BREACH OF CONTRACT SHOULD NOT LEAD TO INITIATION OF CRIMINAL PROCEEDINGS, SAYS SUPREME COURT

Criminal process for oblique purposes is bad in law and amounts abuse of law

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The Supreme Court in the case Lalit Chaturvedi And Ors. versus The State Of Uttar Pradesh And Anr., observed and has reiterated that the contractual dispute or breach of contract per se should not lead to the initiation of a criminal proceeding.

The bench comprising of Justice Sanjiv Khanna and Justice Dipankar Datta in the case observed that the prayer is made to the police for recovery of money from the appellants. Thus, the police is to investigate the allegations which discloses a criminal act. Police does not have the power and authority to recover money or act as a civil court for recovery of money.

Therefore, the respondent-complainant’s only grievance is regarding the failure of the appellant to pay the outstanding amount despite repeated reminders made by the complainant.

In the present case, the FIR was registered section 405 and section 506 of the Indian Penal Code against the appellant-accused.

The High Court in the case observed and has quashed the criminal proceedings against the appellant accused but granted protection from the arrest.