Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Code of Criminal Procedure 1973: s. 482 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 Referred Case 8 Referred Case 9 Referred Case 10 Referred Case 11 Referred Case 12 Referred Case 13 Referred Case 14 Referred Case 15 Referred Case 16 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Code of Criminal Procedure, 1973: s. 482 – Quashing of complaint – Appellant No. 1 is the Managing Director of the Public Limited Company and Appellant Nos.2 and 3 are the Directors of the said Company –The company itself has been arrayed as proforma Respondent No.3 – In January 2008, Respondent No. 2, an authorized representative of SMC Global Securities Ltd, Delhi desired to make an investment on its behalf with the appellants –It was mutually decided between the parties that Respondent No. 2 will invest an amount of Rs. 2.5 crore with the company in lieu of which they will be issued 2,50,000 equity shares of the company (Respondent No. 3) – Subsequently, Respondent No. 2 filed share application form along with the cheque of Rs. 2.5 crore – An allotment letter was issued in favour of Respondent No. 2 whereby 2,50,000 shares were issued in lieu of the investment made by him – The proforma Respondent no.3 and Respondent No.2 arrived at an understanding, regarding the investment made by Respondent No. 2. – Having failed to bring the IPO as per memorandum of understanding, Respondent No.2 issued a legal notice to the Appellants, who duly replied to the legal notice denying all the allegations contained in the legal notice – Respondent No. 2 filed a police complaint in New Delhi – Respondent No. 2 filed a second complaint under ss.406, 409, 420, 468,120B and 34 IPC on the basis of the same cause of action at Kolkata and the same was converted into FIR under ss.406, 420, 120B IPC –High Court of Calcutta by impugned judgment dismissed the quashing as well as the revision petition filed by the Appellants – Hence instant appeal – Held: There can be no doubt that a mere breach of contract is not in itself a criminal offence and gives rise to the civil liability of damages – While breach of contract cannot give rise to criminal prosecution, for cheating, fraudulent or dishonest intention is the basis of the offence of cheating – In the case at hand, complaint filed by the Respondent No. 2 does not disclose dishonest or fraudulent intention of the appellants – In order to attract the ingredients of ss. 406 and 420 IPC, it is imperative on the part of the complainant to prima facie establish that there was an intention on part of the petitioner and/or others to cheat and/or to defraud the complainant right from the inception – It has to be prima facie established that due to such alleged act of cheating, the complainant (Respondent No. 2) had suffered a wrongful loss and the same had resulted in wrongful gain for the accused (appellant) – In absence of these elements, no proceeding is permissible in the eyes of law with regard to the commission of the offence punishable u/s 420 IPC – The impugned FIR and proceedings in pursuance of charge sheet against the appellants for the offences under ss. 406, 420,120B IPC quashed – Penal Code, 1860 – ss. 406, 420,120B. |
Judge | Hon'ble Mr. Justice Krishna Murari |
Neutral Citation | 2022 INSC 326 |
Petitioner | Vijay Kumar Ghai & Ors. |
Respondent | The State Of West Bengal & Ors. |
SCR | [2022] 1 S.C.R. 884 |
Judgement Date | 2022-03-22 |
Case Number | 463 |
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