In Brief
A film producer borrowed money from an investor with promises of profit-sharing returns (30%-47%). The film was completed and released, but generated no profits. When the investor objected to the release, the producer issued two post-dated cheques to repay the principal, which later dishonoured. The investor filed a criminal complaint for cheating and breach of trust. The Supreme Court quashed the cheating charges, holding that without dishonest intent at inception—and given the inherently risky nature of film investment—the dispute is civil, not criminal. The Court distinguished between breach of contract and criminal cheating, emphasizing that mere failure to honour promises in high-risk ventures does not constitute fraud.
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