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2000 (3) TMI 1105 - SC - Indian Laws

Issues Involved:
1. Whether the allegations in the complaint constitute an offense of cheating u/s 420 IPC and its allied offenses.
2. Whether the criminal proceedings initiated against the appellants were an abuse of the process of the court.

Summary:

Issue 1: Allegations of Cheating u/s 420 IPC and Allied Offenses
The appellants sold land to the respondent (Secretary of a cooperative society) for Rs. 16,00,000, receiving Rs. 11,00,000 upfront and three cheques for the balance, which were dishonored. The respondent filed a complaint alleging offenses u/s 418, 420, 423, 469, 504, and 120B IPC, claiming the appellants conspired to cheat by providing false assurances about the land's partition status and concealing pending litigation. The Supreme Court analyzed the definition of cheating u/s 415 IPC, emphasizing the necessity of proving fraudulent or dishonest intention at the time of inducement. The Court found that the complaint did not explicitly or implicitly allege intentional deception by the appellants at the beginning of the transaction. Thus, the ingredients of the offense of cheating and allied offenses were not made out.

Issue 2: Abuse of Process of the Court
The Court referred to the principles laid down in *State of Haryana v. Bhajan Lal*, identifying categories where quashing of proceedings is justified, including cases where allegations do not constitute an offense or are inherently improbable. The Court concluded that the complaint did not disclose the essential elements of the alleged offenses, particularly the dishonest intention required for cheating. Therefore, continuing the criminal proceedings would be an abuse of the court's process.

Conclusion:
The appeals were allowed, and the judgment/order of the Patna High Court was set aside. The criminal proceedings in Criminal Case No. 22/96 pending in the Court of Chief Judicial Magistrate, Siwan, were quashed.

 

 

 

 

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