Case Note & Summary
The petitioners, 13 individuals, filed a writ petition under Article 226 of the Constitution of India read with Section 482 of the Code of Criminal Procedure, 1973 (Cr.P.C.) seeking quashing of FIR No. 120 of 2015 registered at Amboli Police Station, Mumbai, for offences under Sections 406, 420, 504, 506 read with 34 of the Indian Penal Code, 1860 (IPC). The FIR was lodged by respondent No.2, Jagjit Girmile, alleging that the petitioners had cheated him in a transaction for sale of flats. The petitioners contended that the dispute was purely civil in nature, arising from a breach of contract, and that the criminal proceedings were an abuse of the process of law. The court examined the allegations in the FIR and found that the transaction was a simple agreement for sale of flats, and the complainant had paid earnest money. The court held that failure to perform a contractual obligation does not attract criminal liability unless there is fraudulent or dishonest inducement at the inception. The court also noted that the ingredients of criminal breach of trust were not made out as there was no entrustment of property. Consequently, the court quashed the FIR and all proceedings arising therefrom, holding that the dispute was civil and the criminal proceedings were an abuse of the process of law.
Headnote
A) Criminal Law - Quashing of FIR - Section 482 CrPC - Civil Dispute - The petitioners sought quashing of FIR alleging cheating and criminal breach of trust in a transaction for sale of flats. The court held that the dispute was purely civil in nature and criminal proceedings were an abuse of process of law. (Paras 1-10) B) Criminal Law - Cheating - Section 420 IPC - Essential Ingredients - The court observed that to constitute an offence under Section 420 IPC, there must be a fraudulent or dishonest inducement at the inception. In the present case, the transaction was a simple sale agreement and failure to perform did not attract criminal liability. (Paras 5-8) C) Criminal Law - Criminal Breach of Trust - Section 406 IPC - Essential Ingredients - The court noted that for an offence under Section 406 IPC, there must be entrustment of property and dishonest misappropriation. The payment of earnest money under a sale agreement does not amount to entrustment. (Paras 5-8)
Issue of Consideration
Whether the FIR registered against the petitioners for offences under Sections 406, 420, 504, 506 read with 34 of the Indian Penal Code, 1860 (IPC) should be quashed as the dispute is purely civil in nature.
Final Decision
The court allowed the petition and quashed FIR No.120/2015 registered at Amboli Police Station and all proceedings arising therefrom.
Law Points
- Criminal proceedings cannot be used as a tool for recovery of money
- Quashing of FIR under Section 482 CrPC
- Distinction between civil and criminal disputes
- Abuse of process of law
