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> Latest> Supreme Court> S.C ON Cheating and breach of contract

S.C ON Cheating and breach of contract

Learn why a breach of contract may not lead to criminal prosecution for cheating in this case involving Sections 420, 120-B, and 506 of the Indian Penal Code, 1860. Sarabjit Kaur vs. The State of Punjab & Anr - CRIMINAL APPEAL NO. 581 OF 2023 - 01. 03. 2023.
Ramprakash Rajagopal March 3, 2023 3 Min Read
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1. The Appellant having failed before the High Court has filed the present appeal. A prayer was made for quashing of F.I.R. No.430 dated 16.10.2017 under Sections 420, 120- B and 506 of the Indian Penal Code, 1860. The petition filed before the High Court seeking quashing thereof was dismissed.

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13. A breach of contract does not give rise to criminal prosecution for cheating unless fraudulent or dishonest intention is shown right at the beginning of the transaction. Merely on the allegation of failure to keep up promise will not be enough to initiate criminal proceedings. From the facts available on record, it is evident that the respondent No.2 had improved his case ever since the first complaint was filed in which there were no allegations against the appellant rather it was only against the property dealers which was in subsequent complaints that the name of the appellant was mentioned. On the first complaint, the only request was for return of the amount paid by the respondent No.2. When the offence was made out on the basis of the first complaint, the second complaint was filed with improved version making allegations against the appellant as well which was not there in the earlier complaint. The entire idea seems to be to convert a civil dispute into criminal and put pressure on the appellant for return of the amount allegedly paid. The criminal Courts are not meant to be used for settling scores or pressurise parties to settle civil disputes. Wherever ingredients of criminal offences are made out, criminal courts have to take cognizance. The complaint in question on the basis of which F.I.R. was registered was filed nearly three years after the last date fixed for registration of the sale deed. Allowing the proceedings to continue would be an abuse of process of the Court.

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Sarabjit Kaur vs. The State of Punjab & Anr – CRIMINAL APPEAL NO. 581 OF 2023 – 01.03.2023.

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Further study
  • Anticipatory bail: Civil claims being settled by pressurising through criminal prosecution discouraged
  • CHEATING – DIFFERENCE BETWEEN BREACH OF CONTRACT & CHEATING – EXPLAINED
  • Quash: Cheating: In order to constitute an offence of cheating, the intention to cheat must be available from the inception
  • CHEATING – BREACH OF CONTRACT IS NOT THE ONLY REMEDY FOR CONTRACT ALLEGATIONS. SECTION 420 IPC ALSO ATTRACTED.

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Further Study

Summoning order: Magistrate failed to see the criminal colour of a commercial civil dispute

Subject Study On Cheating And Criminal Breach Of Trust

Anticipatory bail: Civil claims being settled by pressurising through criminal prosecution discouraged

Section 420 IPC: The contention that since charge sheet has been filed the present appeal is to be dismissed was rejected

Cheating: Difference between breach of contract & cheating – Explained

TAGGED:cheating and breachcheating and mere breach of contractfurther study breach of contractfurther study cheating
Previous Article Dismissal of petition under section 319 Cr.P.C
Next Article Juvenile: Whether after the trial is over, if accused found to be juvenile the court would set aside the sentence or shall sent to juvenile justice board?
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ஓர்ந்துகண் ணோடாது இறைபுரிந்து யார்மாட்டும் தேர்ந்துசெய் வஃதே முறை [541].

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