JUDGMENT :

Kirti Singh, J.

1. The petitioners by way of the present petition under Section 528 of Bharatiya Nagarik Suraksha Sanhita, 2023 are seeking quashing of the FIR No. 449 dated 06.08.2024, under Sections 406 and 420 of Indian Penal Code, 1860, registered at Police Station Suraj Kund, District Faridabad.

FACTUAL MATRIX

2. The controversy involved in the present case is that the petitioners are Directors in a company i.e. Rise Projects Private Limited and the said Company was undertaking the construction of a Group Housing Project in which the complainants and their property dealing company had booked three flats as an investment. A complaint was lodged by the complainants i.e. respondents Nos.2 to 5 (arrayed in the petition) against the persons namely, Vaibhav Jain and Swati Jain (petitioners herein). The complainants alleged that in 2013 relying on the false assurances and representations made by the petitioners, they proceeded to book their apartments in the project. Acting in good faith and on the basis of promises made, the complainants made substantial payment amounting to about 87% of the total cost of the apartment in installments over time. These payments were made despite the absence of tangible progress in the projects developed as the petitioners continued to provide misleading information about the status of construction and delivery timeline.

2.1 As per the agreement, the developer was required to deliver possession of the apartment to the allottee within 42 months from the execution of the agreement, a period that expired in March 2017. However, despite no progress at the ground level, the developers continuously misled and deceived the complainants with the false assurances that the apartments are near completion and soon will be soon delivered. It is further alleged that developers were unable to complete the project within the stipulated time.

2.2 It is further alleged that the developer with an intention to defraud the complainants had siphoned the money for their personal expenses. The accused breached their trust and misappropriated their money for their personal and unjust enrichment. According to the contractual obligations, the complainants are allowed to get their deposited money back in case of failure on the part of the petitioners/accused in giving possession of the said units within the stipulated time period. However, the petitioners/accused were trying to manipulate the complainants for the evasion of their liability to pay them in case of failure on their part. The principal amount is Rs.6,32,59,900/- along with penal interest of Rs.13,27,90,333/- at 24% simple interest accruing annually as on 31.01.2024. On the basis of these allegations, the present FIR was registered against the petitioners.

Submissions made by learned Senior Counsel for the petitioners.

3. It has been argued by the learned Senior counsel that the impugned FIR is illegal, unsustainable and an abuse of the process of law, as the same has been lodged to settle a civil dispute by way of blackmailing the petitioners on the pretext of the criminal justice system and in the first instance deserves to be quashed on the following grounds:-

1. The impugned FIR is an attempt by the complainants to settle civil and contractual disputes. As per the FIR the only grievance is that there has been non compliance of "contractual obligations" between the parties, for which the complainant/respondent No.2 can take the recourse of civil remedies. It is a settled proposition of law that mere breach of contract does not constitute an offence under Section 406 or 420 IPC. No dishonest intention has been attributed to the petitioners since the institution of the transaction. Reliance has been placed on the judgment rendered by the Hon'ble Supreme Court in case titled as Vijay Kumar Ghai & Ors. Vs. State of West Bengal & Ors., (2022) 7 SCC 124.

2. That previously, the complainant/respondent No.2 had filed a complaint bearing No.495 of 2019 which was clos