Availing Civil Remedy No Basis To Quash Criminal Proceedings When Facts Prima Facie Reveal Criminal Offence: Rajasthan High Court

The Rajasthan High Court (“the Court”) has reiterated that availing a civil remedy does not by itself become grounds to quash a criminal complaint filed concerning facts which not only make out a civil wrong but a criminal offence as well. The Court said:

“Merely on account of the fact that complainant had a civil remedy as also has availed that remedy, the initiation of criminal motion against the petitioner may not be allowed to quash at the nascent stage of investigation in the impugned FIR.”

A bench of Justice Sudesh Bansal was hearing a plea under Section 482 CrPC seeking quashing of an FIR filed against the petitioner. The FIR arose in the background of an agreement of sale entered into between the petitioner and the complainant per which the petitioner had agreed to sell his share in a plot to the complainant for Rs 75 lakhs.

Out of these, Rs 10 lakhs were received by the petitioner. It had been contended in the FIR that the petitioner had given wrong assurance that the property was undisputed with the petitioner being its sole owner and that its possession would be handed over at the time of registry. However, a reply notice was received by the complainant from the petitioner which revealed that there was a pending dispute on the property between the petitioner and his brother. Due to this reason, the petitioner was unable to hand over the property to the complainant.

The complainant alleged that the petitioner received Rs 10 lakhs by cheating and misappropriating the same by breaching the trust of the complainant. Hence, a case under Sections 420, 406 and 120-B was filed.

Counsel for the petitioner argued that the complainant had also filed a suit for specific performance that had been decreed in his favour. Hence, in view of the complainant's grievance being resolved by the civil court, the FIR should be quashed. The counsel also contended that bare perusal of the FIR itself revealed a dispute of a civil nature between the parties and lodging an FIR to settle such civil disputes was an abuse of the process of law.

On the other hand, counsel for the complainant argued that the dispute between the parties might be a civil wrong, but at the same time, it also contained elements of a criminal offence. Hence, merely availing of civil remedy could not be a ground to quash criminal proceedings, it was contended.

After hearing both sides, the Court highlighted that the dispute between parties, apart from giving rise to a dispute of a civil nature, also involved allegations of cheating and criminal breach of trust. The Court also observed that it was a settled position that in a given case, civil and criminal proceedings could run simultaneously. The Court referred to the Supreme Court case of Vesa Holding Pvt. Ltd. v State of Kerala in which the following was observed:

“It is true that a given set of facts may make out a civil wrong as also a criminal offence and only because a civil remedy may be available to the complainant that itself cannot be a ground to quash a criminal proceeding. The real test is whether the allegations in the complaint disclose the criminal offence of cheating or not.”

Furthermore, the Court also observed that it had been settled by many Supreme Court cases that even though inherent powers of high court were of wide amplitude, these should be used sparingly in the rarest of rare cases. The inherent powers to quash FIR, complaint or criminal proceedings should be exercised to prevent abuse of process of any court or to secure ends of justice, the Court noted.

In the background of these positions of law, the Court stated that the allegations contained elements of criminality, especially in light of the offence of cheating and criminal breach of trust. Thus it held that the complaint could not be quashed merely because the complainant availed a civil remedy.

The Court opined that the entirety of facts and true account of events would come to light only when the investigation is allowed to be completed. Accordingly, the petition was disposed of without quashing the criminal complaint.

Title: Durga Lal Verma v State of Rajasthan

Citation: 2024 LiveLaw (Raj) 128

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