IN THE HIGH COURT OF JUDICATURE AT MADRAS
P. RAJAMANICKAM, J.
S. Hemamalini - Appellant
Versus
K. Shanmugam - Respondent
CRL.O.P. No. 10699 of 2017
Decided On : 13-05-2020
Cheating - Commercial Transaction - Section 420 IPC - [FACT OF THE CASE] The petitioner, a cloth trader, supplied goods to the respondent on credit basis. The respondent failed to pay and sold the premises, leading to a complaint under Section 420 IPC. [FINDING OF THE COURT] The court found that the transaction was purely civil in nature and dismissed the petition. [ISSUES] Whether the respondent's actions constituted cheating under Section 420 IPC. [RATIO DECIDENDI] The court emphasized that the intention of the accused at the beginning of the transaction is crucial to establish criminal liability for cheating. Mere breach of contract does not lead to criminal prosecution unless fraudulent or dishonest intention is shown at the outset. [FINAL DECISION] The petition was dismissed.
JUDGMENT
(Prayer: Criminal Original Petition filed under Section 482 of the Criminal Procedure Code to set aside the order passed by the V Additional District Judge, Coimbatore in CRP.No.65 of 2015 dated 18.10.2016 confirming the order passed by the Judicial Magistrate No.II Coimbatore in Criminal Miscellaneous Petition No.291/2015 dated 04.08.2015 and to take the complaint on file and direct the trial court to issue process to the first respondent and to deal with the first respondent in accordance with law.)
1. This petition has been filed by the complainant under Section 482 of Cr.P.C., to set aside the order passed by the V Additional District and Sessions Judge, Coimbatore in CRP.No.65 of 2015 dated 18.10.2016 confirming the order passed by the Judicial Magistrate No.II, Coimbatore in Crl.MP.No.291 of of 2015 dated 04.08.2015 and to direct the Judicial Magistrate No.II, Coimbatore to take the complaint on file and issue process to the respondent/accused and dispose of the case in accordance with the law.
2. The petitioner herein has filed a private complaint stating that she is dealing/trading in high quality cotton cloths under the name and style of 'Mrrine Overseas'. She has taken the property of the respondent/accused on lease for godown purpose on a monthly rent of Rs.3200/- and she paid Rs.25,000/- as advance. The accused being the owner of the tenanted premises, the husband of the complainant and the accused became acquainted. The accused is carrying on business in Textiles under the name and style of 'Sri Chitra Tex'. Based on the acquaintance, the accused approached the complainant and requested to supply grey clothes (goods) on credit basis. He promised and assured to pay the value of the goods supplied to him promptly. Believing the representation and promise made by the accused, the complainant has supplied goods under nine invoices from 28.11.2006 to 16.12.2006 to the value of Rs.25,30,786/- But, the accused has been postponing the payment under one pretext or the other. Subsequently, all of a sudden without any intimation, the accused has sold the tenanted premises to third parties and forcibly evicted the complainant. The complainant has lodged a complaint with the Karumathampatti police on 03.04.2008. At the intervention of the well wishers of both the parties, the accused promised to settle the entire invoice amount and also refund the rent advance. But, the accused did not make any payment and hence the complainant has issued a lawyer's notice to the accused on 27.04.2009 calling upon him to pay the aforesaid amount. After receipt of the notice, the accused approached the complainant and requested time for settling the amount. But he did not come forward to settle the amount and hence the complainant has lodged a complaint on 16.05.2012 with District Crime Branch. But no action has been taken on the said complaint. Hence, the complainant has filed Crl.OP.No.16105 of 2014 before this court. This court has disposed of the said petition on 26.06.2014 with a liberty to the petitioner to pursue her remedy in court of law. Since the accused has made false representations and forced the complainant to supply the goods under credit basis, he has committed the offence punishable under Section 420 of IPC. Hence, the petitioner has filed a private complaint before the Judicial Magistrate No.II, Coimbatore with a request to take the case on file and issue summons to the accused and punish him in accordance with law.
3. The learned Judicial Magistrate, No.II, Coimbatore after recording sworn statement of the petitioner/complainant, has taken the case on file in Crl.MP.No.291 of 2015 and conducted enquiry under Section 202 of Cr.P.C., During enquiry under Section 202 of Cr.P.C., the complainant has examined two witnesses as P.Ws1 and 2.
4. The learned Judicial Magistrate after considering the complaint, statement of the complainant and deposition of P.Ws.1 and 2 and the materials produced before him, has dismissed the said
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