• Vesa Holdings P. Ltd. Vs. State of Kerala

  • Head Note

    • Accused Favoring Judgment- Quashing of Criminal Prosecution- Every Breach Of Contract Would Not Give Rise To An Offence Of Cheating- Penal Code, 1860 - Sections 417, 418 & 420 - Cheating, offence of - What it is- Every breach of contract would not give rise to an offence of cheating - Only in those cases breach of contract would amount to cheating where there was any deception played at the very inception - If the intention to cheat has developed later on, the same cannot amount to cheating - Even in a case where allegations are made in regard to failure on the part of the accused to keep his promise, in the absence of culpable intention at the time of making initial promise being absent, no offence u/s 420 IPC can be said to have been made out.- Head Note-2: Criminal Procedure Code, 1973 - Section 482 - Quashing criminal prosecution - Refusal to exercise the power u/s 482 CrPC - Justifiability - High Court committed an error in refusing to exercise the power u/s 482 Cr.P.C. to quash the proceedings - Every breach of contract would not give rise to an offence of cheating - Penal Code, 1860 - Sections 417, 418 & 420 - Offence of cheating- Ingredients of.- HELD: The settled proposition of law is that every breach of contract would not give rise to an offence of cheating and only in those cases breach of contract would amount to cheating where there was any deception played at the very inception. If the intention to cheat has developed later on, the same cannot amount to cheating. In other words for the purpose of constituting an offence of cheating, the complainant is required to show that the accused had fraudulent or dishonest intention at the time of making promise or representation. Even in a case where allegations are made in regard to failure on the part of the accused to keep his promise, in the absence of a culpable intention at the time of making initial promise being absent, no offence under Section 420 of the Indian Penal Code can be said to have been made out. Further Held- Criminal proceedings should not be encouraged when it is found to be mala fide or otherwise an abuse of the process of the court. Superior courts while exercising this power should also strive to serve the ends of justice. In our opinion, in view of these facts allowing the police investigation to continue would amount to an abuse of the process of court and the High Court committed an error in refusing to exercise the power under Section 482 Criminal Procedure Code to quash the proceedings.  Vesa Holdings P. Ltd. v. State of Kerala, Criminal Appeal No. 2341/2011, Judgment Dated-17/03/2015, 2015(3) SCALE 782, 2015(3) SLT 501, 2015(2) Crimes 114(SC) Bench-V. Gopala Gowda & J.: C. Nagappan, JJ.
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