M N G BHARATEESH REDDY versus RAMESH RANGANATHAN AND ANOTHER

M N G BHARATEESH REDDY versus RAMESH RANGANATHAN AND ANOTHER

On the face of the complaint the ingredients of cheating (Sections 415 and 420 IPC) and criminal breach of trust (Section 405 IPC) are not made out because the complaint lacks allegations of deception or dishonest intention, and there is no prima facie case of entrustment of property; the allegations at most disclose a civil dispute/breach of contract, therefore the High Court erred in holding cognizance was correctly taken and the Additional Sessions Judge's order setting aside cognizance is to be restored.

Parties
Appellant: M N G Bharateesh Reddy; Respondent: Ramesh Ranganathan; Respondent: BGS Apollo Hospital, Mysore
Jurisdiction
India
Judgment Date
18 August 2022
Procedural Posture
Criminal Appeal / Appeal From High Court Judgment (single Judge)
Outcome
Appeal allowed
Legal Topics
Cheating Under Section 415 IPC, Criminal Breach of Trust Under Section 405 IPC, Defamation, Cognizance by Magistrate, Distinction Between Civil Breach of Contract and Criminal Offence
Criminal Law Contract Law Cheating Under Section 415 IPC Criminal Breach of Trust Under Section 405 IPC Defamation Cognizance by Magistrate Distinction Between Civil Breach of Contract and Criminal Offence

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Parties

M N G Bharateesh Reddy

Appellant

Ramesh Ranganathan

Respondent

BGS Apollo Hospital, Mysore

Respondent

Procedural Posture

Criminal Appeal / Appeal From High Court Judgment (single Judge)

Legal Issues

  1. 1 Whether the ingredients of offences under Sections 415 and 420 IPC (cheating) are made out on the face of the complaint
  2. 2 Whether the ingredients of offence under Section 405 IPC (criminal breach of trust) are made out on the face of the complaint
  3. 3 Whether the High Court erred in holding that cognizance was correctly taken of offences punishable under Sections 405, 415 and 420 IPC

Ratio Decidendi

On the face of the complaint the ingredients of cheating (Sections 415 and 420 IPC) and criminal breach of trust (Section 405 IPC) are not made out because the complaint lacks allegations of deception or dishonest intention, and there is no prima facie case of entrustment of property; the allegations at most disclose a civil dispute/breach of contract, therefore the High Court erred in holding cognizance was correctly taken and the Additional Sessions Judge's order setting aside cognizance is to be restored.

Court Disposition

Appeal allowed

Orders

  • Impugned judgment and order of the High Court dated 12 July 2019 set aside
  • Order of the IVth Additional Sessions Judge dated 16 December 2015 in Criminal Revision Petition No. 94 of 2015 restored