Failure to Pay Rent is not a Criminal Offence: SC

Money Deal Compensation Law Insider

Anurupa Pal

Published on: March 15, 2022 at 21:10 IST

The Supreme Court of India recently Quashed a First Information Report (FIR) Registered against a Renter for Non-Payment of Rent Arrears.

The Division Bench of Justice Sanjiv Khanna and Justice Bela M Trivedi said that Failure or Non-Payment of Rent may have Civil Consequences but cannot be considered a Criminal Offence under the Indian Penal Code (IPC).

“We are of the Opinion that no Criminal Offence is made out, even if we accept the Factual Assertions made in the Complaint, which was Registered as the First Information Report. Failure to pay rent may have Civil Consequences, but is not a Penal Offence under the Indian Penal Code, 1860 (IPC). Mandatory Legal requirements for the Offence of Cheating under Section 415 and that of Misappropriation under Section 403 Indian Penal Code are Missing,” said the Court.

The Apex Court was considering an Appeal Assailing an order of the Allahabad High Court that had refused to Quash the First Information Record against the Present Appellant under Section 415 (Cheating) and Section 403 (Dishonest Misappropriation of Property) of the Indian Penal Code.

The Supreme of India then said to take help of the Present Civil Remedies.

Advocates Ravi Chandra, Kumar Sushobhan, Dinesh S Badiar, VK Anand, Kajol Singh, and Advocate-On-Record Ravi Kumar Tomar appeared for the Petitioners.

Senior Advocate V K Shukla, Advocate-On-Record Adarsh Upadhyay, with Advocates Amol Chitravanshi, Manish Chahar and Shashi Kiran appeared for the Respondents.

Also read:

Types of Agreements under the Indian Contract Act, 1872

Rights to Know before Reporting in a Police Station

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