Merely failing to fulfill a contract does not constitute criminal cheating unless intent to deceive is established.

CORAM: HONOURABLE MR. JUSTICE ANIL KUMAR SINHA ORAL ORDER

12 17-12-2025 CRIMINAL MISCELLANEOUS No.14780 of 2025

1. Heard learned Counsel for the petitioner and learned Additional Public Prosecutor for the State.

2. This application, for grant of anticipatory bail, arises out of Madhepura Police Station Case No. 1054 of 2024, disclosing offences under Sections 406 , 420, 34 of the Indian Penal Code .

3. As per the prosecution case, the informant/Opposite Party No. 2, lodged the written report before the police that on 10.09.2024, “Bridge and Roof Company Ltd., Kolkata” (in short Bridge and Roof Company), was awarded a contract for installation of solar lights under the CM Solar Light Scheme. Informant who is the proprietor of Random Infratech Solution, Patna, obtained the work from Bridge and Roof Company for the district of Saran, Siwan, Gopalganj, Supaul, Madhepura, Purnea, Katiyar, Kishanganj, Banka and Bhagalpur. The informant in turn handed over the same work to M/s Vikrant Enterprises, Purnea, for which an agreement was entered into between the informant and the proprietor of Vikrant Enterprises, but the work was not completed by Vikas Kumar Vikrant within the stipulated time.

4. Thereafter, informant entrusted the work to petitioner no. 1 for installation of solar street lights in the district of Purnia and Madhepura. The original petitioner No. 2 i.e. Vimal Kumar Bibhu was to complete the work of solar street light in the district of Madhepura. It has further been alleged that warehouse has been established at Singheshwar, Madhepura, for storage of solar lights installation at Purnea and Madhepura. For the installation of solar lights, a sum of Rs 10,56,000/- was deposited by the informant in the bank account of petitioner no. 1 and Rs 1,00,000/- was given on 21.12.2023 and Rs 4,00,000/- was given to petitioner no. 1 in cash.

5. It has also been alleged that petitioner no. 1 was given 1309 pieces of solar lights for installation, but out of that only 1040 pieces of solar lights were installed in Purnea district and the original petitioner No. 2/Vimal Kumar Bibhu was given 1869 pieces of lights, but he installed 1137 pieces of solar lights within Madhepura district. As such, the allegation is that the petitioners did not install total 1001 pieces of solar lights worth Rs. 2,39,50,276/-.

6. Learned senior counsel for the petitioner submits that the contract for installation of solar lights was awarded by the State Government in favor of Bridge and Roof Company. The sub contract was awarded by Bridge and Roof Company, in favor of the informant, namely, Random Infratech Solution, Patna. Random Infratech Solution, in turn, granted another sub contract to M/s Vikrant Enterprises, Purnea and agreement in this regard, was entered into between M/s Vikrant Enterprises and the informant, i.e., Random Infratech Solution. Subsequently, thereafter, another agreement was entered between M/s Vikrant Enterprises, Purnea and the petitioner.

7. He further argued that upon perusal of the allegation made in the FIR, it appears that the allegation made therein gives rise to a civil dispute arising out of contract. Every breach of contract and/or breach of promise cannot be said to be an offence of cheating, unless there is a specific allegation that the contract work was entered with an intention to cheat from the very beginning/inception. Out of 1309 pieces of solar lights, the petitioner no. 1 has installed 1040 pieces of solar lights, and original petitioner no. 2 installed 1137 pieces of solar lights out of 1869 pieces of solar lights. This itself goes to show that the intention of the petitioner was not to cheat and or misappropriate the property of the informant.

8. Referring to Annexure 2, learned counsel submits that an agreement was entered into between M/s Vikrant Enterprises and the petitioner for installation of solar lights in which the rate of solar lights wa