Allegations under Sections 406 and 420 of the IPC : Criminal law should not be used for personal vendettas or harassment.

Supreme Court Quashes Criminal Proceedings Against Inder Chand Bagri Allegations of breach of trust and cheating dismissed, court warns against using criminal law for personal vendettas  

In a significant judgment, the Supreme Court of India has quashed the criminal proceedings against Inder Chand Bagri, who was accused of criminal breach of trust and cheating in a long-standing dispute over partnership property. The court, comprising Justices B.V. Nagarathna and R. Mahadevan, ruled that the allegations did not satisfy the necessary ingredients for the offences under Sections 406 and 420 of the Indian Penal Code (IPC).

The case originated from a complaint filed by Jagadish Prasad Bagri, alleging that Inder Chand Bagri misappropriated property belonging to a partnership firm and induced the complainant into entering a partnership under false pretenses. The Supreme Court's decision overturns an earlier ruling by the Gauhati High Court, which refused to quash the proceedings against Inder Chand Bagri while dismissing the case against another accused.

Justice B.V. Nagarathna, delivering the judgment, emphasized the absence of fraudulent or dishonest intention at the time of creating the partnership agreement, which is a prerequisite for constituting an offence under Section 420 of IPC. The court also highlighted that the allegations of criminal breach of trust did not demonstrate any fraudulent misappropriation, as required under Section 406.

The ruling pointed out that the complainant, Jagadish Prasad Bagri, failed to provide evidence of any intentional deception or fraudulent inducement by Inder Chand Bagri. The court noted that the property in question was agreed to revert to Inder Chand Bagri under a supplementary agreement once the lease with the Food Corporation of India expired.

The Supreme Court cautioned against the misuse of criminal proceedings as a tool for personal vendettas, stating that such actions could lead to undue harassment and strain the judicial system. The judgment aligns with the principles laid out in previous landmark cases, reinforcing that criminal law should not be employed to settle private disputes.

The decision underscores the importance of establishing a clear criminal intent before proceeding with allegations of cheating and breach of trust, thereby setting a precedent for similar cases in the future.

Bottom Line:

The Supreme Court quashes the criminal proceedings against the appellant-accused, holding that the allegations do not satisfy the ingredients of offences under Sections 406 and 420 of the IPC, and observes that criminal law should not be used for personal vendettas or harassment.

Statutory provision(s): Sections 406, 420, 120B of the Indian Penal Code, 1860; Section 482 of the Criminal Procedure Code, 1973.

Inder Chand Bagri v. Jagadish Prasad Bagri, (SC) : Law Finder Doc Id # 2812361