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Jay Shri vs The State Of Rajasthan

Supreme Court19 January 2024Dipankar Datta

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

Non-Reportable

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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