In Brief
A retired bank employee borrowed Rs. 27 lakh from a money lender in 2008 but failed to repay it within the agreed timeframe. 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 accused's petition to quash charges. The Supreme Court held that mere inability to repay a loan does not constitute cheating or criminal breach of trust without proof of fraudulent inducement or dishonest intention at the transaction's inception. The Court distinguished between civil breach of contract and criminal offences, emphasizing that the lender's awareness of the borrower's circumstances and the pending civil suit negated the criminal character of the dispute. The Court allowed the appeal and quashed all criminal proceedings.
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