement between the petitioners and the complainant-opposite party no.2; the petitioners entered into another agreement with some other persons for selling the said property for Rs.7,00,00,000/- and it is alleged that the petitioners also threatened the complainant-opposite party no.2 when the complainant-opposite party no.2 objected to the petitioners entering into agreement with the third person; during the subsistence of the agreement between the complainant and the petitioners. The learned Magistrate on the basis of the contents of the complaint, statement of the complainant on solemn affirmation and the statement of the two inquiry witnesses, observed that they have corroborated the version of the complainant to some extent and observed that prima facie sufficient materials are available on the record to call upon the petitioners to face the trial for the offences punishable under Section 406/420/504/34 of the Indian Penal Code and directed issue of summons to the petitioners.

4. It is submitted by the learned counsel for the petitioners that the dispute between the parties is purely a civil dispute and 12 days after filing the complaint, the complainant-opposite party no.2 has also filed Original Title Suit No. 357 of 2021 but suppressed the same in his statement under solemn affirmation. It is next submitted by the learned counsel for the petitioners that the learned Judicial Magistrate without any application of mind in a very cryptic and mechanical manner, misconceived and misinterpreted the present dispute and has illegally observed that there is prima facie case for the petitioners, to face the trial.

5. Relying upon the Judgment of Hon’ble Supreme Court of India in the case of Indian Oil Corporation Vs. NEPC India Ltd. & Ors., reported in (2006) 6 SCC 736, para -13 of which reads as under:-

“13. While on this issue, it is necessary to take notice of a growing tendency in business circles to convert purely civil disputes into criminal cases. This is obviously on account of a prevalent impression that civil law remedies are time consuming and do not adequately protect the interests of lenders/creditors. Such a tendency is seen in several family disputes also, leading to irretrievable breakdown of marriages/families. There is also an impression that if a person cou