Supreme Court Quashes Criminal Proceedings As Complainant Availed Civil Remedy ; Clarifies This Order Not to Be Treated As Precedent

The Supreme Court, in an judgment passed yesterday, quashed criminal proceedings against an accused in a cheating case after noticing that the complainant in fact availed civil remedy.

The court however clarified that this order in the facts and circumstances of the present case and the same shall not be cited as a precedent.

In this case, the complainant alleged that his signature on a sale deed has been forged as a part of the criminal conspiracy hatched by the accused in collusion with the other co-accused. A charge-sheet was filed against the accused alleging commission of offences of cheating under Section 420 IPC etc. Later, the complainant also filed a suit seeking cancellation of the sale deed. Citing this development, the accused moved the Telangana High Court under Section 482 CrPC which refused to quash the complaint.

Taking note of the facts on record, the Apex Court bench observed that in this case, the police has made a mockery of the entire investigation. It further noticed that the Civil Court is seized of the question as regards the legality and validity of the disputed sale deed. 

"The matter is sub judice in the Civil Court. At this juncture and more particularly in the peculiar facts and circumstances of the case, it will not be proper to permit the criminal prosecution to proceed further on the allegation of the sale deed being forged. That question will have to be decided by the Civil Court after recording the evidence and hearing the parties in accordance with law. It would not be proper having regard to what has been highlighted by us to permit the complainant to prosecute the appellant on this allegation when the validity of the sale deed is being tested before the Civil Court.", the court said.

The court observed that whether a complaint discloses a criminal offence or not, depends upon the nature of the act alleged thereunder. The court said that there is no convincing legal evidence on record to put the accused herein to trial for the alleged offences.

"Whether the essential ingredients of a criminal offence are present or not, has to be judged by the High Court. A complaint disclosing civil transaction may also have a criminal texture. But the High Court must see whether the dispute which is in substance of a civil nature is given a cloak of a criminal offence. In such a situation, if civil remedy is available and is in fact adopted, as has happened in the case on hand, the High Court should have quashed the criminal proceeding to prevent abuse of process of court.", the court said while allowing the appeal.

The bench clarified that this order (1) will not come in the way of instituting appropriate proceedings in future in case the Civil Court comes to the conclusion that the disputed sale deed dated 29.12.2010 is forged (2) shall not be cited as a precedent.

Case details

R Nagender Yadav vs State of Telangana | 2022 LiveLaw (SC) 1030 | CrA 2290 OF 2022 | 15 Dec 2022 | Justices S. Abdul Nazeer and J B Pardiwala

For Petitioner(s) Mr. Abhijit Sengupta, AOR Mr. Rohit Jaiswal, Adv. Mr. Kumar Neeraj, Adv. Mr. R.S. Mishra, Adv. Ms. Shivani Jain, adv.

For Respondent(s) Mr. S.. Udaya Kumar Sagar, AOR Ms. Sweena Nair, Adv

Headnotes

Code of Criminal Procedure, 1973 ; Section 482 - Complainant alleged that his signature on a sale deed has been forged - Later filed civil suit seeking cancellation of sale deed - High Court refused to quash the complaint - While allowing the appeal, the Supreme Court said : A complaint disclosing civil transaction may also have a criminal texture. But the High Court must see whether the dispute which is in substance of a civil nature is given a cloak of a criminal offence. In such a situation, if civil remedy is available and is in fact adopted, the High Court should have quashed the criminal proceeding to prevent abuse of process of court - This order (1) will not come in the way of instituting appropriate proceedings in future in case the Civil Court comes to the conclusion that the disputed sale deed is forged (2) shall not be cited as a precedent.

Code of Criminal Procedure, 1973 ; Section 482 - While exercising its jurisdiction under Section 482 of the CrPC, the High Court has to be conscious that this power is to be exercised sparingly and only for the purpose of prevention of abuse of the process of the court or otherwise to secure the ends of justice. Whether a complaint discloses a criminal offence or not, depends upon the nature of the act alleged thereunder. (Para 16)

Code of Criminal Procedure, 1973 ; Section 482 - Perfunctory investigation cannot be a ground either to quash the criminal proceedings or even to acquit the accused. (Para 14)

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