IN THE HIGH COURT OF MADHYA PRADESH
Sanjay Dwivedi, J.
Rahul Agarwal v. State of M.P. and Others
Writ Petition No. 15169 of 2023 (Jabalpur);
Decided on 7.5.2024.
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(1) Specific Relief Act, 1963 -- S. 12 -- agreement to sell land in lieu of loan -- amount of loan not repaid -- land sold to another person -- remedy was civil suit for implemention of agreement to sell, not complaint in Police Station. [Paras 11 & 14
(2) Penal Code, 1860 -- Ss. 420 and 415 -- offence when not made out -- loan received from company in year 2014 -- sale agreement of land executed in year 2019 -- nothing done by company till 2023 -- then sale deed executed by petitioner in favour of some other person -- not alleged in FIR that from very inception, intention of petitioner was of cheating -- it cannot be considered to be cheating since required ingredients of cheating are missing -- litigation is of civil nature -- no offence made out. (2002) 1 SCC 241, (2011) 7 SCC 59, (2009) 7 SCC 495, (2000) 2 SCC 636, (2022) 7 SCC 124 and (2006) 6 SCC 736 followed. (2014) 2 SCC 1, (2015) 6 SCC 287, (2014) 5 SCC 108, (2000) SCC Online P&H 348, ILR 2023 MP 1137, ILR 2021 MP 1292 (DB) and Cr. A. No. 335 of 2024 referred to. [Paras 12 to 16
(3) Constitution of India -- Art. 226 -- scope of power -- contents of FIR do not constitute offence of cheating against petitioner and his family members -- exercising power under Article 226, FIR can be quashed. [Paras 17 & 18
ORDER
1. With the consent of learned counsel for the parties, the petition is heard finally.
2. By the instant petition filed under Article 226 of the Constitution of India, the petitioner has claimed the following relief (s):-
‘(7.1) To issue writ in the nature of mandamus, directing the respondent No.2 & 3 to take suitable action on the complaints made by the petitioner (Annexure P/2) and, register criminal case under appropriate offences against the persons accused therein;
(7.2) To issue writ in the nature of certiorari for quashing of criminal proceeding, if any, lodged by the respondent No.4 against the petitioner and his family members, to meet the ends of justice.
(7.3) To direct suitable disciplinary action against the respondent No.2 & 3 for dereliction in performance of duties casted upon them as responsible police officers;
(7.3A) Quash and set aside the FIR dated 29.6.2023 filed at Annexure-P/4 and after quashing and setting aside the same initiate appropriate action against the respondents for abusing the process of law and direct the police authorities to take action against respondent No.4 for lodging a false complaint against the petitioner and his family members, in the interest of justice.
(7.4) Any other suitable relief deemed fit in the facts and circumstances of the case may also kindly be granted together with the cost of the present case.’
3. Shorn of unnecessary details, the facts of the case which are requisite to be stated are that the petitioner being an owner of a property situated at Khasra No.371 of Village Pureni, District Katni, area admeasuring 0.526 hectare had filed a civil suit for removal of encroachment made thereon and in turn, vide judgment and decree dated 22.3.2016, he succeeded in the said suit.
(3.1) According to the petitioner, respondent No.4 is a habitual criminal against whom, the Enforcement Directorate has initiated as many as six cases under the provisions of the Prevention of Money Laundering Act, 2002. In addition to that, several cases of other nature have also been registered against respondent No.4 at various police stations. According to the petitioner, since respondent No.4 was interested in grabbing his land, therefore, for creating pressure upon the petitioner to sell his land on a very meagre price, respondent No.4 started threatening the petitioner and his family members against which, though the petitioner approached the police authorities by making a complaint against respondent No.4 (Annexure-P/2), but no action thereon has been taken.
(3.2) According to the petitioner, from a newspaper, he came to know about the fact that respondent No.4 posing himself to be an authorized representative of M/s MVS Leasing Private Company (in short the ‘Company’); which is a non-banking financial organization, registered office of which situates at Office-20, Chinar Park, Club Town Enclave Kolkata, West Bengal whereas the branch office situates at Gajanan Talkies Complex Malviya Ganj Ward Katni, has made a false written complaint against him, his wife and his son to the police mentioning therein that in the year 2014, the petitioner for the purpose of his business had taken a loan amounting to Rs.4 crores from the Company with an assurance that except the principal amount, he will repay the interest levied on the said amount, but on account of loss suffered in the business, since the petitioner was unable to repay the principal so also the interest amount, therefore, on 29.3.2019, he entered into an agreement to sell with the Company in respect of his land situates at Khasra No.371, Patwari Halka No.40 of Village Pureni, District Katni. Respondent No.4 in his written complaint had also stated that though the petitioner at that time had apprised that involving the said land, a civil suit is already pending and as soon as it is adjudicated, he would execute the sale-deed in respect of that land in favour of the Company, but later on, with an intention to cheat, the petitioner had
Criminal proceedings cannot proceed where allegations only constitute a civil dispute without intent to cheat.
The allegations in the FIR do not constitute an offence under IPC Sections 406 and 420, as they lack essential elements of criminal intent, reflecting a civil dispute instead.
Civil disputes should not be framed as criminal offences when no fraudulent intent is evident, as it constitutes an abuse of legal processes.
Mere non-payment in business supply transaction does not constitute cheating under IPC Section 420 absent proof of dishonest inducement at inception; such civil disputes warrant FIR quashing to preve....
Breaches of commercial agreements do not constitute criminal offenses unless fraudulent intent is established at the outset, reinforcing that civil disputes should not be converted into criminal matt....
The court reiterated that a mere breach of contract does not constitute a criminal offence unless fraudulent or dishonest intention is established, quashing the FIR due to lack of supporting evidence....
Criminal proceedings cannot be initiated for disputes that are purely civil, especially where the essential ingredients of the alleged offences are not met.
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