IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
G. Sri Devi, J.
Madhiraju Radhakishan Rao and Ors. – Petitioner
Versus
State of Telangana and Ors. – Respondents
Criminal Petition No.15140 of 2014
Decided On : 20-04-2021
Criminal Procedure Code,1973 - Section 156 (3) - Indian Penal Code, 1860 - Sections 420, 468, 471, 406, 384 and 120-B read with Section 34 - Offence of Cheating – Criminal conspiracy – Charged - 2nd respondent/de facto complainant filed a private complaint against petitioners and two others before II-Additional Judicial First Class Magistrate for aforesaid offences, which was referred to police under Section 156 (3) of Cr.P.C - Basing on said reference, police, Police Station, registered a case in Crime No. and took up investigation - It is stated in private complaint that since A-1 to A-4 represented that they are absolute owners and possessors of land admeasuring Ac.0.34 gts. in Sy.No.96 situated at Revenue Village, District, 2nd respondent and others entered into an agreement of sale with A-1 to A-4 to purchase said land by paying an advance amountwith a condition to receive balance sale consideration after thorough survey within ten months from date of agreement - It is further stated that accused failed to conduct survey even after lapse of ten months - It is further stated that A-1 to A-4 with a mala fide intention to obtain original agreement from 2nd respondent and others, obtained their signatures on blank papers in order to prepare a fresh agreement - Whether said allegations are prima facie cannot notice correspondences exchanged by parties and other admitted documents – Held, On over all consideration of entire material placed on record, contentions urged before this Court by learned counsel for petitioners and learned counsel for 2nd respondent as well as the law declared by Apex Court in judgments referred to supra, it is suffice to conclude that contentions raised by learned Counsel for 2nd respondent are without any substance and material produced before this Court directly indicates mala fides in prosecution of criminal proceedings against petitioners, so also, by abuse of process of Court, as an arm-twisting method to bring petitioners to the terms of the 2nd respondent and to cloak a civil dispute with criminal nature, he has resorted to criminal litigation - Court find that it is a fit case to exercise inherent jurisdiction under Section 482 Cr.P.C. to quash proceedings against petitioners in Crime No.580 of 2014 of Khanapuram Haveli Police Station, Khammam District, for the offences punishable under Sections 420, 468, 471, 406, 384 and 120-B read with Section 34 of I.P.C. - Criminal Petition is allowed.
ORDER :
1. The petitioners, who are accused Nos.1, 3 and 4 in Crime No.580 of 2014 of Khanapuram Haveli Police Station, Khammam District, filed this Criminal Petition under Section 482 Cr.P.C. to quash the proceedings in the above crime, which was registered against the petitioners and two others for the offences punishable under Sections 420, 468, 471, 406, 384 and 120-B read with Section 34 of I.P.C.
2. The 2nd respondent/de facto complainant (hereinafter referred to as the “2nd respondent”) filed a private complaint against the petitioners and two others before the II-Additional Judicial First Class Magistrate, Khammam, for the aforesaid offences, which was referred to the police under Section 156 (3) of Cr.P.C. Basing on the said reference, the police, Khanapuram Haveli Police Station, registered a case in Crime No.580 of 2014 and took up investigation. It is stated in the private complaint that since A-1 to A-4 represented that they are the absolute owners and possessors of the land admeasuring Ac.0.34 gts. in Sy.No.96 situated at Velugumatla Revenue Village, Khammam District, the 2nd respondent and others entered into an agreement of sale with A-1 to A-4 to purchase the said land for Rs.45,00,000/- by paying an advance amount of Rs.10,00,000/- on 29.10.2013 with a condition to receive the balance sale consideration after thorough survey within ten months from the date of agreement. It is further stated that the accused failed to conduct survey even after lapse of ten months. Thereafter, on 07.02.2014, A-1 to A-4 lodged a complaint before the S.H.O., Khanapuram Haveli Police Station and to the Tahsildar, Khammam Urban Mandal, stating that the said property was sold away to the 2nd respondent and others and that A-5 is trying to encroach upon the property. It is further stated that A-1 to A-4 with a mala fide intention to obtain original agreement from the 2nd respondent and others, obtained their signatures on blank papers in order to prepare a fresh agreement, but they did not do so, instead they demanded the 2nd respondent and others to pay another Rs.10.00 lakhs for obtaining N.O.C. from Revenue Authorities. The 2nd respondent came to know that A-1 to A-4 created another agreement of sale in collusion with A-5 with an intention to knock away the property, which was already sold to the 2nd respondent and others. When the 2nd respondent and others went to the house of accused and demanded them to register the property by receiving the balance sale consideration, the accused threatened them with dire consequences by using filthy language.
3. Heard learned Counsel appearing for the petitioners/A-1, A-3 and A-5, learned Assistant Public Prosecutor appearing for the 1st respondent/State, learned Counsel appearing for the 2nd respondent and perused the record.
4. Learned Counsel for the petitioners would submit that the petitioners are innocent of the offences and they have been falsely implicated in the case. It is also submitted that even accepting the entire allegations to be true, still the offences as alleged would not be made out for the reason that the agreement entered into between both the parties itself is not a valid agreement. It is further submitted that much before entering into an agreement, both the parties have entered into a Memorandum of Understanding that they are entering into an agreement only for the purpose of namesake. There is a dispute with regard to the schedule property in respect of land in Sy.No.96. By an order dated 10.10.2014, the Revenue Divisional Officer, Khammam, while allowing R.O.R.Appeal No.A3/1381/2014 in favour of appellant No.5 therein, directed to issue a fresh R.O.R. pattadar pass book in favour of appellant No.5 in respect of land to an extent of Ac.0.34 gts. Against the said order, the accused have preferred an appeal before the Joint Collector, Khammam and the same is pending. As the disputes were going on in between A-1 to A-4 and A-5, they have entered into an agreement
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The main legal point established in the judgment is the requirement for allegations to constitute a cognizable offense and the application of the legal maxim 'Caveat Emptor' in property transactions.
The main legal point established in the judgment is the principle that the continuation of criminal proceedings would amount to an abuse of process of the Court, especially in the presence of pending....
The court held that criminal proceedings cannot continue when the underlying dispute is civil in nature, to prevent abuse of the judicial process.
The court established that civil disputes should not be cloaked as criminal offenses, emphasizing the need for clear evidence of criminal intent to sustain charges of cheating.
Inherent powers under Section 482 CrPC do not permit quashing proceedings when prima facie evidence of a crime is present, mandating a trial to ascertain truth.
The power to quash criminal proceedings should be exercised sparingly and only when the allegations do not disclose a prima facie case of a criminal offence.
The central legal point established in the judgment is that for an act to constitute an offence under Section 420 of the Penal Code, there must be fraudulent or dishonest inducement, and the absence ....
The court can exercise its inherent jurisdiction under Sec. 482 Cr.P.C to quash criminal proceedings if they amount to an abuse of the process of the court or if quashing the proceedings would serve ....
The main legal point established in the judgment is that when disputes between the parties constitute only civil wrong and not a criminal wrong, the Courts would not permit a person to be harassed. T....
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