Case Note & Summary
The applicant, Rajan Manoharlal Dhaddha, a government contractor and transporter, filed an application under Section 482 CrPC seeking quashing of FIR registered at Police Station Saoner, District Nagpur, in Crime No. 254/07 for offences under Sections 406, 409, 109 of the Indian Penal Code read with Sections 3 and 7 of the Essential Commodities Act. The applicant had a written contract with the Government for transporting foodgrains from one place to another in Nagpur district, which was initially for one year from 10th April 2003 and extended from time to time. The allegations in the FIR were that the Tahsildar, Saoner, verified stock of wheat and rice in the Government godown in October 2007 and found some stock less in quantity. The applicant contended that the godown manager, Dattatraya Bandelwar, was responsible for any illegal disposal, and that as per records, all 51 trucks reached the godown with due acknowledgments. The main argument was that the dispute was purely civil in nature. The court, after hearing both sides, observed that the applicant had performed his contractual obligations and there was no allegation of dishonest misappropriation or conversion. The court held that the essential ingredients of criminal breach of trust were absent, and the dispute was contractual. Consequently, the FIR and all proceedings were quashed.
Headnote
A) Criminal Law - Quashing of FIR - Civil vs Criminal Dispute - Sections 406, 409, 109 Indian Penal Code, 1860 read with Sections 3 and 7 Essential Commodities Act, 1955 - Applicant, a government contractor, was prosecuted for alleged short supply of foodgrains - Court held that the dispute was purely contractual and civil in nature, as the applicant had delivered the goods as per contract and acknowledgments were on record - No dishonest intention or criminal breach of trust was made out - FIR quashed (Paras 1-8).
Issue of Consideration
Whether the FIR registered against the applicant for offences under Sections 406, 409, 109 IPC read with Sections 3 and 7 of the Essential Commodities Act should be quashed on the ground that the dispute is purely of a civil nature.
Final Decision
The court allowed the application and quashed the FIR registered at Police Station Saoner in Crime No. 254/07 and all proceedings arising therefrom.
Law Points
- Criminal breach of trust requires dishonest misappropriation or conversion
- mere contractual dispute does not constitute criminal offence
- quashing of FIR when allegations are civil in nature
- Essential Commodities Act provisions not attracted without mens rea





