In Brief
A retired bank employee borrowed ₹27 lakh from a moneylender in 2008, which he failed to repay. The lender filed both a civil suit for recovery and a criminal complaint alleging cheating and criminal breach of trust. The High Court dismissed the appellant's petition to quash the criminal charges. The Supreme Court allowed the appeal, holding that a mere failure to repay a loan does not constitute cheating or criminal breach of trust without proof of fraudulent intent from the transaction's inception. The Court found no dishonest inducement in the complaint and quashed all criminal proceedings, holding that such disputes are civil in nature and should not be criminalised absent clear evidence of fraud.
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