Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Criminal Breach of Trust |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Indian Penal Code (45 of 1860) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Penal Code, 1860:s.406 – Criminal Breach of Trust – Development agreementbetween appellant No. 1 and respondent No. 2 (Developer) –Security amount of Rs. One crore was deposited by developer withappellant No. 1 – As per the agreement the amount was liable to berefunded when the developer would handover possession of theareas of the owner’s share to the owner – Agreement could not befulfilled in view of new building regulations – Appellant No. 1conveyed to the developer that he did not wish to develop theproperty – FIR lodged by developer against appellant No. 1 allegingcriminal breach of trust for having not refunded security amountand for having transferred the subject property in the name of hiswife i.e. appellant No. 2 – Petition by appellants u/s.482 Cr.P.C. forquashing the FIR – High Court dismissed the petition as pre-matureand directed the investigation to proceed – Appeal to Supreme Court– During pendency of appeal, on completion of investigation chargesheetfiled – Plea of appellants also for quashing the charge-sheet– Held: The essence of offence of Criminal Breach of Trust lies inthe use of the property entrusted to a person, by that person, inviolation of any direction of law or any legal contract which he hasmade during the discharge of such trust – Payment of Rs. one croreby the developer was a security amount which was required to berefunded when developer would hand-over the possession of thearea of the owner’s share to the owner – It is not entrustment ofproperty which was dishonestly converted by appellant No. 1 to hisown use or was disposed of in violation of any direction of law orcontract – Developer had also not made any attempt for recoveryof the money – The dispute has the contours of a dispute of civilnature and does not constitute a criminal offence – Transfer of property by appellant No. 1 in the name of his wife also did notamount to commission of offence of Criminal Beach of Trust –Therefore, the prosecution is mala fide, untenable and solely intendedto harass the appellants – FIR and charge-sheet are liable to bequashed – High Court erred in dismissing the petition under s. 482Cr.P.C.Code of Criminal Procedure, 1973:s.482 – Petition under – For quashing of FIR –Maintainability of, when in the meantime charge-sheet is filed –Held: The inherent power u/s. 482 is conferred to prevent abuse ofprocess of a court – The provision does not restrict the exercise ofits inherent power to prevent abuse of process of the court only tothe stage of FIR. |
Judge | Honble Mr. Justice Sharad Arvind Bobde |
Neutral Citation | 2018 INSC 1060 |
Petitioner | Anand Kumar Mohatta And Anr. |
Respondent | State (govt. Of Nct Of Delhi) Department Of Home And Anr. |
SCR | [2018] 13 S.C.R. 1028 |
Judgement Date | 2018-11-15 |
Case Number | 1395 |
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