Published on: 06 January 2023 at 08:12 IST
Court: Supreme Court of India
Citation: Thermax Ltd. v. K.M. Johny 2011
Honourable Supreme Court of India has held that the Complaint before the Magistrate under the provision of Section 156(3) of the Code of Criminal Procedure, 1973 for registration of First Information Report must disclose relevant material ingredients of Sections 405, 406, 420 read with Section 34 of the Indian Penal Code, 1860.
It is held that if the Hon’ble Court finds that the matter is primarily of the Civil Nature then the same cannot be agitated in the form of Criminal Proceeding.
It is further held that Hon’ble Courts must be vigilant to observe whether the criminal proceeding instituted to over the issue of the period of limitation citing delay on the part of the litigant.
- It is settled law that the essential ingredient for an offence under Section 420, which we have already extracted, is that there has to be dishonest intention to deceive another person. We have already quoted the relevant allegations in the complaint and perusal of the same clearly shows that no such dishonest intention can be seen or even inferred inasmuch as the entire dispute pertains to contractual obligations between the parties. Since the very ingredients of Section 420 are not attracted, the prosecution initiated is wholly untenable. Even if we admit that allegations in the complaint do make out a dispute, still it ought to be considered that the same is merely a breach of contract and the same cannot give rise to criminal prosecution for cheating unless fraudulent or dishonest intention is shown right from the beginning of the transaction. Inasmuch as there are number of documents to show that the appellant Company had acted in terms of the agreement and in a bona fide manner, it cannot be said that the act of the appellant Company amounts to a breach of contract.
Drafted By Abhijit Mishra