2018 (12) TMI 2016 - SC - Indian Laws

Seeking quashing of proceedings - civil dispute of criminal dispute - sale of property by a person without title - seeking quashing of proceedings arising out of the F.I.R. on the ground that on a plain reading of the FIR the complainant had failed to make out any criminal intent on the part of the Accused - HELD THAT - The High Court was persuaded to quash the criminal proceedings purely on the basis that the F.I.R. indicated that the vendor had refused to execute the sale deed. On this basis the High Court held that there is no element of cheating and on reading of the F.I.R. the complainant had failed to make out any criminal intent on the part of the Accused. In arriving at this conclusion the High Court as would appear from the narration of facts earlier has lost sight of crucial aspects which have emerged during the course of the investigation. The case of the complainant it must be noted is that though the Accused did not have title to the property she had dealt with the property and it was on that basis that the complainant was induced to part with valuable consideration. Whether these allegations are true or otherwise is a matter of trial - The High Court was not justified in taking recourse to its power Under Section 482 Code of Criminal Procedure to quash the proceedings. Conclusion - The High Court is not justified in exercising its jurisdiction Under Section 482 Code of Criminal Procedure at this stage particularly when after due investigation the chargesheet has been filed and charges have been framed. The impugned order is set aside - appeal allowed.

Summary

1. ISSUES PRESENTED and CONSIDERED

The core legal questions considered by the Court in this matter were:

(a) Whether the High Court was justified in quashing the criminal proceedings at the stage after investigation, chargesheet filing, and framing of charges, on the ground that the dispute was purely civil in nature and lacked criminal intent.

(b) Whether the allegations in the FIR, particularly concerning the sale of property by a person without title and inducing the complainant to part with valuable consideration, disclose a prima facie case of criminal offences under Sections 406 (criminal breach of trust), 420 (cheating), 467, 468, 471 (forgery related offences), and 506 (criminal intimidation) of the Indian Penal Code, 1860.

(c) The scope and limits of the High Court's power under Section 482 of the Code of Criminal Procedure to quash criminal proceedings at an advanced stage of investigation and trial.

2. ISSUE-WISE DETAILED ANALYSIS

Issue (a): Justifiability of Quashing Criminal Proceedings Post Chargesheet and Charge Framing

Relevant legal framework and precedents: Section 482 CrPC confers inherent powers on the High Court to prevent abuse of the process of law or to secure the ends of justice. However, the exercise of such power is circumscribed, especially once a chargesheet has been filed and charges framed, as the matter then proceeds to trial where evidence is to be tested.

Precedents establish that quashing is generally inappropriate at such a stage unless the complaint is palpably frivolous, vexatious, or the allegations do not constitute an offence in any view of the matter.

Court's interpretation and reasoning: The Court observed that the High Court's quashing of proceedings purely on the basis that the FIR indicated refusal to execute the sale deed and that the dispute was civil in nature was premature and misplaced. The High Court failed to consider that the investigation had revealed material suggesting criminal conduct, including the fact that the accused did not hold title but induced the complainant to pay consideration.

Application of law to facts: The Court emphasized that whether the accused had criminal intent or not was a matter for trial. The mere fact that the vendor refused to execute the sale deed does not negate the possibility of cheating or criminal breach of trust. The filing of the chargesheet and framing of charges indicated that the investigation found prima facie evidence warranting trial.

Treatment of competing arguments: The High Court had relied on the Economic Crime Cell's report and the absence of title in the accused to hold the dispute as civil. The appellant argued that this was insufficient to quash the proceedings, especially after charges were framed. The Court sided with the appellant, underscoring that investigation findings must be tested in trial and not prematurely dismissed.

Conclusions: The High Court was not justified in quashing the proceedings under Section 482 CrPC at this stage. The matter must proceed to trial for a full adjudication on merits.

Issue (b): Prima Facie Criminality in Sale of Property Without Title and Inducement to Part with Consideration

Relevant legal framework and precedents: Sections 406 and 420 IPC deal with criminal breach of trust and cheating respectively. Cheating involves deceiving a person to deliver property or valuable security. Criminal breach of trust involves dishonest misappropriation or conversion of property entrusted to a person.

Court's interpretation and reasoning: The Court noted that the complainant alleged that the accused, despite lacking title, entered into an agreement to sell the property and accepted Rs. 10 lakhs as consideration. The FIR and investigation revealed that possession was not transferred and the accused did not have ownership rights, which could amount to cheating or criminal breach of trust if proven.

Key evidence and findings: The investigation recorded statements including that of the actual owner's wife, indicating that the accused had no title. The acceptance of consideration without title and transfer of possession raised suspicion of criminal intent.

Application of law to facts: The Court held that these allegations, if established, could constitute offences under the Penal Code. The question of criminal intent and deception is a matter for trial and cannot be decided on the basis of the FIR alone.

Treatment of competing arguments: The accused argued that the dispute was civil and no criminal offence was made out. The Court found that the accused's lack of title and acceptance of consideration prima facie raised a triable issue of criminality.

Conclusions: The allegations disclose a prima facie case warranting trial. The matter cannot be dismissed at the threshold as purely civil.

Issue (c): Scope of Section 482 CrPC Powers to Quash Proceedings

Relevant legal framework and precedents: The inherent powers under Section 482 CrPC are to be exercised sparingly and only to prevent abuse of process or to secure ends of justice. Quashing is generally not warranted after investigation and charge framing unless no offence is made out or the complaint is manifestly baseless.

Court's interpretation and reasoning: The Court reiterated that the High Court's power under Section 482 CrPC does not extend to deciding disputed questions of fact or to substitute the trial court's role at an advanced stage. The High Court's quashing on the ground of absence of criminal intent was premature and inappropriate.

Application of law to facts: Since a chargesheet had been filed and charges framed, the Court held that the matter must proceed to trial. The High Court's intervention was unwarranted at this stage.

Treatment of competing arguments: The appellant contended that the High Court's quashing was an abuse of jurisdiction. The Court agreed, emphasizing the limited scope of inherent powers at this procedural juncture.

Conclusions: The High Court's exercise of power under Section 482 CrPC to quash the proceedings was unjustified and set aside.

3. SIGNIFICANT HOLDINGS

"The High Court was not justified in taking recourse to its power Under Section 482 Code of Criminal Procedure to quash the proceedings."

"Whether these allegations are true or otherwise is a matter of trial."

"The mere fact that the vendor had refused to execute the sale deed does not negate the possibility of cheating and criminal intent."

"The High Court, in our view, was not justified in exercising its jurisdiction Under Section 482 Code of Criminal Procedure at this stage particularly when after due investigation, the chargesheet has been filed and charges have been framed."

Core principles established include the limited scope of quashing powers under Section 482 CrPC after investigation and charge framing, the necessity to allow trial courts to adjudicate disputed factual issues, and recognition that allegations of sale of property without title coupled with acceptance of consideration can prima facie constitute criminal offences such as cheating and criminal breach of trust.

Final determinations were that the impugned order quashing the FIR and criminal proceedings was set aside, the appeal allowed, and the matter remanded for trial without expressing any opinion on the merits of the accusations.