A mere breach of contract does not preclude a finding of criminal cheating; fraud must be established at the agreement's inception.

1. The petitioner has filed the instant writ petition under Art.226 of the Constitution of India challenging the First Information Report registered against her by the police station Raipur Kotwali being Crime No. 0071/2021 on 17.3.2021 for commission of offence punishable under S.420 of IPC.

2. The brief facts, as projected by the petitioner, are that the petitioner is the owner of the house No. 41/160 constructed over the land bearing Khasra No. 870 (part) ad - measuring area 2300 sq. ft. situated at Patwari Halka No. 106A / 46, RI Circle Raipur, Maulana Abdul Rauf Ward No. 41, Baijnathpara, Raipur, which she has purchased from its erstwhile owner - Smt. Ahmadi Mustak vide registered sale deed dated 24.09.2014 for valuable consideration of Rs. 73,00,000/-.

3. The petitioner has entered into an agreement on 07.06.2017 with respondent No. 3 - Sarik Memon. The relevant terms of the agreement (Annexure P - 3) are extracted below: -
[Editors Note: Vernacular Matter Omitted]

4. Learned counsel appearing for the petitioner would submit that the petitioner has obtained loan of Rs. 39,65,617/- from Magma Housing Finance Ltd., Raipur. The said loan is payable in 20 years by making payment of installment of Rs.46,864/-per month, and in case the petitioner fails to repay the loan amount, the Finance Company may proceed against her as per the Secularization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short " SARFAESI Act "). He would further submit that due to ongoing Covid - 19 pandemic situation, the financial position of the petitioner is deteriorating, therefore, under such circumstances she has approached Sarik Memon, respondent No. 3 and entered into an agreement to sell the house for an amount of Rs. 80 Lacs and out of which an amount of Rs. 40,00,000/- has been paid to her through RTGS.
It has been further contended that Rs. 40 Lacs obtained by the petitioner from respondent No. 3 has been utilized by her for unburdening herself from further financial liability to secure the possession of the said house. It has been further contended that the petitioner has come to know through her husband that respondent No. 3 carries on the business of financing and since the petitioner and respondent No. 3 both belong to same community, the petitioner's husband has believed on the impression given by respondent No. 3 and the petitioner through her husband has started making payment of different amounts as and when obtained by carrying out the business of sale of scrap and sale / purchase of old vehicles. The petitioner is having whatsapp images of different dates certifying payment of amount by petitioner's husband from his mobile to mobile number of respondent No. 3. From bare perusal of the whatsapp images, it would be evident that certain payment has been made. It has been further contended by learned counsel for the petitioner that the petitioner has made various payments through her husband to respondent No. 3 including payment of Rs.1,00,000/- while selling and purchasing one Bolero vehicle. He would further submit that the petitioner has made payment of Rs.88,00,000/- to respondent No. 3 and respondent No. 3 has already received the principal amount but interest amount is yet to be paid.

5. Thus, against the total payment of Rs.40,00,000/-, respondent No. 3 has already received Rs.88,00,000/-, which is double the amount paid to the respondent No. 3. Thereafter, the petitioner has received a legal notice dated 3.7.2020 sent by respondent No. 3 through his counsel calling upon the petitioner to register the sale deed in favour of respondent No. 3 as well as he will file a civil suit against the petitioner for specific performance of contract. On receipt of said notice, the petitioner through her counsel has given reply making various averments including of obtaining blank cheques etc. from the petitioner's husband and, thereafter, police has issued notice under S.91 of Cr. P. C. to the petitioner,