Case Note & Summary
The petitioners, who were accused in C.R. No.108 of 2014 registered at Ghatkopar Police Station and subsequently transferred to EOW as CR No.40 of 2014, filed a petition under Article 226 of the Constitution of India read with Section 482 of the Code of Criminal Procedure, 1973 (CrPC) seeking quashing of the FIR. The FIR was lodged by the respondent no.2, Jyothi Dinesh Parekh, alleging offences under Section 420 read with Section 34 of the Indian Penal Code, 1860 (IPC). The dispute arose out of an agreement for sale of a property where the respondent claimed that the petitioners had not paid the full consideration amount. The petitioners contended that the dispute was purely civil in nature and that the criminal complaint was filed only to pressurize them into making payment. The court, after hearing the parties, observed that the allegations in the FIR did not disclose any criminal offence as there was no evidence of fraudulent or dishonest intention at the inception of the transaction. The court held that the essential ingredients of cheating under Section 420 IPC were missing and that the dispute was essentially contractual. Consequently, the court allowed the petition and quashed the FIR, holding that the continuation of criminal proceedings would be an abuse of the process of law.
Headnote
A) Criminal Procedure Code - Quashing of FIR - Section 482 CrPC read with Article 226 of Constitution of India - Abuse of process of law - Dispute regarding payment of balance sale consideration under an agreement for sale - Held that where the dispute is essentially civil in nature, criminal proceedings cannot be used as a tool for recovery of money - FIR quashed (Paras 1-10). B) Indian Penal Code - Cheating - Section 420 IPC read with Section 34 IPC - Ingredients of cheating - Absence of fraudulent or dishonest intention at inception - Held that mere breach of contract does not constitute an offence of cheating unless there is a clear intention to deceive from the beginning - FIR quashed (Paras 1-10).
Issue of Consideration
Whether the FIR under Section 420 read with Section 34 IPC should be quashed on the ground that the dispute is purely civil in nature and the criminal proceedings are an abuse of the process of law.
Final Decision
The petition is allowed. C.R. No.108 of 2014 (later CR No.40 of 2014) registered at Ghatkopar Police Station and EOW, Mumbai, respectively, is quashed and set aside.
Law Points
- Quashing of FIR
- Abuse of process of law
- Civil dispute masquerading as criminal case
- Section 482 CrPC
- Article 226 Constitution of India
- Section 420 IPC
- Section 34 IPC
