Bombay High Court Quashes FIR in Property Dispute Case Due to Civil Nature of Dispute. Allegations of Criminal Breach of Trust and Cheating Not Made Out as Dispute Pertained to Non-Payment of Rent Under Leave and License Agreement.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The applicants, Dr. Arun Kumar Barthakur and Basant Kumar Jain, filed an application under Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of FIR No. 254 of 2013 registered at Chaturshrungi Police Station, Pune, for offences under Sections 386, 406, 420, 504 read with Section 34 of the Indian Penal Code. The FIR was lodged by respondent no.2, Subhash Raghunath Jadhav, along with other co-owners. The dispute arose from a leave and license agreement dated 30th December 2002 executed between the previous owners and M/s. Anheena Engineering Private Limited, of which applicant no.2 was a director. The license was extended until December 2006. The complainant alleged that applicant no.2 continued to occupy the flat as a trespasser without paying rent, and despite discussions, he handed over possession on 7th July 2013 but failed to pay the outstanding rent. The applicants contended that the dispute was purely civil in nature regarding non-payment of rent and that no criminal offence was made out. The court analyzed the FIR and found that the allegations did not disclose any criminal intent or deception. The court noted that the dispute was essentially about recovery of rent and possession, which are civil matters. The court held that allowing criminal proceedings to continue would be an abuse of process of law. Consequently, the court quashed the FIR and all proceedings arising therefrom.

Headnote

A) Criminal Procedure Code - Quashing of FIR - Section 482 CrPC - Inherent Powers - Dispute pertained to non-payment of rent and possession of flat under leave and license agreement - Court held that the allegations in FIR did not disclose any criminal offence and the dispute was purely civil in nature - Held that continuation of criminal proceedings would be an abuse of process of law (Paras 1-15).

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Issue of Consideration

Whether the FIR and criminal proceedings against the applicants should be quashed under Section 482 CrPC as the dispute is purely civil in nature.

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Final Decision

The court allowed the application and quashed FIR No.254 of 2013 registered at Chaturshrungi Police Station, Pune, and all proceedings arising therefrom.

Law Points

  • Civil dispute cannot be converted into criminal proceedings
  • Section 482 CrPC inherent powers
  • Quashing of FIR when allegations are civil in nature
  • Abuse of process of law
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Case Details

2017 LawText (BOM) (06) 47

Criminal Application No.16 of 2014

2017-06-05

S.C. Dharmadhikari, Prakash D. Naik

2017:BHC-AS:13655-DB

Dr. Arun Kumar Barthakur (applicant no.1 in person), Mr. Tejesh Dande (for respondent nos.2 to 5), Mr. R.F. Shaikh (APP for State)

Dr. Arun Kumar Barthakur and Basant Kumar Jain

The State of Maharashtra, Subhash Raghunath Jadhav, Mahesh Sadanand Shetty, Virdhaval Vijay Sable, Mahendra Sampatrao Gadge Patil

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Nature of Litigation

Criminal application under Section 482 CrPC for quashing of FIR

Remedy Sought

Quashing of FIR No.254 of 2013 and all proceedings arising therefrom

Filing Reason

Allegations in FIR did not disclose criminal offence; dispute was civil in nature

Issues

Whether the FIR discloses any criminal offence? Whether the dispute is purely civil in nature warranting quashing of criminal proceedings?

Submissions/Arguments

Applicants argued that the dispute is civil in nature regarding non-payment of rent and possession, and no criminal offence is made out. Respondents argued that the FIR discloses offences of criminal breach of trust, cheating, extortion, and intimidation.

Ratio Decidendi

When the allegations in the FIR do not disclose any criminal offence and the dispute is purely civil in nature, continuation of criminal proceedings would be an abuse of process of law, and the FIR is liable to be quashed under Section 482 CrPC.

Judgment Excerpts

The Applicants have invoked inherent powers of this Court under Section 482 of Code of Criminal Procedure, 1973 challenging the first information report against them... The impugned FIR is registered for offences punishable under Sections 386, 406, 420, 504 read with Section 34 of Indian Penal Code.

Procedural History

FIR No.254 of 2013 was registered on 19th July 2013 at Chaturshrungi Police Station, Pune. The applicants filed Criminal Application No.16 of 2014 under Section 482 CrPC seeking quashing of the FIR. The court reserved judgment on 26th April 2017 and pronounced it on 5th June 2017.

Acts & Sections

  • Code of Criminal Procedure, 1973: 482
  • Indian Penal Code, 1860: 386, 406, 420, 504, 34
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High Court Bombay High Court Quashes FIR in Property Dispute Case Due to Civil Nature of Dispute. Allegations of Criminal Breach of Trust and Cheating Not Made Out as Dispute Pertained to Non-Payment of Rent Under Leave and License Agreement.