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Issues Involved:
1. Whether the learned Single Judge was justified in invoking the powers u/s 482 Cr.P.C. to set aside the proceedings pending before the Magistrate. 2. Whether the allegations in the complaint made out offences punishable u/s 420, 406, 423, 424 read with Section 120B I.P.C. 3. Whether the dispute between the parties was of a predominantly civil nature. Summary: Issue 1: Invocation of Powers u/s 482 Cr.P.C. The Supreme Court examined whether the learned Single Judge was justified in invoking the powers u/s 482 Cr.P.C. to quash the proceedings pending before the Magistrate. The Court referred to the contours of the power u/s 482 Cr.P.C. as explained in previous decisions, including Smt. Nagawwa vs. Veeranna Shivalingappa Konjalgi and Others, which outlined circumstances under which a Magistrate's order issuing process could be quashed. These include situations where the complaint makes out no case against the accused, where allegations are patently absurd, where the Magistrate's discretion is capricious, or where the complaint suffers from fundamental legal defects. Issue 2: Allegations of Offences u/s 420, 406, 423, 424 read with Section 120B I.P.C. The Court considered whether the allegations in the complaint made out offences punishable u/s 420, 406, 423, 424 read with Section 120B I.P.C. It was noted that the appellant's main allegation was that the respondents committed the offence u/s 420 I.P.C. by cheating and dishonestly inducing the appellant to deliver property. However, the Court found no allegation of willful misrepresentation or fraudulent inducement by the respondents. The Court emphasized that an honest man entering into a contract is deemed to represent that he has the present intention of carrying it out, and failure to pay a debt does not necessarily constitute deception. Issue 3: Predominantly Civil Nature of the Dispute The Court addressed whether the dispute between the parties was of a predominantly civil nature. It referred to previous cases, including Madhavrao Jiwajirao Scindia and Others vs. Sambhajirao Chandrojirao Angre and Others, which held that certain disputes, though involving elements of both civil wrong and criminal offence, may predominantly be civil wrongs. The Court observed that the present case involved a valid lease agreement and the respondents' failure to discharge contractual obligations, without any fraudulent inducement or willful misrepresentation. The Court concluded that the appellant had an oblique motive of causing harassment to the respondents through magisterial proceedings. Conclusion: The Supreme Court upheld the decision of the learned Single Judge to quash the proceedings, finding no element of deception in the transaction and recognizing the civil nature of the dispute. The appeal was dismissed with no order as to costs.
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