Case Note & Summary
The petitioners, including Sukesh.N, B.Nageshwar Rao, N.Narashimalu, and N.Sriramachandra Murthy, filed a petition under Section 482 of the Code of Criminal Procedure, 1973 (Cr.P.C.) seeking quashing of FIR No.84/2019 registered at Netaji Nagar Police Station, Raichur, for offences under Sections 419, 420, 467, 468, 471 read with Section 34 of the Indian Penal Code, 1860 (IPC). The FIR was lodged by the second respondent, Santhosh Kumar.N @ Santhosh Nandini, alleging that the petitioners had executed a false sale deed and created forged documents in relation to a property. The High Court of Karnataka at Kalaburagi Bench, presided over by Justice Rajendra Badamikar, examined the facts and found that the dispute essentially arose from an agreement to sell immovable property. The court noted that the complainant had paid an advance amount of Rs. 5,00,000/- to the petitioners, but the sale was not completed. The petitioners contended that the complainant failed to pay the balance amount, while the complainant alleged that the petitioners executed a sale deed in favor of a third party. The court observed that the allegations did not disclose any fraudulent or dishonest intention at the inception of the transaction. The dispute was purely civil in nature, relating to breach of contract and recovery of money, for which civil remedies were available. The court held that continuing criminal proceedings would be an abuse of the process of law. Consequently, the petition was allowed, and the FIR and all proceedings arising therefrom were quashed insofar as the petitioners were concerned.
Headnote
A) Criminal Procedure Code - Quashing of FIR - Section 482 Cr.P.C. - Abuse of Process - Dispute arising out of an agreement to sell immovable property - Complainant alleged that petitioners executed a false sale deed and created forged documents - Court held that the dispute is purely civil in nature and the criminal proceedings are an abuse of process of law - Held that the FIR is liable to be quashed (Paras 2-10). B) Indian Penal Code - Cheating and Forgery - Sections 419, 420, 467, 468, 471 read with 34 IPC - Ingredients - Civil Dispute - The complainant failed to show any fraudulent or dishonest intention at the time of entering into the agreement - Court observed that the dispute relates to non-performance of contract and recovery of money, which are civil remedies - Held that the criminal proceedings cannot be sustained (Paras 5-9).
Issue of Consideration
Whether the FIR registered for offences under Sections 419, 420, 467, 468, 471 read with Section 34 of IPC should be quashed on the ground that the dispute is purely civil in nature and the criminal proceedings amount to abuse of process of court.
Final Decision
The petition is allowed. The FIR in Crime No.84/2019 registered by Netaji Nagar Police Station, Raichur, for the offences punishable under Sections 419, 420, 467, 468, 471 read with Section 34 of IPC and all proceedings arising therefrom are quashed insofar as the petitioners are concerned.
Law Points
- Criminal proceedings cannot be used as a tool for recovery of money or civil disputes
- Quashing of FIR under Section 482 Cr.P.C. when dispute is purely civil
- Ingredients of cheating and forgery not made out when there is no fraudulent or dishonest intention at inception
