IN THE HIGH COURT OF MADHYA PRADESH AT GWALIOR BEFORE HON'BLE SHRI JUSTICE MILIND RAMESH PHADKE MISC. CRIMINAL CASE No. 1198 of 2020 DEVENDRA GUPTA AND OTHERS Versus THE STATE OF MADHYA PRADESH AND OTHERS Appearance:

Shri Rakesh Kumar Dubey - Advocate for the petitioners.

Ms. Kalpana Parmar - Public Prosecutor for the State.

RESERVED ON :- 11/02/2026 DELIVERED ON :- 19/02/2026 ORDER This petition, under Section 528 of BNSS (482 of CrPC) has been filed by the petitioner seeking following reliefs:

"अतः िनवेदन है (cid:11)क यािचकाकताग(cid:16) ण क(cid:19) (cid:20)(cid:21)तुत यािचका

को (cid:21)वीकार करते हुये यािचकाकताग(cid:16) ण को अपराध कमांक 358/2018 अंतगत(cid:16) धारा 420, 406 भा०द०(cid:32)व० पुिलस थाना कोतवाली ल(cid:36)कर, (cid:37)जला (cid:39)वािलयर क(cid:19) (cid:20)थम सूचना (cid:41)रपोट(cid:16) एवं (cid:44)यायालयीन कायव(cid:16) ाह(cid:45) को अपा(cid:21)त (cid:11)कये जाने का आदेश पा(cid:41)रत करने क(cid:19) कृपा कर(cid:49)।"

As per prosecution story, the complainant, Vinayak Gupta, son of Shri Daulataram Gupta, resident of Nayi Sadak, Lashkar, Gwalior, submitted a written complaint at Police Station Kotwali, alleging that the petitioners had committed criminal breach of trust and cheating, as they were engaged in the business of running a hotel and liquor trade and their hotel, namely, Bhagwati Lodge, had been lying in a dilapidated condition for a considerable period, the petitioners represented to the complainant that the hotel would be restarted and renovated, and they assured him that he would be made a partner in the said business. Relying upon their assurances, on 03.08.2018, the complainant paid a sum of Rs.5,00,000/- through Cheque No.191276. On the same day, he further transferred Rs.10,00,000/- to the account of Devendra Gupta (petitioner No.2) through RTGS from Axis Bank. Thus, a total sum of Rs. 15,00,000/- was paid by the complainant in good faith and in trust. It was alleged that from the very inception, the intention of the petitioners was dishonest and fraudulent. After the hotel commenced operations, when the complainant requested that the partnership arrangement be reduced into writing, the petitioners initially avoided the matter on one pretext or another. Subsequently, they outrightly refused to execute any partnership deed or acknowledge his share. On the basis of the said written complaint, alleged FIR bearing Crime No.358 of 2018 was registered against the petitioners at Police Station Kotwali, Lashkar, under Sections 420 and 406 of the Indian Penal Code. Aggrived by the aforesaid registration of FIR, the present petition has been filed.

Learned counsel for the petitioners submitted that the present FIR bearing Crime No. 358/2018 registered at Police Station Kotwali, Lashkar, District Gwalior under Sections 420 and 406 of the Indian Penal Code is wholly misconceived, malicious and amounts to gross abuse of the process of law, as the allegations contained in the complaint, even if taken at their face value and accepted in their entirety, do not satisfy the essential ingredients of the offences alleged against the petitioners.

It was further submitted that the dispute between the parties was purely civil in nature arising out of a business transaction and the complainant had voluntarily entered into a commercial understanding with the petitioners for renovation and operation of Bhagwati Lodge. The amount of Rs.15,00,000/- was advanced in furtherance of a proposed business arrangement and not by way of entrustment as contemplated under Section 406 IPC. There was no written agreement creating fiduciary obligation, dominion over property, or any specific entrustment so as to constitute criminal breach of trust.

It was further submitted that one of the essential ingredients of the offence under Section 420 IPC is dishonest or fraudulent intention at the very inception of the transaction and the complaint was completely silent on any material suggesting that at the time of receiving the amount, the petitioners had a p