We have heard learned counsel for the parties, including counsel for the complainant/informant, who has filed an application seeking impleadment, which is allowed impleading him as respondent no. 2 to the present appeal.
Civil claims into criminal prosecution discouraged
Prima facie, in our opinion, mere breach of contract does not amount to an offence under Section 420 or Section 406 of the Indian Penal Code, 1860 [For short, “IPC”], unless fraudulent or dishonest intention is shown right at the beginning of the transaction [Sarabjit Kaur v. State of Punjab and Another, (2023) 5 SCC 360]. This Court has time and again cautioned about converting purely civil disputes into criminal cases [Indian Oil Corpn. v. NEPC India Ltd. and Others, (2006) 6 SCC 736; Vijay Kumar Ghai and Others v. State of West Bengal and Others, (2022) 7 SCC 124] Any effort to settle civil disputes and claims, which do not involve any criminal offence, by applying pressure through criminal prosecution should be deprecated and discouraged [Indian Oil Corpn. v. NEPC India Ltd. and Others, (2006) 6 SCC 736, para 13].
Anticipatory bail granted
In view of the aforesaid position, we feel that the appellants – Jay Shri and Hitesh Kela have made out their case for grant of anticipatory bail. Accordingly, it is directed that in the event of the appellants – Jay Shri and Hitesh Kela being arrested in connection with First Information Report (FIR) no. 0220/2022 dated 26.08.2022 registered with Police Station – Osiyan, District– Jodhpur Rural, Rajasthan for the offence(s) punishable under Sections 420 and 120B of the IPC, they shall be released on bail by the arresting/investigating officer or the trial court on terms and conditions to be fixed by the trial court.
Direction to comply section 438(2) Cr.P.C
In addition, the appellants – Jay Shri and Hitesh Kela shall comply with the conditions mentioned in Section 438(2) of the Code of Criminal Procedure, 1973
Parties
JAY SHRI & ANR. STATE OF RAJASTHAN – CRIMINAL APPEAL NO. OF 2024 (arising out of SLP(Crl.) No. 14423 OF 2023) – 2024 INSC 48
https://main.sci.gov.in/supremecourt/2023/45821/45821_2023_2_2_49620_Judgement_19-Jan-2024.pdf
Jay shri & anr vs. State of Rajasthan
Further study
Supreme Court on cheating & breach of contract
Cheating – Difference between breach of contract & cheating explained
