Case Note & Summary
The appeal arose from a judgment of the High Court of Karnataka regarding the termination of the first respondent's employment as a Consultant Neurosurgeon at BGS Apollo Hospital. The first respondent alleged that his services were terminated due to an ulterior motive to defame him and filed a complaint under Section 200 of the Code of Criminal Procedure, 1973, against the Appellant. The Judicial Magistrate First Class took cognizance of the complaint, but the Additional Sessions Judge later set aside this order, stating that the complaint did not disclose the necessary ingredients for the offences of defamation or cheating. The first respondent challenged this decision in the High Court, which held that there was a prima facie case for offences under Sections 405 and 420 of the Indian Penal Code. The Supreme Court, upon reviewing the case, determined that the allegations did not establish the elements of cheating or criminal breach of trust. The court emphasized that the complaint lacked evidence of deception or dishonest intention and that the issues raised were primarily civil in nature, stemming from a breach of the Consultancy Agreement. Consequently, the Supreme Court allowed the appeal, restored the order of the Additional Sessions Judge, and set aside the High Court's judgment.
Headnote
A) Criminal Law - Cheating - Ingredients of Cheating - Sections 415, 420 Indian Penal Code, 1860 - The court held that the allegations in the complaint did not establish the necessary elements of cheating as there was no evidence of deception or dishonest intention by the Appellant. The complaint primarily indicated a civil dispute arising from the termination of services rather than a criminal offence. Held that the ingredients of cheating were absent (Paras 18-19). B) Criminal Law - Criminal Breach of Trust - Ingredients of Criminal Breach of Trust - Section 405 Indian Penal Code, 1860 - The court found that the allegations did not demonstrate the essential elements of entrustment and dishonest misappropriation required to constitute criminal breach of trust. The complaint's claims were insufficient to establish a prima facie case of criminal breach of trust (Paras 23-23).
Issue of Consideration
Whether the ingredients of the offences of cheating and criminal breach of trust have been made out on the face of the complaint
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's judgment, and restored the order of the IVth Additional Sessions Judge dated 15 December 2015.
Law Points
- Ingredients of cheating
- criminal breach of trust
- defamation
- breach of contract
- employment termination



