Mere breach of contract cannot give rise to criminal prosecution for cheating

Section 482 CRPC 

Sections 406, 419, 420 read with Section 34 IPC 

Breach of contract 

Quashing of FIR and proceedings 

Mere breach of contract cannot give rise to criminal prosecution for cheating unless fraudulent or dishonest intention is shown right at beginning of transaction. 

Existence of dishonest or fraudulent intention not made out.  

Court expressed its disapproval for imparting criminal color to civil dispute, made merely to take advantage of relatively quick relief granted in criminal case in contrast to civil dispute. 

Such exercise is nothing but abuse of process of law which must be discouraged in its entirety. 

Therefore, FIR liable to be quashed. 

[Paras 38, 40 and 47]

MITESH KUMAR J SHA vs STATE OF KARNATAKA 

CRL-A 1285/21 26/10/21 

[ ABDUL NAZEER JJ ]

[ SUPREME COURT ]