Case Note & Summary
The petitioners, Eng. Sheldon S. Martins and Neesha Varela, filed Criminal Writ Petitions under Articles 226 and 227 of the Constitution of India and Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of FIR No.167/2019 registered at Panaji Police Station for offences under Sections 406 and 420 read with Section 34 of the Indian Penal Code, 1860. The FIR was lodged by respondents no.3 and 4, who were purchasers of apartments from the petitioners' partnership firm. The dispute arose from an Agreement for Sale dated 27.03.2015, where the petitioners agreed to sell flats to the respondents. The petitioners alleged that they handed over possession and called upon the respondents to execute the Deed of Sale, but the respondents failed to respond. Instead, the respondents filed a complaint before the National Consumer Disputes Redressal Commission (NCDRC) and later lodged the FIR alleging that the flat sold to respondent no.3 had an area of 112.72 sq. mts. instead of the agreed 119.58 sq. mts., and that the petitioners failed to execute the sale deed despite receiving payment. The petitioners contended that the dispute was purely civil in nature, involving breach of contract, and no criminal intent was made out. The court, after hearing arguments, held that the allegations did not disclose the essential ingredients of cheating or criminal breach of trust. The dispute pertained to a contractual obligation regarding area and execution of sale deed, which were civil matters. The court found no dishonest intention at the inception of the transaction and noted that the respondents had already approached the NCDRC for the same grievance. Consequently, the court quashed the FIR to prevent abuse of the process of law, allowing the petitions.
Headnote
A) Criminal Law - Quashing of FIR - Inherent Powers - Sections 406, 420 IPC read with Section 34 IPC - Section 482 CrPC - The petitioners sought quashing of FIR alleging cheating and criminal breach of trust in a property sale transaction. The court held that the dispute was purely civil in nature, arising from breach of contract, and no criminal intent was made out. The FIR was quashed to prevent abuse of process of law. (Paras 1-10) B) Criminal Law - Cheating - Ingredients - Section 420 IPC - The court examined whether the allegations disclosed the essential ingredients of cheating, namely deception and fraudulent inducement. It found that the dispute related to area discrepancy and failure to execute sale deed, which were civil matters. No dishonest intention at the inception was established. (Paras 5-8) C) Criminal Law - Criminal Breach of Trust - Section 406 IPC - The court noted that for an offence under Section 406 IPC, there must be entrustment of property and dishonest misappropriation. In this case, the transaction was a sale agreement, not entrustment, and the allegations did not satisfy the requirements of criminal breach of trust. (Paras 5-8)
Issue of Consideration
Whether the FIR registered under Sections 406 and 420 read with Section 34 of IPC can be quashed when the dispute is essentially of a civil nature.
Final Decision
The court allowed the petitions and quashed FIR No.167/2019 registered at Panaji Police Station for offences under Sections 406 and 420 read with Section 34 of IPC.
Law Points
- Criminal breach of trust
- Cheating
- Quashing of FIR
- Civil dispute
- Section 482 CrPC
- Article 226 Constitution of India
