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TMI Blog2009 (2) TMI 906X X X X Extracts X X X X X X X X Extracts X X X X ..... ffence punishable under Section 406 of the Indian Penal Code, 1860 (in short the `IPC'). They were partners of one Jagdamba Rice Mills to whom the paddy was entrusted for milling by the Punjab State Civil Supplies Corporation Ltd. (in short the `Corporation') during the year 1983-84. It was alleged that the accused failed to account for the paddy and thus misappropriated the same. Pursuant to arbitration clause between the parties an arbitrator was appointed and an award of ₹ 1,81,315.43 was rendered in favour of the Corporation. The trial Court acquitted the accused on the ground that the matter arose out of breach of contract, the same was of civil nature and a criminal case against the accused was not made out. 2. High ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o his own use the property or (b) dishonestly used or disposed of the property or willfully suffered any other person so to do in violation (i) of any direction of law prescribing mode in which such mode is to be discharged or (ii) of any legal contract made touching the discharge of trust. 6. In Rajesh Bajaj v. State NCT of Delhi 1999 CriLJ 1833 it was held as follows: 10. It may be that the facts narrated in the present complaint would as well reveal a commercial transaction or money transaction. But that is hardly a reason for holding that the offence of cheating would elude from such a transaction. In fact, many a cheatings were committed in the course of commercial and also money transactions. One of the illustrations set out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in State of Haryana v. Bhajan Lal AIR 1992 SC 81 (Underlined for emphasis) 9. These aspects were not considered by the trial Court and, therefore, the High Court should not have in a summary manner dismissed the appeal after having recorded that a criminal case may arise even when breach of contract is also there and there is no bar for prosecution under the criminal law. Having said so, the High Court came to an abrupt conclusion because two views are possible as to whether the allegation made was of a civil dispute or of a criminal nature no interference was called for. The approach is clearly erroneous. Therefore, we set aside the impugned judgment of the High Court and remit the matter to it for fresh consideration in accorda ..... X X X X Extracts X X X X X X X X Extracts X X X X
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