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2018 (3) TMI 1960 - ANDHRA PRADESH HIGH COURTDishonor of Cheque - insufficiency of funds - criminal breach of trust or not - section 138 of NI Act - offences punishable under Sections 420 and 406 IPC - HELD THAT:- Every breach of trust may not result in a penal offence of criminal breach of trust, as the act of breach of trust involves a civil wrong in respect of which a civil action can be initiated. A breach of trust with mens rea is an important aspect to attract the provisions under Sections 406 and 420 IPC. In this particular case, the petitioner is subscriber of a chit. He became the successful bidder and received the bid amount. However, he could not pay the last five instalments, for which he has issued a cheque, which was dishonoured because of insufficiency of funds. For dishonour of cheque, the 2nd respondent/complainant has got the remedy of approaching the appropriate Court under Section 138 of the Negotiable Instruments Act. Instead of resorting to the said remedy, the 2nd respondent/complainant has filed the present private complaint against the petitioner, which is nothing but an abuse of the process of law and hence, the petitioner is entitled for quashing of the proceedings against him. This Criminal Petition is allowed by quashing the proceedings against the petitioner/sole accused for the offences punishable under Sections 420 and 406 IPC.
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