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2026 Supreme(Online)(Guj) 8419

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
M. K. Thakker, J
Mahesh Rameshbhai Patel – Appellant
Versus
Vadodara Rural Police Station – Respondent
R/CRIMINAL MISC.APPLICATION NO. 472 of 2017 | R/CRIMINAL MISC.APPLICATION NO. 1621 of 2017



Advocates:
For the Appellants/Petitioners: Parthiv B Shah, Suraj Shukla
For the Respondents: Bhuvnesh Gahlot, Ronak Rawal

Criminal proceedings for cheating and forgery cannot be sustained against bona fide purchasers in the absence of evidence showing dishonest or fraudulent intent at the inception of the transaction. A civil dispute regarding property title cannot be converted into criminal litigation to harass subsequent purchasers.

Headnote:(A) Indian Penal Code, 1860 - Sections 406, 420, 465, 467, 468, 471, 452, 120

(B) and 114 - Criminal Procedure Code - Inherent powers - Quashing of FIR - Dispute originating from property transactions - Requirement of fraudulent or dishonest intention for offence of cheating - Mere breach of contract does not give rise to criminal prosecution unless dishonest intention is present at the inception of the transaction. (Paras 4.1, 5)

(B) Forgery - Ingredients of - Definition of - Intent to cause it to be believed that a document was made by a person who did not authorize it - Grievance regarding false assertions in a sale deed lies with the vendee, not the third-party purchaser - Continuation of criminal proceedings against a bona fide purchaser constitutes an abuse of the process of law when no involvement in original deception is established. (Paras 4.1, 5)

Facts of the case:
The petitioners sought the quashing of an FIR alleging offenses including cheating, forgery, and breach of trust regarding the transfer of a residential property. The allegations centered on the claim that the original power of attorney used to sell the property was fabricated. The petitioners, representing the second and third purchasers of the subject property, contended that they were bona fide purchasers who had conducted due diligence and obtained title clearance before completing the transaction. They argued that the proceedings were an attempt to criminalize a civil dispute.

Findings of Court:
The court observed that the applicants were subsequent purchasers who had followed standard procedures for property acquisition. There was no evidence of initial dishonest intent on the part of the applicants, nor had any civil litigation been initiated by the original owner against them to challenge the validity of the sale deeds. Relying on established precedents, the court noted that the distinction between a civil breach of contract and criminal cheating is distinct, and the absence of fraudulent inducement at the starting point of the transaction negated the core elements of the criminal offenses alleged.

Issues: The central issues were whether the registered sale deeds constituted actionable forgery or cheating in the context of the applicants and whether the criminal proceedings against subsequent bona fide purchasers were an abuse of the process of law.

Ratio Decidendi: Criminal proceedings cannot be used as a tool to settle civil disputes. Mere breach of obligation or failure to honor a contract does not automatically constitute criminal offenses of cheating or forgery unless the element of fraudulent or dishonest intention at the inception is clearly established. As the applicants were not involved in the alleged fabrication of documents and were not the originators of the disputed power of attorney, dragging them into criminal litigation constitutes an abuse of the court's process.

Result: Application allowed; the impugned FIR and all consequential proceedings are quashed and set aside.

Table of Content
1. factual context of contested property transaction and criminal fir. (Para 1 , 2 , 3)
2. applying bhajan lal criteria to determine abuse of legal process. (Para 4)
3. distinguishing between civil breach of contract and criminal cheating/forgery. (Para 5 , 6)
4. quashing of criminal proceedings to prevent abuse of process of law. (Para 7 , 8)

JUDGMENT

1. This application is filed for quashment of the FIR registered with Vadodara Rural Police Station, Vadodara City being I-CR No.2/2017 for the offences punishable under section 406, 420, 465, 467, 468, 471, 452, 120(B) and 114 of IPC which is filed against five accused persons and the present applicants are stated to be accused no.2 and 3.

2. As per the allegations made in the FIR the complainant who is friend of the original owner namely Johnson Solomon Parmar and Prabha Johnson Parmar who are staying at the U.S have purchase being Bungalow No.C-34/35, River Way Residency in Village Sonar Kui, Sevasi Vadodara in the year 2009 and brother of the owner namely Nicolson Solomon Parmar by creating fabricated Power of Attorney have sold property to the accused no.2 who is applicant herein for the sale consideration for Rs.43,50,000/- by executing the registered sale deed being registration no.5777/2014. As per the allegations, the accused no.2 has further sold the property to accused no.3 by executing sale deed being registered sale deed no.4845/2015 for the sale consideration of Rs.49,00,000/- on 03.06.2015. Claiming the forgery, along with other offence of cheating and breach of trust, the impugned FIR is filed on 03.01.2017 stating period of offence from 11.07.2016 to 05.11.2016. This Court, while issuing the notice, has ordered no coercive steps against the applicant and in that background, no charge sheets are filed against the present applicants and FIR is subject matter of challenge before this Court.

3. Heard learned advocate Mr.Parthiv Shah for the applicant-accused no.2 and learned advocate Mr.Suraj Shukla for the applicant-accused no.3 as well as learned advocate Mr.Bhuvnesh Gahlot for the complainant and learned APP Mr.Ronak Rawal for the State.

3.1. It is submitted by learned advocates for the applicant that the present application are the bona fide purchaser who, after following the due procedure and getting the title clearance on giving the public advertisement, has purchased the property after making payment of sale consideration. It is submitted that Special Civil Suit is filed being S.Cr.A.No.458/2016 by one Mohit who is the accused no.4 against the present applicant accused-no.3. It is submitted that no suit is filed by the complainant for seeking cancellation of sale deed which is executed in favour of the present applicants. It is submitted that, in fact, present applicants are also victims of the offence which is committed by accused no.1 against them on the basis of so called power of attorney which was never in existence in favour of applicant no.1. It is submitted that both the sale deeds are registered before the Sub registrar and therefore, continuation of proceedings would be nothing but abuse of process of law.

3.2. Learned advocates, for the applicants, relied of the decision rendered by the Apex Court in the case of Devendra & Ors vs State of U.P reported in 2009 (7) SCALE 613 and the judgment rendered by this Court in the case of Arvindbhai Shantilal Modi Vs State of Gujarat in Criminal Miscellaneous Application No.3615/2009. By relying on the said decision it is submitted that in identical case this Court has held that there is no cheating, breach of trust or forgery made out in the case and therefore, FIR is nothing but abuse of process of law and in that background the impugned FIR deserves to be set aside. Learned advocate Mr.Bhuvnesh Gahlot, appearing for the complainant, has submitted that the conspiracy was hatched by the accused no.1 in connivance with other accused as on the basis of the forged power of attorney initially the MO

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