Case Note & Summary
The petitioners, accused in FIR No.154/2021, filed a writ petition under Articles 226 and 227 of the Constitution read with Section 482 CrPC seeking to quash the FIR registered at Vijaynagar Police Station, Mysuru, for offences under Sections 420, 448, 506, and 34 of the IPC. The dispute originated from a partnership deed executed on 26-02-2020 between the first petitioner and the second respondent (complainant) in Hyderabad for construction business under the name 'N.C. Infra and Constructions'. Subsequently, on 18-05-2020, the first petitioner, third petitioner, and the complainant entered into an agreement for work execution where the complainant was engaged as an engineer with a monthly salary of Rs. 2 lakhs for constructing a commercial complex. Differences arose when the complainant demanded payment and a share in profits, alleging oral assurance of 40% from the first and third petitioners. The second petitioner, a senior citizen and father of the first petitioner, filed a complaint on 26-05-2021 against the complainant for trespass and threats, which resulted in a non-cognizable report. The complainant then sent a legal notice claiming amounts and, upon dissatisfaction, lodged the FIR on 05-10-2021 in Mysore, alleging cheating, trespass, and criminal intimidation. The petitioners contended that the dispute was purely civil, rooted in breach of contract, and that criminal law was being misused for recovery. The second respondent, appearing in person, argued that he was cheated and threatened, thus the FIR was justified. The State supported investigation citing cognizable offences. The Court, after examining the partnership deed and work agreement, observed that the entire transaction was contractual and civil in nature. It held that allowing criminal proceedings in such a dispute would amount to abuse of process. Consequently, the Court allowed the writ petition and quashed the FIR No.154/2021, protecting the petitioners from the misuse of criminal law.
Headnote
A) Criminal Law - Quashing of FIR - Abuse of Process - Indian Penal Code, 1860 Sections 420, 448, 506, 34; Code of Criminal Procedure, 1973 Section 482 - Dispute arose from a partnership deed and work execution agreement; complainant alleged non-payment and threats but the Court found the matter purely civil in nature. Held, FIR quashed as criminal machinery cannot be used to settle civil disputes and the averments did not disclose necessary ingredients for the alleged offences (Paras 5-10).
Issue of Consideration
Whether the FIR registered for offences under Sections 420, 448, 506, 34 IPC against the petitioners should be quashed as the dispute is essentially civil in nature arising out of a partnership deed and agreement for work execution
Final Decision
The writ petition was allowed. The FIR in Crime No.154/2021 dated 05.10.2021 registered at Vijaynagar Police Station, Mysuru for offences under Sections 420, 448, 506, 34 IPC was quashed.
Law Points
- Criminal law not to be used for recovery of money in civil disputes
- Breach of contract does not automatically attract offence of cheating under Section 420 IPC
- Mere breach of contract without fraudulent or dishonest intention at the inception is not cheating
- FIR can be quashed under Section 482 CrPC if the dispute is essentially civil and criminal proceedings are an abuse of process
