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2023 Supreme(P&H) 1471

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Karamjit Singh, J.
Subhash Chand – Appellant
Versus
State of Haryana & Anr. – Respondents
CRM-M No. 31706 of 2013
Decided On : 03-03-2023

Advocates appeared:
For the Parties : Mr. Raj Kumar Gupta, Mr. Naveen Sheoran DAG, Haryana, Mr. Amit Khatkar

Headnote:(A) Indian Penal Code, 1860 - Section 420 - Code of Criminal Procedure, 1973 - Section 482 - Petition for quashing FIR regarding alleged cheating in land sale - Allegations rooted in civil disputes - No credible evidence of fraudulent intent by petitioner established; dispute primarily civil in nature - FIR quashed to prevent abuse of process of law due to conversion of civil matters into criminal cases. (Paras 21, 22, 24)

Facts of the case:
The petitioner sold land to respondent through an agreement to sell but failed to execute a registered sale deed, leading to allegations of cheating after subsequent attempts to sell part of the land to third parties. (Paras 2-3)

Findings of Court:
Court found no malafide intention on part of the petitioner, emphasizing that the allegations do not constitute an offense under Section 420 IPC as the fundamental elements for cheating weren't met. (Paras 22, 24)

Issues: The pivotal question was whether the FIR alleging cheating under Section 420 IPC could stand given the underlying property dispute was primarily civil in nature. (Paras 21-22)

Ratio Decidendi: The Court ruled that every breach of contract does not amount to cheating; it requires evidence of deception from the inception, which was not established in this case. (Paras 12-14)

Result: Petition allowed; the impugned FIR and charge sheet are hereby quashed.

Table of Content
1. quashing of fir based on misrepresentation of ownership. (Para 1 , 2)
2. arguments of petitioner regarding ownership and civil nature of the dispute. (Para 3 , 4 , 6 , 7)
3. response from the state and complainant regarding the issuance of fir. (Para 5 , 8 , 9)
4. legal standards on agreement to sell and elements of cheating. (Para 10 , 11 , 12 , 13 , 14)
5. judicial observations on intention and timelines affecting cheating allegations. (Para 15 , 16 , 17 , 18 , 19)
6. inherent powers of the court to prevent abuse of process under section 482 cr.p.c. (Para 20 , 21 , 22 , 23)
7. petition allowed; fir quashed. (Para 24)

Judgment

Mr. Karamjit Singh, J.

The present petition has been filed by petitioner-Subhash Chand seeking quashing of FIR No.159 dated 29.5.2013 under Section 420 IPC Police Station Uchana District Jind (Annexure P-12) and final report (Annexure P-13), submitted by the police under Section 173 Cr.P.C. and subsequent proceedings arising thereof.

2. FIR (Annexure P-12) was registered against the petitioner on the basis of written complaint lodged by respondent No.2-Kashmir Singh wherein it was alleged that the petitioner sold his land measuring 38 kanals 7 marlas situated in village Kalta Tehsil Narwana District Jind to complainant/respondent No.2 vide agreement to sell dated 20.12.1985 (Annexure P-3) and even the possession of the land so sold was also handed over to respondent No.2 and since then respondent No.2 is in cultivating possession of the same and at the time of execution of said agreement to sell the entire sale consideration was also paid to the petitioner. However in the revenue record ownership of the land in question was not changed from the name of the petitioner to that of respondent No.2 and taking advantage of the same, petitioner sold 23 kanals out of the aforesaid land to Kuldeep and Rishi Pal sons of Subhash vide registered sale deed dated 21.5.2013 and in this manner petitioner cheated respondent No.2, who is the owner-in-possession of the land in question since the date of execution of aforesaid agreement to sell dated 20.12.1985.

3. The counsel for the petitioner has contended that respondent No.2 has propounded an agreement to sell (Annexure P-3), in order to establish that he is the owner and in possession of the land measuring 38 kanals 7 marlas. The counsel for the petitioner further submitted that actually no such agreement to sell was ever executed by the petitioner regarding his land with respondent No.2 and respondent No.2 had not paid any amount to the petitioner by way of sale consideration. The counsel for the petitioner further submitted that Annexure P-3 even if taken to be true on its face value, is a mere agreement to sell and does not confer any title. The counsel for the petitioner further submitted that the petitioner was working in the Indian Railway and he gave his land on ‘Batai’ to respondent No.2 and his brothers Kuldeep Singh and Joga Singh in 1987 and since then respondent No.2 and his brothers are occupying the said land in the same capacity. The counsel for the petitioner has further submitted that the petitioner requested respondent No.2 to vacate the land on number of occasions. But instead of handing over the possession of land, respondent No2 and his brother filed civil suit No.2178 of 2011 (Annexure P-1) seeking grant of decree for permanent injunction restraining the petitioner from interfering into their possession in the land in question and further restraining the petitioner from alienating the said land. The counsel for the petitioner has further contended that said suit was dismissed as being withdrawn by the plaintiffs therein on 23.01.2012 vide order Annexure P-2. The counsel for the petitioner has further submitted that in order to retain his possession over the land in question, respondent No.2 forged an agreement to sell dated 20.12.1985 (Annexure P-3). That on the basis of the said forged document, the respondent No.2 and his brother fi

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