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2025 Supreme(Online)(KER) 2995

HIGH COURT OF KERALA
A. BADHARUDEEN, J
ANANDAN R – Appellant
Versus
STATE OF KERALA – Respondent
Crl.MC 7867/2023



Advocates:
C.RAJENDRAN, B.K.GOPALAKRISHNAN, MANOJ RAJAGOPAL, R.S.SREEVIDYA, MANU M., B.RAGHUNATHAN, R.SRINATH(K/383/2007), K.JALADHARAN(K/656/2011), PUBLIC PROSECUTOR SRI M P PRASANTH

To sustain a conviction under Sections 409 and 420 IPC, the prosecution must establish specific allegations and necessary legal elements, which were not met in this case.

Headnote:(A) Code of Criminal Procedure, 1973 - Section 482 - Quashing of FIR - The accused sought to quash the FIR and final report in a case alleging misappropriation and cheating. The court found that the allegations did not prima facie establish the offences under Sections 409 and 420 of IPC, as the necessary ingredients were not met. (Paras 3, 4, 20)

(B) Criminal Breach of Trust - The court emphasized that to sustain a conviction under Section 409 IPC, it must be proven that the accused was entrusted with property and committed criminal breach of trust. (Paras 9, 13)

(C) Cheating - The court noted that for Section 420 IPC, deception must be established, and mere breach of contract does not suffice for criminal liability. (Paras 15, 17)

Facts of the case:
The petitioner, as power of attorney holder, was accused of misappropriating funds and gold ornaments. The court found the allegations lacked sufficient evidence to warrant trial.

Findings of Court:
The court quashed the FIR and final report, concluding that the allegations did not meet the legal standards for the offences charged.

Issues: The main issues were whether the allegations constituted criminal breach of trust and cheating under IPC.

Ratio Decidendi: The court ruled that the allegations did not prima facie establish the necessary elements for the offences under Sections 409 and 420 IPC, warranting quashment of the proceedings.

Result: Crl.M.C stands allowed.

ORDER

This Criminal Miscellaneous Case has been filed under Section 482 of the Code of Criminal Procedure by the sole accused in C.C.No.315 of 2016 on the files of the Judicial First Class Magistrate Court (Temporary), Sasthamcotta, arose out of Crime No.1102 of 2010 of Sooranadu Police Station, seeking the relief to quash Annexures A1 FIR, A4 final report and further proceedings in the above case.

2. Heard the learned counsel for the petitioner and the learned counsel for the defacto complainant as well as the learned Public Prosecutor in detail. Perused the records available and the decisions placed by the learned counsel for the petitioner.

3. The prosecution case is that the accused, who was appointed as the power of attorney holder of the defacto complainant to manage the day-to-day affairs of SPMUP School, Ayikunnam, exceeded the power he was given as the Power of Attorney Holder and appointed one Rajeev.V, as Peon on 11.06.2007 and obtained Rs.6 lakh from him. The further allegation is that he also misappropriated gold ornaments weighing 90 grams entrusted by the defacto complainant to arrange air ticket for her by pledging the same for excess amount and thereby he committed the offences punishable under Sections 409 and 420 of the Indian Penal Code (` IPC ’ for short).

4. While seeking quashment of the crime, the learned counsel for the petitioner would submit that the entire allegations are false. According to the learned counsel for the petitioner, admittedly the defacto complainant appointed the petitioner as a power of attorney holder to manage the school and as per the power of attorney executed by the defacto complainant in favour of the petitioner, he was authorised to make appointments also. Therefore, the appointment is perfectly justifiable and none of the offences would attract. However, the learned counsel fairly conceded that even though on reading the power of attorney, power of appointment also was given, as per Annexure A7 judgment in W.P(c).No.25919/2007 on 30.06.2009 this Court found that the power of attorney executed by the defacto complainant in favour of the petitioner did not confer the power to make appointments. In view of Annexure A7 judgment in W.P(c).No.25919/2007, the contention raised by the petitioner that he was given power of appointment would not succeed.

5. In addendum, it is submitted by the learned counsel for the petitioner that even when the whole allegations are taken as a gospel of truth, offence under Section 409 of IPC would not attract. According to the learned counsel for the petitioner, the ingredients to attract of is not made out, prima facie. Regarding the allegation as to commission of offence under Section 420 of , it is submitted by the learned counsel for the petitioner that initially the allegation of the defacto complainant was that the accused pledged 90 grams of gold ornaments for the purpose of obtaining air ticket in excess of the amount required and misappropriated the money. But later the statement of the defacto complainant is that after her arrival from abroad when she had given money to release the pledged gold ornaments, the accused, after receiving the money, did not utilise the same for the said purpose and thereby cheated her. Since the allegations regarding commission of offence under of are contrary in the above line, the said offence also would not attract. The learned counsel placed decision of the Apex Court reported in [2012 KHC 4612 : 2012 (10) SCALE 299 : AIR 2013 SC 181 : 2012 (10) SCC 741 : 2013 (1) SCC (Civ) 212 : 2013 (1) SCC (Cri) 120],Geeta Mehrotra and another v. State of U.P and another, to contend that when the FIR doesn’t disclose specific allegations as to commission of the offences, quashment of the FIR is liable to be allowed. Another decision reported in [2012 KHC 4418 : 2012 (8) SCC 547 : AIR 2012 SC 3242 : 2012 CriLJ 4317],Sadhupati Nageswara Rao v. State of Andhra Pradesh, where the Apex Court considered the offence und

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