Breach of pact not a criminal offence, rules High Court

Saurabh Malik

Tribune News Service

Chandigarh, December 9

The Punjab and Haryana High Court has made it clear that breach of an agreement between parties will not necessarily result in a criminal offence warranting the registration of a case by the police.

“Breach of contractual obligation normally does not give rise to criminal offence. Criminal prosecution is for punishing offenders for having committed a criminal offence. Breach of an agreement between parties does not necessarily result in criminal offence,” asserted Justice Anil Kshetarpal of the High Court.

Referring to a plethora of Supreme Court judgments, Justice Kshetarpal noted that the apex court had cautioned subordinate courts to be wary of the tendency of parties to criminalise civil disputes, which were essentially of civil nature having no ingredient of criminal offence.

The ruling by Justice Kshetarpal came on a petition filed against Haryana and another respondent by Ravi Kukreja and another petitioner through counsel Gautam Dutt and Akanksha Verma.

The petitioners were seeking quashing of an FIR for cheating, criminal breach of trust and other offences registered under relevant sections of the IPC at the Sonepat City police station.

Directions were also sought for quashing subsequent proceedings, including final police report dated June 12, 2014, and all consequential proceedings arising therefrom.

The quashing was sought on the grounds that it was a civil dispute and not a criminal offence and as such, continuation of criminal proceedings would result in abuse of the process of court. The petitioners, directors of breweries, had entered into agreement to sell products before some issues arose.

Justice Kshetarpal asserted that only a narrow dispute remained between two sides — whether or not non-refund of money amounted to a criminal offence under Section 406 and 420 of the IPC.

“This court has heard counsel for the parties and with their able assistance, gone through the paper book. It is apparent that a civil dispute between the parties is sought to be converted into a criminal case,” Justice Kshetarpal observed.