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2021 (9) TMI 707 - HC - Indian LawsDishonor of Cheque - cheating versus breach of contract - allegation is that petitioners entered into a criminal conspiracy to misappropriate the outstanding dues payable to the opposite party - fraudulent or dishonest intention at the time of making the promise or not - Section 482 of the Code of Criminal Procedure - HELD THAT:- In the instant case the petitioners practically admitted their outstanding dues by filing the instant application. It is contended on behalf of the petitioners that they have no fraudulent or dishonest intention to induce the opposite party to deliver the goods, viz, C.R Coil and the petitioners have already paid a sum of ₹ 8 (eight) lakh as part payment of the consideration money. Since there is no ingredient of offence under Section 420 of the IPC against the petitioners from the very inception of transaction between the parties the dispute is essentially civil in nature. Applicability of Section 482 of the Code - HELD THAT:- It is no longer a res integra that the power under Section 482 of the Code must be exercised sparingly, with circumspection and in rarest of rare cases. Exercise of inherent power under Section 482 of the Code is not the rule but the exception. The exception is applicable only when it is brought to the notice of the court that grave miscarriage of justice would be committed if the trial is allowed to proceed where the accused would be harassed unnecessarily. This court is not unmindful to note that there remains fine line of distinction between breach of contract and cheating. In case of cheating, it is the duty of the complainant to make out a case that from the very inception of establishment of commercial contractual relation between the parties, the accused had an intention to deceive fraudulently or dishonestly the complainant to induce him to deliver property. It is true that the complainant/opposite party No.2 failed to make out any such case in his petition of complaint. On the other hand, the petitioners paid part of consideration money to the opposite party No.2. Subsequently, the rest amount of ₹ 16,24,723/- was not paid to the opposite party No.2 - This court has inherent power under Section 482 of the Code amongst other to prevent abuse of the process of the court and to otherwise secure ends of justice. The court has the mandatory duty not only to prevent abuse of the process of the court but also to secure ends of justice. The High Court can very well quash the proceeding holding, inter alia, that the dispute between the parties is civil in nature and giving liberty to the opposite party to move the Civil Court to recover the unpaid amount of consideration money - Application disposed off.
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