2006 (7) TMI 735 - HC - Indian Laws

Summary

Issues:
1. Allegation of criminal breach of trust and cheating against the accused in a plot allotment scheme.
2. Dispute over failure to pay plot installments and subsequent cancellation and reallocation of plot.
3. Consideration of civil dispute versus criminal prosecution in the case.

Analysis:
1. The Criminal Petition sought to quash proceedings against the accused in an FIR for offenses under Sections 406 and 420 of the Indian Penal Code (IPC). The accused, involved in a plot scheme, faced allegations of breach of trust and cheating. The complainant claimed the accused misrepresented plot allotment terms, leading to a cancellation and reallocation dispute.
2. The complainant alleged non-fulfillment of promises by the accused regarding a plot loan, resulting in installment payment defaults. The accused canceled the plot allotment, offered alternatives, and eventually repaid the complainant under protest. The accused argued the dispute was civil in nature due to installment arrears, seeking quashing of criminal proceedings.
3. Legal arguments referenced Supreme Court judgments emphasizing fraudulent intent for criminal breach of trust and cheating. The defense highlighted the civil-criminal coexistence and the need for fraudulent intention for criminal liability. The court determined the lack of prima facie evidence for criminal charges, favoring civil resolution over criminal prosecution, leading to the quashing of the FIR.

In conclusion, the judgment balanced the civil-criminal aspects of the case, emphasizing the absence of fraudulent intent for criminal charges. The court favored civil resolution, quashing the FIR against the accused in the plot allotment scheme dispute. The detailed analysis considered legal precedents on breach of trust and cheating, highlighting the necessity of fraudulent intent for criminal liability, ultimately leading to the decision to dismiss the criminal proceedings.