Allegations of Cheating and Conspiracy Dismissed as Court Finds Dispute to be Civil in Nature
In a significant ruling, the Delhi High Court has quashed a criminal complaint filed against officials of the Central Bank of India and others, accused of cheating and criminal breach of trust by a complainant associated with Cosco Sales & Services Pvt. Ltd. and Cosco Blossoms Pvt. Ltd. The court, presided over by Justice Neena Bansal Krishna, delivered its judgment on February 23, 2026, highlighting that the allegations did not constitute a criminal offence and were purely civil in nature.
The case originated from a complaint filed by Mr. Suresh Goel, who alleged that bank officials had wrongfully retained Rs. 58 lakhs deposited in a 'No Lien Account' as part of a One Time Settlement (OTS) agreement. The complaint further accused the bank of conspiring with UV Asset Reconstruction Company Ltd. (UVARCL) to misappropriate funds and execute a fraudulent Assignment Agreement.
The court meticulously examined the facts, noting that the OTS failed due to the complainant's inability to adhere to its terms. Consequently, the bank was within its rights to adjust the deposited amount towards outstanding liabilities. The judgment emphasized that the dispute was essentially about the adjustment or refund of money arising from contractual terms, lacking any fraudulent or dishonest intent from the bank officials or UVARCL.
Justice Krishna further noted that the Assignment Agreement, a business decision by the bank, did not demonstrate any conspiracy or intent to cheat. The court found no specific allegations or material evidence to support claims of a criminal conspiracy or cheating, thereby quashing the complaint filed under Sections 420, 406, 409, and 120B of the Indian Penal Code.
The decision underscores the importance of distinguishing between civil and criminal matters, particularly in financial disputes. The court's ruling prevents the misuse of criminal proceedings in cases that are fundamentally civil in nature, ensuring that legal processes are not abused.
Bottom Line:
Complaint alleging cheating and criminal breach of trust under Sections 420, 406, 409, and 120B IPC quashed as it did not disclose any criminal offence, and the dispute was purely civil in nature.
Statutory provision(s): Sections 420, 406, 409, 120B of the Indian Penal Code, Section 482 of the Criminal Procedure Code, 1973
Mahender Singh v. State (Govt of NCT of Delhi), (Delhi) : Law Finder Doc id # 2857182
