Entire case summary
The criminal appeal is filed by the appellant Sandeep Shukla challenging the order passed by the High Court.
The factual matrix involves a criminal complaint initiated by the second respondent alleging that he was duped of Rs. 10 lakhs across two installments on the pretext of a flat sale that never materialized and where the money was not refunded, followed by allegations that the appellant summoned the second respondent to demand a refund.
The core legal arguments involve contentions regarding the nature of the dispute, wherein the appellant points out that the allegations stem from a purely civil transaction regarding an agreement to sell, whereas the respondents argue the existence of criminal culpability and cheating under the penal code.
The summary of the analysis of the judgment establishes that a purely civil breach of contract or commercial dispute cannot be ingeniously converted into a criminal prosecution under the guise of an offence unless the clear ingredients of criminal intent or cheating from the very inception are prima facie established.
Important paragraph
7. Another aspect noticed by the High Court was that there was a money transaction found on investigation. If there is a money transaction and the appellant has a demand for its return, the remedy is not to initiate criminal proceedings but to file a civil suit for recovery. As we noticed, the second installment is said to have been made on 27.01.2020 and the first complaint raised before the Superintendent of Police was on 13.03.2023, which is clearly after limitation had expired to file a suit for recovery of money. Time and again this Court has noticed that criminal proceedings are not a measure of recovery of money and civil disputes cannot be converted into criminal prosecution as an arm-twisting method to coerce the accused arrayed to satisfy the demand of money raised.
8. We find absolutely no reason to sustain the impugned order and set aside the same. The appeal stands allowed, restoring the order refusing cognizance and dismissing the complaint.
9. Pending application(s), if any, shall stand disposed of.
Party: Sandeep Shukla versus State of Uttar Pradesh and Another - Criminal Appeal No. 3738 of 2026 (arising out of SLP (Crl.) No. 4695 of 2026) - Neutral Citation: 2026 INSC 817 - 5, 2026, decided by Hon'ble Mr. Justice J.B. Pardiwala and Hon'ble Mr. Justice K. Vinod Chandran.
