Court Rules Allegations Stem from Civil Dispute, Lacks Fraudulent Intent Required for Criminal Prosecution
In a significant judgment, the Chhattisgarh High Court has quashed the FIR and subsequent criminal proceedings against Monali Baghmare and others, which were initially lodged by complainant Virendra Baghel, claiming offences under the Bharatiya Nyaya Sanhita, 2023. The court found that the allegations arose from a business transaction that lacked the fraudulent intent necessary to constitute a criminal offence.
The case originated from a dispute involving RIL (Resolve Improve Life) India Marketing Private Limited, where the complainant alleged that he was induced into depositing money under false promises of employment benefits. The court, presided over by Chief Justice Ramesh Sinha and Justice Ravindra Kumar Agrawal, determined that the complainant had voluntarily entered into a Direct Seller Agreement with the company, which did not stipulate any of the promised benefits he claimed to have been cheated out of.
The judgment emphasized the lack of fraudulent intent at the inception of the transaction and highlighted that the dispute was fundamentally civil in nature, arising from a contractual relationship. The court underscored that mere non-fulfillment of a promise or breach of contractual terms does not attract criminal liability unless accompanied by fraudulent intent from the start.
The court also noted procedural irregularities, such as the abrupt reclassification of the case from non-cognizable to cognizable without new evidence, supporting the argument of an abuse of the legal process. Citing precedents, the court reiterated that criminal proceedings should not be used as a substitute for civil remedies and stressed the importance of preventing the misuse of criminal law for what essentially are civil disputes.
In quashing the FIR, charge sheet, and all subsequent legal proceedings, the court reaffirmed the principles laid out in landmark judgments regarding the exercise of its power to prevent the misuse of the legal process and to secure the ends of justice.
Bottom Line :
Bharatiya Nyaya Sanhita, 2023 - Quashing of FIR and criminal proceedings - Allegations arising from commercial and contractual relationship - Mere breach of contractual terms or non-fulfilment of promises without fraudulent intent at inception does not constitute a criminal offence - Abuse of process of law if criminal proceedings are allowed to continue for a civil dispute.
Statutory provision(s):
Bharatiya Nyaya Sanhita, 2023 Sections 318(4), 3(5); Criminal Procedure Code, 1973 Section 482
Monali Baghmare v. State of Chhattisgarh, (Chhattisgarh)(DB) : Law Finder Doc id # 2958185
