DALIP KAUR & ORS. versus JAGNAR SINGH & ANR.

DALIP KAUR & ORS. versus JAGNAR SINGH & ANR.

Breach of contract simpliciter does not constitute an offence of cheating under s.420 IPC or criminal breach of trust under s.406 IPC unless fraudulent or dishonest intention exists at inception; disputes arising from such circumstances are essentially civil in nature, and the High Court must examine whether criminal elements are present before refusing to quash FIR.

Parties
Appellant: Dalip Kaur & Ors.; Respondent: Jagnar Singh & Anr.
Jurisdiction
India
Judgment Date
07 July 2009
Procedural Posture
Criminal Appeal / Appeal From Order of High Court Dismissing Petition Under S.482 Cr PC for Quashing FIR
Outcome
Appeal allowed
Legal Topics
Cheating Under IPC S.420, Criminal Breach of Trust Under IPC S.406, Quashing FIR Under S.482 Cr PC, Distinction Between Civil and Criminal Liability
Criminal Law Contract Law Cheating Under IPC S.420 Criminal Breach of Trust Under IPC S.406 Quashing FIR Under S.482 Cr PC Distinction Between Civil and Criminal Liability

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Parties

Dalip Kaur & Ors.

Appellant

Jagnar Singh & Anr.

Respondent

Procedural Posture

Criminal Appeal / Appeal From Order of High Court Dismissing Petition Under S.482 Cr PC for Quashing FIR

Legal Issues

  1. 1 Whether breach of contract of an agreement for sale constitutes an offence under Section 406 or 420 of the Indian Penal Code
  2. 2 Whether FIR alleging cheating on account of breach of contract should be quashed under s.482 CrPC

Ratio Decidendi

Breach of contract simpliciter does not constitute an offence of cheating under s.420 IPC or criminal breach of trust under s.406 IPC unless fraudulent or dishonest intention exists at inception; disputes arising from such circumstances are essentially civil in nature, and the High Court must examine whether criminal elements are present before refusing to quash FIR.

Court Disposition

Appeal allowed

Orders

  • Impugned judgment of High Court set aside
  • Matter remitted to High Court for fresh consideration