Criminal Complaint For Offence Of Cheating After Giving Up Rights Under Agreement Is Abuse of Process Of Law: SC Quashes Cheating Case

The Court was hearing a Criminal Appeal to quash the proceedings of a complaint filed by the second respondent.

The bench of Justice Abhay S. Oka and Justice Ujjal Bhuyan observed, “As the second respondent had given up his rights under the agreements, it is crystal clear that continuing the complaint would be nothing but an abuse of the process of law.”

Brief Facts-

The appellants were the trustees and entered into two sale agreements with the second respondent and Uma Shankar, partners of Sri Mahakaleshwar Enterprises. The first respondent filed a criminal complaint against the appellants alleging fraud and conspiracy. The second respondent filed a complaint alleging the commission of offences punishable under Sections 420, 406, 424 and 120-B of the Indian Penal Code, 1860. The appellants sought discharge in the criminal case, which was denied by the Trial Court and upheld by the High Court of Jharkhand. The appellants' subsequent Writ Petition for quashing the Criminal Complaint was dismissed by the High Court on grounds of res judicata.

The Court noted that the second respondent categorically stated that in view of the out-of-court settlement with the appellants, he would not lay any claim in any manner whatsoever over the suit properties.

The Court further noted that the second respondent never disputed the correctness of what is stated in the said application, and the order passed permitting the withdrawal of the suit. Also, he did not challenge the order permitting withdrawal by filing any proceedings.

According to the Court, the second respondent by his act or omission gave up on his claim under the agreements.

Accordingly, the Supreme Court quashed the case pending before the judicial magistrate.

Cause Title: Sardar Ravi Inder Singh & Anr. v. State of Jharkhand & Anr. (Neutral Citation: 2024 INSC 472)