AI Overview...
Agreement of Sale Not Executed for Three Years and Offence under Section 420 IPC
Main Points and Insights
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Delay in Execution of Sale Deed: Several cases highlight that a delay exceeding three years in executing a sale deed, despite an agreement, does not automatically constitute an offence under Section 420 IPC. For instance, in Majji Ramasatyam VS State of A. P. - Andhra Pradesh, the limitation period for filing a suit for specific performance is three years, and the delay beyond this does not necessarily imply cheating.
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Absence of Criminal Intent: Courts have emphasized that breach of agreement or delay alone does not prove criminal intent or cheating. In Sarabjit Kaur VS State of Punjab - Supreme Court, it was held that breach and conspiracy do not amount to cheating, and criminal proceedings would be an abuse of process if based solely on contractual breach after a long period.
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No Offence if Civil Remedies Exist: If the aggrieved party has civil remedies (like filing a suit for specific performance), criminal proceedings under Section 420 are generally not sustainable. This is supported by Amir Chand VS Prem Chand - Crimes, where no criminal offence was established because civil remedies were available and no fraudulent intent was proven.
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Factual and Procedural Clarifications: Courts have scrutinized whether the accused had dishonest intent or misrepresentation. In Mahindra & Mahindra Financial Services Ltd. & Anr. VS Delta Classic Pvt. Ltd. - Gauhati, the court noted that non-execution of sale due to rejection of loan applications did not amount to cheating, especially when no fraudulent intention was established.
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Offences Not Made Out in Several Cases: Multiple references (Reshma Priti VS Navdeep Singh, S/o Trilochan Singh Chawla - Chhattisgarh, PANKAJBHAI MAHESHBHAI KHATRI & ANR. vs STATE OF GUJARAT & ANR. - Gujarat, Kairunben Jamaluddin Kadri VS State of Gujarat - Gujarat) conclude that the ingredients of cheating under Section 420 IPC are not satisfied, especially when the breach is due to reasons like contractual delays, rejection of loan, or failure to act within statutory periods.
Analysis and Conclusion
The consistent judicial stance across these cases indicates that delay or non-execution of sale agreements beyond three years alone does not constitute an offence under Section 420 IPC. For an offence of cheating, there must be clear evidence of dishonest intent, misrepresentation, or fraudulent inducement. When civil remedies are available, and there is no proof of fraudulent intent, criminal proceedings are generally not justified, and the offence is not made out.
References: - Majji Ramasatyam VS State of A. P. - Andhra Pradesh - Sarabjit Kaur VS State of Punjab - Supreme Court - Amir Chand VS Prem Chand - Crimes - Mahindra & Mahindra Financial Services Ltd. & Anr. VS Delta Classic Pvt. Ltd. - Gauhati - Reshma Priti VS Navdeep Singh, S/o Trilochan Singh Chawla - Chhattisgarh - PANKAJBHAI MAHESHBHAI KHATRI & ANR. vs STATE OF GUJARAT & ANR. - Gujarat - Kairunben Jamaluddin Kadri VS State of Gujarat - Gujarat
Search Results for "Agreement of Sale Not Executed for Three Years no Offence under 420 Made out"
2019 0 Supreme(Kar) 1831 • India - Karnataka
RAVI MALIMATH, H.P.SANDESH
The Court also found that the accused persons had shared a common intention to defeat the sale agreement executed in favor of the ... The Court also found that accused Nos.2 to 5 had shared a common intention to defeat the sale agreement executed in favor of the ... The Court found that the offence in question was not compoundable and that the settlement arrived at between the parties was not ... This complainant insisted all the co....
• India - Crimes
RAJESH BINDAL
, still no steps were taken either to enforce the agreement to sell to get the sale deed executed or to get money paid to the petitioners ... refused to get the sale deed executed. ... IPC in similar facts opined the same deserved to be quashed as no offence of cheating was made out as the complainant had remedy ... Admittedly, the sale deed was to be executed on 31.5.2002, no civil suit was filed by the respondent/complainant and ....
2017 0 Supreme(AP) 526 • India - Andhra Pradesh
G.SHYAM PRASAD
of sale was executed - As per the terms of the agreement of sale, the petitioners-accused had to execute registered sale deed within ... limitation for filing the suit for specific performance is three years. ... agreement of sale is dated 02.05.2007 and that the complainant made demands by registered legal notice on 13.08.2010 and that the ... An agreement of sale#HL_E....
2023 3 Supreme 570 • India - Supreme Court
ABHAY S. OKA, RAJESH BINDAL
, conspiracy and criminal intimidation – Agreement to sell – Breach of contract does not give rise to criminal prosecution for cheating ... years after last date fixed for registration of sale deed – Allowing proceedings to continue would be abuse of process of Court ... A prayer was made for quashing of F.I.R. ... Reference in the aforesaid complaint was made to the Agreement to Sell executed between the parties. In addition, there was a reference t....
2017 0 Supreme(Guj) 543 • India - Gujarat
B.N.KARIA
Out of that amount, after receiving a sum of Rs. 80,000/-, an agreement to sale was executed on a stamp paper of Rs. 50/- before ... Thereafter, an agreement was made to sale a piece of land admeasuring 40.00, located on the middle part of the said land for a sale ... Case No. 1/2013 registered with Police Station, for the offence punishable and all other consequential proceedings arising therefrom ... As per the averment made in th....
2009 0 Supreme(Gau) 636 • India - Gauhati
I.A.ANSARI
Fact of the Case: The complainant entered into a hire-purchase agreement with the accused company for the purchase ... under Sections 420 and 409 read with Section 34 IPC. ... The court also emphasized the non-application of mind by the Magistrate in taking cognizance of both offences. ... In the month of January, 2006, accused No. 3, namely, Branch Manager of the accused company, asked the complainant to execute a fresh agreement for a further period of three years#HL_EN....
2025 Supreme(Online)(MAD) 1207 • India - IN THE HIGH COURT OF JUDICATURE AT MADRAS
Honourable Mr Justice M.NIRMAL KUMAR
IPC and confirmed the conviction and sentence for offence under Sections 323 and 420 IPC . In this case, the petitioner executed Exs.P2 and P3 which are not disputed. ... When the defacto complainant questioned the petitioner, he informed that the said Kaviya applied for housing loan and since it was rejected, the sale could not be executed and the advance amount received from the erstwhile agreement holder of Rs.3,15,000/- repaid through cheque. .......
2016 0 Supreme(Del) 76 • India - Delhi
MANMOHAN SINGH
of property - Suit of civil nature - Quashing of - Agreement was arrived at through broker - Sale and purchase of property - Amount ... Criminal Procedure Code, 1973 - Section 482 - Penal Code, 1860 - Sections 406, 420, 34 - Cheating - Sale ... is to be decided as to who is responsible for the same - Offences against the petitioners would not attract the penal provisions ... ... Section 420 IPC ... 13. Let us now examine whether the ingredients of an offen....
2021 0 Supreme(Chh) 13 • India - Chhattisgarh
SANJAY K.AGRAWAL
of document which attracts the penal provisions contained in Sections 120B, 420, 467, 468 & 471 of the IPC - Offences are not made ... out against the petitioner - There is no iota of allegations as to which offence the petitioner in consent with any one else, agreed ... Finding of the Court: Execution of sale deed is not denied and there is no falsification ... Proviso to Section 120A of the IPC provides that no agreement except an agreem....
2025 Supreme(Online)(Guj) 8824 • India - IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
J. C. DOSHI, J
IPC, stating these charges were not substantiated as the allegations do not prima facie amount to an offence. ... The court found no essential ingredients of criminal breach of trust or cheating constituting offences under Sections 406, 420, 114 ... By this application under Section 482 of the CrPC, the petitioners sought to quash FIR C.R.No.I-184 of 2014 for offences under the ... Even at the level of prima facie stage, it was impressed upon the Coordinate Bench of this Court that no ....
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