High Court of Jharkhand Quashes Cheating Case, Calls Property Row a Purely Civil Dispute
Nageshwar Prasad Verma v. State of Jharkhand
The Court quashed criminal proceedings arising out of a failed family settlement between two brothers over a joint house. The dispute stemmed from a village panchayat agreement under which the complainant allegedly paid ₹50,000 to the petitioners in return for vacating the shared premises. When they failed to do so, the matter was referred to police under Section 156(3) CrPC. Police found the issue civil in nature and did not file a charge sheet. However, the Magistrate later took cognizance under Sections 406 and 420 read with Section 34 IPC based on a protest petition.
Setting aside the order dated 27.09.2018, the High Court held that non-performance of an agreement does not automatically amount to cheating or criminal breach of trust. It found no dishonest intention at the inception of the agreement and no “entrustment” or misappropriation to attract criminal liability.
Invoking its inherent powers under Section 482 CrPC, the Court ruled that continuation of the case would amount to an abuse of the process of law and quashed the proceedings.
