IN THE HIGH COURT OF ALLAHABAD
ARUN KUMAR SINGH DESHWAL, J.
Madan Mohan Sharma – Appellant
Versus
State of U.P. and Another – Respondents
Application U/S 482 No.13275 of 2018
Decided on : 05-10-2023
Quashing of Proceedings - Trust Property Dispute - Section 420 I.P.C. - [TRUST PROPERTY DISPUTE] - [Section 420 I.P.C.] - The court discussed the legal provisions of Section 420 I.P.C. and emphasized the essential ingredient of cheating as defined under Section 415 I.P.C. The court referred to various judgments of the Hon'ble Apex Court to highlight the tendency of converting civil disputes into criminal litigation and the requirement of fraudulent or dishonest inducement for the offence of cheating under Section 415 I.P.C. The court concluded that no case under Section 420 I.P.C. was made out and quashed the proceedings.
Fact of the Case:
The applicant filed a 482 Cr.P.C. application to quash the proceedings against him in a Complaint Case under Section 420 I.P.C. The dispute arose from a trust property issue between the applicant and the opposite party no. 2, involving a series of legal actions and litigations.
Finding of the Court:
The court found that no case under Section 420 I.P.C. was made out against the applicant and emphasized that the dispute was of a purely civil nature, which had been converted into a criminal prosecution at the behest of the opposite party no. 2. The court quashed the entire proceedings of the case.
Issues: The key issue revolved around whether the allegations in the complaint constituted the essential elements of cheating as defined under Section 415 I.P.C., and whether the dispute was of a civil nature or had been improperly converted into a criminal prosecution.
Ratio Decidendi: The court's decision was based on the interpretation of the legal provisions of Section 420 I.P.C. and the essential ingredient of cheating as defined under Section 415 I.P.C. The court also considered the tendency of converting civil disputes into criminal litigation and the requirement of fraudulent or dishonest inducement for the offence of cheating.
Final Decision: The 482 Cr.P.C. application was allowed, and the entire proceedings of the case were quashed.
JUDGMENT :
1. Heard Sri Anshul Kumar Singhal, learned counsel for the applicant and Sri Udai Bhan, learned A.G.A. for the State.
2. The present 482 Cr.P.C. application has been filed to quash the entire proceedings against the applicant in Complaint Case No. 2548, under Section 420 I.P.C., P.S. Hathras Gate, district-Hathras, pending in the court of Chief Judicial Magistrate, Hathras, as well as summoning order dated 19.12.2017.
3. The contention of learned counsel for the applicant is that applicant and opposite party no. 2 are the grandsons of late Netram Sharma, who during his lifetime executed a registered trust deed on 01.01.1945 and the father of the applicant was nominated as Manager of the aforesaid trust, thereafter a registered will deed dated 20.11.1974 was executed by late Netram Sharma, by which all managerial rights of the aforesaid trust was given to Sri Damodar Das (father of the applicant). It was further provided in the aforesaid will deed that heirs of Damodar Das will continue to manage the affairs of the trust. Subsequently, the opposite party no. 2 and his brother started putting their claim over the property of trust, denying the trust deed, as well as will dated 20.11.1974. After the death of Damodar Das, father of opposite party no. 2 has filed a suit bearing Original Suit no. 48 of 1983 for declaration of ownership regarding trust property. Subsequently, this suit was disposed of on the basis of compromise entered into between the parties regarding trust property. Subsequently, when the opposite party no. 2 had started interfering the applicant in the enjoyment of the property in question, then the applicant has filed Original Suit No. 201 of 2005 for permanent injunction and declaration. The said suit was decreed by order dated 19.02.2010, in which the applicant was declared Manager of the trust and opposite party no. 2 and his brother were injected from transferring any part of the property of the Dharamshala, though the aforesaid judgment dated 19.02.2010 passed in Suit No. 210 of 2005 was challenged by the opposite party no. 2 in First Appeal No. 213 of 2010 but this Hon'ble Court did not stay the judgment dated 19.02.2010 and only order of status quo was passed. After loosing the litigation, the opposite party no. 2 has filed impugned complaint on 19.06.2017 on the ground that applicant has violated the terms of compromise entered into between the parties in Suit No. 48 of 1983 before the Munsif Court, Hathras.
4. Learned counsel for the applicant has further contended that from the perusal of the impugned complaint, no case under section 420 I.P.C. is made out against the applicant and the ingredients of cheating as defined under Section 415 I.P.C. are missing and there is no allegation that applicant had fraudulently or dishonestly induced to deliver any property.
5. From the perusal of the record, it appears that specific case of opposite party no. 2 in his complaint as well as in his statement recorded under Section 200 Cr.P.C. is that though as per compromise entered into between the parties, during pendency of the Suit No. 48 of 1983, the Dharamshala was given to opposite party no. 2 but in violation of the aforesaid compromise deed and the applicant retained the same with malafide intention. Therefore, even if the entire allegation of the complaint as well statement of complainant recorded under Section 200 Cr.P.C. are taken as true even then case under Section 420 I.P.C. is not made out against the applicant. The Apex Court in number of judgments held that there is tendency of the parties of converting a civil litigation into criminal litigation. Hon'ble Apex Court in Gulam Mustafa vs. State of Karnataka (2023) SCC online SC 603 observed in paragraph 36, which reads as under:
The central legal point established in the judgment is that for the offence of cheating under Section 420 I.P.C., there must be an element of cheating as defined under Section 415 I.P.C., and fraudul....
Criminal proceedings should not be initiated for disputes that are fundamentally civil in nature, and the essential ingredients of the alleged offenses must be clearly established for prosecution und....
Section 405 IPC defines criminal breach of trust.
The court established that allegations of cheating must demonstrate fraudulent inducement, which was not present, allowing for the quashing of criminal proceedings.
The court found that a civil dispute may constitute a criminal offence under S.420 IPC if fraudulent intent is present, and the mere existence of a civil remedy does not warrant quashing criminal pro....
Criminal proceedings cannot be initiated for disputes that are purely civil, especially where the essential ingredients of the alleged offences are not met.
Mere breach of contract does not constitute cheating under IPC unless there is evidence of dishonest intention from the outset.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.