1973 (9) TMI 113 - SC - Indian Laws

Summary

Issues:
- Quashing of criminal proceedings based on breach of contract under Section 420 IPC.

Analysis:
The appellant filed a complaint against two respondents alleging that they induced him to invest in a transport business but failed to fulfill their promises. The Sub divisional Magistrate took cognizance of the offence under Section 420 IPC. The respondents approached the High Court under Section 561A CrPC, arguing that the matter was contractual in nature and not criminal. The High Court agreed, stating that a mere breach of contract does not warrant criminal prosecution and advised the appellant to seek remedies in civil court. Consequently, the High Court quashed the criminal proceedings against the respondents.

Upon appeal to the Supreme Court, it was argued that the complaint did not disclose any offence under Section 420 IPC. The Court assumed the allegations in the complaint to be true but found no evidence of dishonest or fraudulent intention by the respondents at the time of receiving the money from the appellant. The Court noted that there was no deception or false representation by the respondents to induce the payment. While the respondents' failure to fulfill their commitments might lead to civil liability, it did not amount to criminal liability for cheating under Section 420 IPC. Therefore, the Supreme Court found no merit in the appeal and dismissed it.