Criminal proceedings for cheating and criminal breach of trust cannot be maintained for a purely civil dispute where the essential ingredients—specifically initial deception for cheating and clear entrustment for criminal breach of trust—are absent, as such initiation constitutes an abuse of the court's process.

JUDGMENT :

ANIL KUMAR CHOUDHARY, J.

1. Heard the parties.

2. This criminal miscellaneous petition has been filed invoking the jurisdiction of this Court under Section 528 of Bharatiya Nagarik Suraksha Sanhita, 2023 with the prayer to quash the entire criminal proceeding including the order dated 20.03.2024 passed by the learned Chief Judicial Magistrate, Jamshedpur in connection with Complaint Case No. 3569 of 2022 whereby and where under, the learned Chief Judicial Magistrate, Jamshedpur has taken cognizance of the offences punishable under Sections 406 and 420 of Indian Penal Code.

3. Though notice has validly been served upon the opposite party no.2 yet no one turns up on behalf of the opposite party no.2 in-spite of repeated calls.

4. The allegation against the petitioners is that the petitioners are owners of certain land and they have entered into a development agreement with the company of the complainant. As per the terms of the development agreement, a general power of attorney was executed. The complainant invested crores of rupees in the said project but in violation of the terms and condition of the development agreement, the petitioners have revoked the power of attorney.

5. On the basis of the complaint petition, statement of the complainant on solemn affirmation and the statement of the inquiry witnesses, the learned Chief Judicial Magistrate, Jamshedpur has taken cognizance of the offences punishable under Sections 406 and 420 of the Indian Penal Code.

6. It is submitted by the learned counsel for the petitioners by relying upon the judgment of this Court in the case of Brajesh Chand Vidhyarthi @ Brajesh Chandra Vidyaarthi & Ors. vs. The State of Jharkhand & Anr. reported in 2025:JHHC:24069 that therein this Court relied upon the judgment of the Hon’ble Supreme Court of India in the case of Sarabjit Kaur vs. State of Punjab & Anr. reported in (2023) 5 SCC 360, paragraph no. 13 of which reads as under:-

“13. A breach of contract does not give rise to criminal prosecution for cheating unless fraudulent or dishonest intention is shown right at the beginning of the transaction. Merely on the allegation of failure to keep up promise will not be enough to initiate criminal proceedings. From the facts available on record, it is evident that Respondent 2 had improved his case ever since the first complaint was filed in which there were no allegations against the appellant rather it was only against the property dealers which was in subsequent complaints that the name of the appellant was mentioned. On the first complaint, the only request was for return of the amount paid by Respondent 2. When the offence was made out on the basis of the first complaint, the second complaint was filed with improved version making allegations against the appellant as well which was not there in the earlier complaint. The entire idea seems to be to convert a civil dispute into criminal and put pressure on the appellant for return of the amount allegedly paid. The criminal courts are not meant to be used for settling scores or pressurise parties to settle civil disputes. Wherever ingredients of criminal offences are made out, criminal courts have to take cognizance. The complaint in question on the basis of which FIR was registered was filed nearly three years after the last date fixed for registration of the sale deed. Allowing the proceedings to continue would be an abuse of process of the court.” (Emphasis supplied)

wherein, the Hon’ble Supreme Court of India has reiterated the settled principle of law that unless there is a