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2024 Supreme(Manipur) 17

IN THE HIGH COURT OF MANIPUR AT IMPHAL
Golmei Gaiphulshillu, J.
Shri Sunil Kumar Sethi - Petitioner
Versus
The State of Manipur represented by the Principal Secretary (Home) and ors. - Respondents
Cril. Petition no. 20 of 2017
Decided On : 18-07-2024

Advocates Appeared:
For the Petitioner:Mr. L. Shashibhushan, Senior Advocate
For the Respondent:Mr. Samarjit Hawaibam, Public Prosecutor, Mr. H. Kenajit, Advocate

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 for the allegations.

Headnote:(A) Indian Penal Code, 1860 - Sections 34, 406, 420, 506 - Criminal proceedings quashed on grounds of no cognizable offence established - Allegations were a result of civil dispute masked as criminal offences; no deceitful intention at inception of transaction was demonstrated - Judicial precedents indicate mere breach of contract is not sufficient for criminal prosecution - Previous payments made do not constitute necessary deceit to qualify as cheating. (Paras 20, 22, 24-28)

(B) Criminal Procedure Code, 1973 - Section 482 - Inherent powers of High Court - High Courts should intervene in criminal proceedings if they amount to an abuse of the process of law or if the FIR does not disclose any offence. (Para 26)

Facts of the case:
Petitioner challenged the FIR registered by a close associate alleging cheating, arguing the complaint concerned a civil matter regarding non-payment of a loan without substantiating allegations of deceit or threat.

Findings of Court:
FIR registered did not disclose a cognizable offence under relevant sections; no concrete evidence for deceit or dishonest intention was presented.

Issues: Whether the FIR allegations established a cognizable offence under sections concerning cheating and breach of trust.

Ratio Decidendi: A mere failure to repay money does not constitute an offence under Sections 406 or 420 IPC; fraudulent or dishonest intention must be evident from the transaction's inception.

Result: FIR quashed.

Table of Content
1. heard legal representation for the parties. (Para 1)
2. petitioner's challenge against fir registration. (Para 2)
3. details of petitioner's personal circumstances. (Para 3)
4. petitioner's argument against the complainant's position. (Para 4 , 5 , 6 , 7)
5. respondent no. 3's challenges to the petition's validity. (Para 8)
6. controversy over fir registration and its basis. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16)
7. legal precedents cited by both parties. (Para 17 , 19)
8. analysis of thought on fir and complaint details. (Para 20 , 21)
9. legal interpretation of breach of contract versus criminal offense. (Para 22 , 23 , 24 , 25 , 26 , 27)
10. acknowledgment of abuse of legal process in this case. (Para 28)
11. decision to quash the fir based on legal grounds. (Para 29)
12. final disposal of the petition. (Para 30 , 31)

JUDGMENT :

Golmei Gaiphulshillu, J.

[1] Heard Mr. L. Shashibhushan, learned senior counsel appearing for the petitioner; Mr. Samarjit Hawaibam, learned PP appearing for the State and Mr. H. Kenajit, learned counsel appearing for the respondent No. 3 at length.

[2] The present petition has been filed by the petitioner challenging the legality, correctness and propriety in registration of the FIR with a prayer for quashing and setting aside of FIR No. 97(7)2016 of City Police Station, Imphal, Manipur dated 06.07.2016 registered by respondent No. 2 against the petitioner under Sections 34 r/w 406, 420 and 506 of IPC even though no offence was made out.

For easy reference and for convenience, the above mentioned Sections are extracted herein below:

406. Punishment for criminal breach of trust -

Whoever commits criminal breach of trust shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.

420. Cheating and dishonesty inducing delivery of property -

Whoever cheats and thereby dishonestly induces the person deceived to deliver any property to any person, or to make, alter or destroy the whole or any part of a valuable security, or anything which is signed or sealed, and which is capable of being converted into a valuable security, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.

506. Punishment for criminal intimidation

Whoever commits, the offence of criminal intimidation shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both;

If threat be to cause death or grievous hurt, etc. - And if the threat be to cause death or grievous hurt, or to cause the destruction of any property by fire, or to cause an offence punishable with death or (imprisonment for life), or with imprisonment for a term which may extend to seven years, or to impute, unchastity to a woman, shall be punished with imprisonment of either description for a term which may extend to seven years, or with fine, or with both.”

[3] The case of the petitioner is that he was running a retail medicine shop namely, “M/S Kanchan Medical Store” at Thangal Bazar. But, his father was diagnosed to be suffering from Parkinson aliment. Due to his father’s illness, his family has shifted to Jaipur and the petitioner has been settling between Imphal and Jaipur and decided to wound up all his business interest at Imphal and shift base to Jaipur except the share portion of the property including the residential building jointly recorded in the name of his father and his 2 (two) brothers exclusively belonging to them. Further due to his father’s illness, the petitioner was managing the affairs of the family.

[4] The learned counsel for the petitioner submits that the respondent No. 3, who is the complainant in FIR Case no. 97(7) 2016 City P.S. u/s 406/420/506/34 of IPC, is a close friend of the petitioner and also running a retail outlet of ‘Peter England’. He, further, submits that the respondent No. 3 proposed to the petitioner to buy his fa





















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