Jay Shri vs The State Of Rajasthan
- SCC(2024) 13 SCC 614
- Neutral2024 INSC 48
Ratio decidendi
The rule this decision rests on
A bare breach of contract, standing alone, does not constitute an offence under Section 420 or Section 406 of the Indian Penal Code, 1860; fraudulent or dishonest intention must be shown at the inception of the transaction. Criminal prosecution should not be used as a mechanism to resolve civil disputes and contractual claims that do not involve any criminal offence, and attempts to apply pressure through such prosecution should be deprecated and discouraged.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
2024 INSC 48 IN THE SUPREME COURT OF INDIA
CRIMINAL APPELLATE JURISDICTION
CRIMINAL APPEAL NO. OF 2024 (arising out of SLP(Crl.) No. 14423 OF 2023)
JAY SHRI & ANR. APPELLANT(S)
VERSUS
STATE OF RAJASTHAN RESPONDENT(S)
O R D E R
Leave granted.
With the consent of the learned counsel for the parties, we
have taken up the appeal for hearing. Right to file reply is
waived.
We have heard learned counsel for the parties, including
counsel for the complainant/informant, who has filed an application
seeking impleadment, which is allowed impleading him as respondent
no. 2 to the present appeal.
Prima facie, in our opinion, mere breach of contract does not
amount to an offence under Section 420 or Section 406 of the Indian
Penal Code, 18601, unless fraudulent or dishonest intention is
shown right at the beginning of the transaction.2 This Court has Signature Not Verified
time and again cautioned about converting purely civil disputes Digitally signed by Deepak Guglani Date: 2024.01.19 18:14:08 IST Reason:
1 For short, “IPC”.
2 Sarabjit Kaur v. State of Punjab and Another, (2023) 5 SCC 360.
Crl.A @ SLP(Crl.) No. 14423/2023 1 Non-Reportable
into criminal cases.3 Any effort to settle civil disputes and
claims, which do not involve any criminal offence, by applying
pressure through criminal prosecution should be deprecated and
discouraged.4
In view of the aforesaid position, we feel that the
appellants – Jay Shri and Hitesh Kela have made out their case for
grant of anticipatory bail. Accordingly, it is directed that in the
event of the appellants – Jay Shri and Hitesh Kela being arrested
in connection with First Information Report (FIR) no. 0220/2022
dated 26.08.2022 registered with Police Station – Osiyan, District
– Jodhpur Rural, Rajasthan for the offence(s) punishable under
Sections 420 and 120B of the IPC, they shall be released on bail by
the arresting/investigating officer or the trial court on terms and
conditions to be fixed by the trial court.
In addition, the appellants – Jay Shri and Hitesh Kela shall
comply with the conditions mentioned in Section 438(2) of the Code
of Criminal Procedure, 1973.
Recording the aforesaid, the impugned judgment/order is set
aside and the appeal is allowed.
We clarify that the grant of anticipatory bail and the
observations made in the present order will not be treated as an
expression of opinion on the merits of the case. Further, this
order will have no bearing whatsoever on any civil proceeding(s).
3 Indian Oil Corpn. v. NEPC India Ltd. and Others, (2006) 6 SCC 736; Vijay Kumar Ghai and Others v. State of West Bengal and Others, (2022) 7 SCC 124. 4 Indian Oil Corpn. v. NEPC India Ltd. and Others, (2006) 6 SCC 736, para 13.
Crl.A @ SLP(Crl.) No. 14423/2023 2 Non-Reportable
Pending application(s), if any, shall stand disposed of.
..................J. (SANJIV KHANNA)
..................J. (DIPANKAR DATTA) NEW DELHI;
JANUARY 19, 2024.
Crl.A @ SLP(Crl.) No. 14423/2023 3
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