New Delhi: The Supreme Court has said no offence of cheating and criminal breach of trust under the penal law can be invoked in a case related to a mere breach of contract, unless some dishonest intent is shown.
A bench of Justices Sanjiv Khanna and Dipankar Datta granted anticipatory bail to Jay Shri and her husband Hitesh Kala in an FIR lodged by the Rajasthan Police in a case arising out of a dispute related to the sale of a property.
"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, 1860, unless fraudulent or dishonest intention is shown right at the beginning of the transaction," the bench said.
The bench further pointed out that the court has repeatedly cautioned about converting purely civil disputes into criminal cases.
"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," the bench added.
After hearing the parties, the court allowed the appeal against the Rajasthan High Court's October 10, 2023 order denying them pre-arrest bail.
Published 20 January 2024, 14:32 IST
