Criminal Procedure Code, 1973

— S. 482 — Petition under S. 482 CrPC for quashing criminal complaint alleging commission of various offences under Penal Code — Disputes arising from breach of contract — Civil remedy available and availed of — Remedy under criminal law, held not barred if the allegations disclose a criminal offence — Allegations contained in the complaint, taken on their face value, if, on facts, constituted offences under Penal Code — Maintainability of the petition under S. 482 — However, current practice of misuse of criminal process to put undue pressure in civil disputes deprecated, (2006) 6 SCC 736-A

Penal Code, 1860

— Ss. 405, 420, 403 & 415 — Breach of contract — Filing of criminal complaint — Maintainability, (2006) 6 SCC 736-B

Criminal Procedure Code, 1973

— Ss. 482 and 250 — Criminal complaint when can be quashed — Principles restated — If allegations in the complaint, taken at their face value, disclose a criminal offence, complaint cannot be quashed merely because it relates to a commercial transaction or breach of contract for which civil remedy is available or has been availed — A commercial transaction or dispute may also involve criminal offence — If it is found that a frivolous criminal complaint had been filed knowing well that remedy lay only in civil law, person who filed such complaint should himself be made accountable in accordance with law at the end of such proceeding — Court should exercise power under S. 250 CrPC frequently where there is malice or frivolousness or ulterior motives on the part of the complainant, (2006) 6 SCC 736-C

Penal Code, 1860

— S. 378 — Theft — Unless property is in possession of any person other than the accused, question of theft does not arise, (2006) 6 SCC 736-D

Penal Code, 1860

— S. 403 — Dishonest misappropriation of movable property — Ingredients of the offence — Property in question must belong to a person other than the accused so as to constitute offence under S. 403, (2006) 6 SCC 736-E

Penal Code, 1860

— S. 405 — Criminal breach of trust — Ingredients — Entrustment of the property or dominion over the property — Property hypothecated to creditor — Creating only a charge on the property with right in favour of the creditor to take possession in the event of default on the part of debtor-hypothecator — Possession remaining with the debtor-owner and creditor having neither ownership nor beneficial interest in the property — Held, element of entrustment not involved in such hypothecation — Owner-debtor does not hold the property in trust for the creditor — Charge over the property created in favour of the creditor does not create a beneficial interest in the creditor unless he takes possession of the property in exercise of his right under the deed of hypothecation — Whether the deed created a floating charge or a fixed charge inconsequential, (2006) 6 SCC 736-F

Property Law

Hypothecation

— Meaning — Ownership and possession of the property hypothecated remain with the debtor-owner — Creditor does not get any beneficial interest in the property — Creditor only gets a charge over the property and a right to take possession and sell the property to recover the dues — Words ``beneficial interest'', ``floating charge'' and ``fixed charge'' — Meaning of, (2006) 6 SCC 736-G

Penal Code, 1860

— S. 415 — Cheating — Ingredients — Having regard to allegations made in the complaint, held, on facts, elements of deception and inducement with fraudulent intention prima facie made out, (2006) 6 SCC 736-H

Penal Code, 1860

— S. 425 — Mischief — Ingredients — Ownership and possession of the property is not relevant — Even though the property belongs to the accused, if the ingredients are made out, accused can be held to have committed mischief, (2006) 6 SCC 736-I