IMPORTANT POINT
IMPORTANT POINT
Non-payment in commercial transactions does not constitute cheating or criminal breach of trust without establishing fraudulent intent.

ORDER :

SANJEEV S KALGAONKAR, J.

1.This petition under Section 528 of the BNSS, 2023 is filed for quashing the FIR registered at Crime No. 151 /2024 at P.S. Khilchipur, District - Rajgarh for offence punishable under Sections 420 and 406 of IPC alongwith subsequent proceedings.

2. The exposition of facts, in brief, giving rise to the present petition is as under:

A. Kailashchand and other farmers submitted a written complaint to the SHO of Police Station – Khilchipur, District – Rajgarh, alleging fraud and cheating against Raju Soni S/o Mohanbabu Soni and Ravi Soni S/o Mohanbabu Soni, resident of Village – Chhapiheda. It is alleged in the complaint that in the year 2023, Raju Soni and Ravi Soni purchased crops of wheat, Soyabeen, Musturd, Lentil (masoor) and Corn (makka) on credit and promised to pay the amount towards purchase of crops within a month. Raju Soni and Ravi Soni paid the amounts as promised and earned their trust. Raju Soni and Ravi Soni purchased other crops also and paid the amounts. Raju Soni and Ravi Soni had purchased crops of Soyabeen, Musturd and Lentil from farmers between October, 2023 to February 2024, but did not pay the amounts. Raju Soni and Ravi Soni have absconded.

B. On such allegations, the Police Station – Khilchipur, District – Rajgarh registered FIR at Crime no. 151 of 2024 for offences punishable under Sections 420 and 406 of the IPC against Raju Soni and Ravi Soni. The statements of witnesses have been recorded. Handwritten purchase slips were seized on production by farmers. The prosecution for offences punishable under Sections 409, 467, 468 and 471 of IPC was added. The investigation is under way.”

3. Learned counsel for the petitioners, in addition to the grounds mentioned in the petition, submitted that the alleged offence is not committed by the petitioners. The dispute between the parties is predominantly civil in nature, which is given color of criminal prosecution to pressurize the petitioners. Learned counsel further contended that the dispute relates to commercial transactions of sale of goods, therefore, the offence punishable under sections 420 and 406 of the IPC is not made out against the petitioners. The continuation of investigation would cause serious prejudice to the petitioners., learned counsel for the petitioners relied upon the order dated 16.05.2025 passed in MCRC no. 35544 of 2019 [Sushree Shehal and Others Vs. State of Madhya Pradesh and Others] and the order dated 05.05.2025 passed in MCRC no. 19202 of 2024 [Gauri Rahul Takalkar and Others Vs. Rahul Dilip Takalkar] to butress his contentions.

4. Per-contra, learned counsel for the State ably assisted by learned Counsel for objector opposed the petition and submitted that the petitioners had defrauded various famers. They have forged the purchase slips showing the purchase of crops from 161 farmers and fled away with amounts to the tune of Rs. 2,32,10,000/-, therefore, the offences punishable under sections 409 and 468 of IPC are prima-facie made out against the petitioners. The investigation is under way. The petition is meritless.

5. Heard, learned counsel for the parties and perused the record.

6. The section 420 IPC deals with the cheating by dishonestly inducing delivery of property. The petitioners' failure to pay the outstanding money towards purchase of crops has led to charges of cheating. Mere non- performance of the contract or inaction or deferment in payment in compliance with the promise may provide cause of action for specific performance of the contract or recovery of money but dishonest intention to cheat or fraudulent intention to misappropriate from inception cannot be inferred from these actions in case of continuing transaction. Mere non- payment or underpayment of the price of the goods by itself does not amount to commission of an offence of cheating or criminal breach of trust. ( Vir Prakash Sharma v. Anil Kumar Agarwal , (2007) 7 SCC