The Punjab and Haryana High Court, in response to a petition seeking protection from arrest in a Civil matter (based on an agreement to sell) held that the matter was purely of a civil nature and allegation of cheating and criminal breach of trust cannot not be leveled in case of such an agreement. The Court also expressed concerns about the tendency of giving ‘criminal procedure’ undertone to a civil dispute by lodging FIRs etc. Thus, in order to avoid harassment, the Court asked the police departments to look into registration of FIR in cases of civil nature.
Factual Background
An agreement to sell a property was entered into between Kuldeep Singh and co- owners of the property (including Manjit Kaur). Token money of Rs. 5,00,000/- was taken. The total sale consideration was fixed at Rs. 18,00,000/-. The date fixed for execution of sale deed was 3.5.2016.
On the very next day of entering into the agreement Kuldeep Singh entered into an agreement to sell with the complainant and took an advance of Rs. 6,50,000/-. It was alleged that fraud has been played with the complainant as there was litigation pending between the parties and stay granted by the Civil Court was operating.
An FIR under Sections 406 and 420 of IPC was registered, accusing Kuldeep Singh and Manjit Kaur of playing fraud on the complainant.
By impugned order Addl. Sessions Judge dismissed anticipatory bail application of the Petitioner, hence, aggrieved, the present petition was filed by Manjit Kaur.
Case of the Petitioner
Learned counsel for the petitioner submitted that the petitioner was singled out whereas the agreement to sell was entered by all three co-owners. There was no direct dealing of the petitioner with the complainant and the dispute is of civil nature.
The Counsel further relied on the receipt of money given to Kuldeep Singh specifying that there is stay operating with regard to property.
Case of the State
Learned counsel for the State opposed the contentions and submitted that an agreement to sell was entered for the property which was subjudice in the litigation and the complainant has been deprived of his money.
Reasoning and Decision of the Court
While considering the facts and circumstances of the matter and observing that the case was of a civil nature, the Court stated that:
“The complainant cannot allege cheating or criminal breach of trust against petitioner on the basis of agreement to sell entered by him with Kuldeep Singh. The petitioner was never a party to said agreement to sell. Moreover in receipt, it was specifically mentioned that registry will be done after vacation of stay.”
The petition was allowed “subject to petitioner's joining the investigation within two weeks. He shall be bound by the conditions under Section 438(2) Cr.P.C.”
The Hon’ble High Court also issued clarification on the tendency of giving criminal undertone to a civil dispute, in the following manner:
“anything observed hereinabove is only for the purpose of allowing the anticipatory bail to the petitioner. Before parting, it would be necessary to take note of the prevailing tendency to paint civil disputes as criminal acts. The endeavour is to somehow wriggle the other party in criminal proceedings for applying pressure to settle the issue. The alternative route adopted is considered to be a short cut to the civil litigation. Such tendencies have been deprecated by the Apex Court.”
Further, mentioning how difference between a civil and a criminal matter is no longer res integra, the Court observed:
“The distinction between the civil dispute and criminal proceeding is no longer res integra, various judgments of the Apex Court have dealt with the issue. It is being noticed that in number of cases involving pure and simple money recovery, specific performance issues or such like matters, FIRs are being registered by the police authorities.”
Therefore, the Court held that:
“In order to avoid harassment in the matters involving civil disputes, it is need of the hour that the police department at the appropriate level, looks into the process of registering FIR, especially in matters having tone of civil dispute. Without making any further comments, it is expected that the matter would be looked into and necessary steps would be taken.”
Thus, the Petitioner was given protection from arrest.
Case Details
Case Nmae: Manjit Singh v. State of Punjab
Bench: Hon'ble Mr. Justice Avneesh Jhingan
Date of Decision: 30.10.2020
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