In Brief
Two parties entered an oral agreement to sell a godown for ₹1.35 crore. The buyer claimed to have paid ₹19 lakh toward the purchase price between June-September 2020, but a ₹10 lakh cheque bounced. After a year, the sellers sold the property at ₹90 lakh due to changed circumstances. The buyer filed an FIR alleging cheating, criminal breach of trust, intimidation, and insult. Despite two dismissals by the lower court, the Police registered an FIR. The High Court dismissed the quash petition. The Supreme Court allowed the appeal, holding that breach of contract and non-payment of consideration, without fraudulent intention at inception, do not constitute criminal offences. The chargesheet was deficient in substantive particulars. The Court imposed ₹50,000 costs on Uttar Pradesh for misusing criminal process.
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