Case Note & Summary
The applicant, Sumit Sunil Chavan, filed an application under Section 482 of the Code of Criminal Procedure, 1973 seeking quashing of FIR No. I-36/2016 registered at Kapurbawdi Police Station, Thane for offences under Sections 420, 406, 409, 467, 468, 471, 120B of the Indian Penal Code, 1860 and Section 138 of the Negotiable Instruments Act, 1881. The FIR was lodged by respondent No. 2, Babasaheb Sahebrao Hardas, alleging that the applicant had borrowed money and issued a cheque which was dishonoured. The applicant contended that the dispute was purely civil in nature and that there was no dishonest intention at the time of borrowing. The court examined the allegations and found that the complainant had not made any specific averment regarding fraudulent or dishonest inducement at the inception. The court held that the essential ingredients of cheating under Section 420 IPC were not made out. Further, the court noted that the remedy for dishonour of cheque lies under Section 138 of the Negotiable Instruments Act, which is a civil liability. The court observed that continuing the criminal proceedings would be an abuse of the process of law. Accordingly, the court allowed the application and quashed the FIR and all consequential proceedings.
Headnote
A) Criminal Procedure Code, 1973 - Section 482 - Quashing of FIR - Inherent powers - FIR quashed where allegations do not disclose any criminal offence and continuation of proceedings would be an abuse of process of law - Held that the court can exercise inherent powers to prevent abuse of process (Paras 10-15). B) Indian Penal Code, 1860 - Section 420 - Cheating - Dishonest intention - Mere dishonour of cheque does not constitute cheating unless there is fraudulent or dishonest inducement at the inception - Held that the complainant failed to show any dishonest intention at the time of borrowing (Paras 16-20). C) Negotiable Instruments Act, 1881 - Section 138 - Dishonour of cheque - Civil liability - Dispute primarily of civil nature where cheque was issued towards repayment of loan - Held that criminal proceedings cannot be used as a tool for recovery of debt (Paras 21-25).
Issue of Consideration
Whether the FIR for offences under Sections 420, 406, 409, 467, 468, 471, 120B IPC and Section 138 of the Negotiable Instruments Act, 1881 should be quashed for lack of prima facie case and malicious prosecution.
Final Decision
Application allowed. FIR No. I-36/2016 registered at Kapurbawdi Police Station, Thane and all consequential proceedings quashed.
Law Points
- Quashing of FIR
- Section 482 CrPC
- Dishonour of cheque
- Section 420 IPC
- Lack of dishonest intention
- Abuse of process of law
