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2026 Supreme(Online)(Mad) 42705
IN THE HIGH COURT OF JUDICATURE AT MADRAS
G.K. Ilanthiraiyan, J
BRINDA DEVI – Appellant
Versus
THE INSPECTOR OF POLICE (CRIME) – Respondent
CRL.O.P.No.17486 of 2023 | Crl.MP.No.11413 of 2023
For the Appellants/Petitioners: No appearance
For the Respondents: A. Gopinath, W.M. Abdul Azeez
A dispute arising from the failure to repay a loan is a civil matter; such transactions do not attract criminal liability under Sections 406 and 420 of the IPC unless specific criminal intent is established.
Headnote:(A) Criminal Law - Quashing of FIR - Money Transaction - Failure to repay a borrowed loan amount is essentially a civil dispute and does not attract criminal liability under Sections 406 and 420 of the IPC. (Para 4)
Issues: Whether the failure to repay a borrowed sum of money attracts criminal liability under Sections 406 and 420 of the IPC.
| Table of Content |
|---|
| 1. procedural history and filing of the petition to quash the fir. (Para 1 , 2 , 3) |
| 2. loan repayment failure is a civil dispute, not a criminal offense. (Para 4) |
| 3. quashing of the fir and disposal of the petition. (Para 5) |
PRAYER:
Criminal Original Petition is filed under Section 482 of Cr.P.C. praying to call for the records pertaining to the First Information Report in Cr.No.421 of 2023 on the file of the Inspector of Police(crime), Poonamallee and quash the same.
O R D E R
1. This criminal petition petition has been filed to quash the F.I.R. in Cr.No.421 of 2023 on the file of the first respondent.
2. The learned counsel for the second respondent submitted that already the entire bundle of this case has been handed over to the second respondent along with change of vakalat.
3. However, so far the second respondent did not engage any counsel to appear before this court on her behalf.
4. Further, though the learned counsel for the petitioner is also absent today, on perusal of FIR and other documents, it is revealed that on the complaint lodged by the second respondent, the first respondent registered FIR in crime No.421 of 2023 for the offence punishable under Sections 406 & 420 of IPC on the allegation that the petitioner borrowed a sum of Rs.10,00,000/- from the second respondent as loan on the assurance that the same would be repaid in three months. However, within the said three months, the accused did not repay the said amount and it was questioned by the second respondent. At that time, the second respondent was threatened with dire consequences. Therefore, all the allegations are relating to money transaction between the accused and the second respondent. If at all the accused failed to repay the said amount, the second respondent ought to have approached the civil court for appropriate relief. Therefore, no offence under Sections 406 and 420 of IPC is attracted against the petitioner. Therefore, this Court is inclined to quash the impugned FIR.
5. Accordingly, this criminal original petition is allowed and the entire proceedings in respect of F.I.R. in Cr.No.421 of 2023 on the file of the first respondent, is quashed. Consequently, connected miscellaneous petition is closed.
20.04.2026 Index : Yes/No Neutral citation : Yes/No Speaking/non-speaking order lok
