Case Note & Summary
The petitioner, Yennarkay R Rajaratnam, was accused No.2 in C.C.No.13283/2016 pending before the IX Additional Chief Metropolitan Magistrate, Bengaluru, for offences under Section 420 read with Section 34 of the Indian Penal Code. The respondent No.2, P Ravindra, had filed a complaint under Section 200 Cr.P.C. alleging that the petitioner and others had cheated him by inducing him to part with money for a business venture that did not materialize. The petitioner filed this petition under Section 482 Cr.P.C. seeking quashing of the charge sheet and entire proceedings. The High Court examined the allegations and found that the dispute was essentially civil in nature, arising from a business transaction. The court noted that the essential ingredients of cheating under Section 420 IPC, particularly fraudulent or dishonest inducement at the inception, were absent. The court held that continuing the criminal proceedings would be an abuse of the process of law. Accordingly, the petition was allowed, and the proceedings in C.C.No.13283/2016 were quashed against the petitioner.
Headnote
A) Criminal Procedure Code - Quashing of Proceedings - Section 482 Cr.P.C. - Inherent Powers - The High Court can quash criminal proceedings to prevent abuse of process of court when the dispute is purely civil in nature and no criminal offence is made out. (Para 6)
B) Indian Penal Code - Cheating - Section 420 IPC - Ingredients - For an offence under Section 420 IPC, there must be fraudulent or dishonest inducement at the inception of the transaction. Mere breach of contract or failure to pay does not constitute cheating. (Para 5)
C) Criminal Law - Abuse of Process - Civil Dispute - Criminal proceedings initiated to pressurize the opposite party in a civil dispute amount to abuse of process of law and are liable to be quashed. (Para 6)
Issue of Consideration
Whether the criminal proceedings for offences under Section 420 read with Section 34 IPC against the petitioner can be quashed under Section 482 Cr.P.C. when the dispute is essentially of a civil nature.
Final Decision
The petition is allowed. The charge sheet and entire proceedings in C.C.No.13283/2016 on the file of the IX Additional Chief Metropolitan Magistrate, Bengaluru, are quashed against the petitioner.
Law Points
- Quashing of criminal proceedings
- Section 482 Cr.P.C.
- Cheating
- Section 420 IPC
- Civil dispute
- Breach of contract
- Criminal breach of trust
- Abuse of process of law
Case Details
2023 LawText (KAR) (10) 19
Criminal Petition No.2280 of 2018
Sri Ashok Haranahalli, Senior Counsel for Sri Yeshu Mishra, Advocate for Petitioner; Sri Vinayaka V.S, HCGP for R1; Sri V Vinod Reddy, Advocate for R2
State of Karnataka and P Ravindra
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Nature of Litigation
Criminal petition under Section 482 Cr.P.C. for quashing of charge sheet and proceedings in a cheating case.
Remedy Sought
Petitioner (accused No.2) sought quashing of charge sheet and entire proceedings in C.C.No.13283/2016.
Filing Reason
Respondent No.2 filed a complaint alleging cheating under Sections 419 and 420 IPC, which the petitioner contended was a civil dispute.
Previous Decisions
The complaint was referred to police under Section 156(3) Cr.P.C., resulting in charge sheet. The petitioner was arrayed as accused No.2.
Issues
Whether the allegations in the charge sheet make out an offence under Section 420 IPC read with Section 34 IPC?
Whether the criminal proceedings amount to an abuse of process of law and are liable to be quashed under Section 482 Cr.P.C.?
Submissions/Arguments
Petitioner argued that the dispute is purely civil in nature and no criminal offence is made out.
Respondent No.2 contended that the petitioner induced him to part with money fraudulently.
Ratio Decidendi
The High Court held that the essential ingredients of cheating under Section 420 IPC, particularly fraudulent or dishonest inducement at the inception, were absent. The dispute was civil in nature, and continuing criminal proceedings would be an abuse of process of law. Hence, the proceedings were quashed under Section 482 Cr.P.C.
Judgment Excerpts
The captioned petition is filed by accused No.2 seeking quashing of charge sheet and the entire proceedings in C.C.No.13283/2016 for the offences punishable under Section 420 read with Section 34 of IPC.
The facts leading to the case are as under: The respondent No.2 filed a complaint under Section 200 of Cr.P.C. before the IX Additional Chief Metropolitan Magistrate, Bengaluru in PCR.No.2010/2013 against the petitioner herein and five others alleging commission of offences punishable under Sections 419 and 420 of IPC.
Procedural History
Respondent No.2 filed a private complaint under Section 200 Cr.P.C. in PCR.No.2010/2013. The Magistrate referred the complaint to police under Section 156(3) Cr.P.C. Police investigated and filed charge sheet in C.C.No.13283/2016. Petitioner filed Criminal Petition No.2280 of 2018 under Section 482 Cr.P.C. seeking quashing.
Acts & Sections
- Indian Penal Code, 1860 (IPC): 420, 34, 419
- Code of Criminal Procedure, 1973 (Cr.P.C.): 482, 200
