27.02.2026 vs State Of H.P. And Another on 9 March, 2026

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    Himachal Pradesh High Court

    Reserved On: 27.02.2026 vs State Of H.P. And Another on 9 March, 2026

                                                                                         2026:HHC:6246
    
    
    
    
          IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
    
    
    
    
                                                                                       .
                                                  Cr. MMO No. 1111 of 2025
    
    
    
    
    
                                                  Reserved on: 27.02.2026
                                                  Date of Decision: 09.03.2026.
    
    
    
    
    
        G. Haneef                                                                    ...Petitioner
    
    
    
    
                                                         of
                                               Versus
    
        State of H.P. and another                                                ...Respondents
    
    
        Coram
                               rt
    
        Hon'ble Mr Justice Rakesh Kainthla, Judge.
        Whether approved for reporting?1                   No
    
        For the Petitioner                                 :       Mr S.C. Sharma, Senior
    
    
    
                                                                   Advocate, with M/s
                                                                   Jyotirmay Bhatt and
                                                                   Sushmit Bhatt, Advocates.
    
    
    
    
        For Respondents No.1 & 2/State                     :       Mr Ajit Sharma, Deputy
                                                                   Advocate General.
    
    
    
    
    
        For respondent No.3                                :       Mr Narender Singh
    
    
    
    
    
                                                                   Thakur, Advocate.
    
    
        Rakesh Kainthla, Judge
    

    The petitioner has filed the present petition for

    quashing of FIR No. 64 of 2023, dated 31.3.2023, registered at

    SPONSORED

    Police Station Theog, District Shimla, H.P., for the commission of

    1
    Whether reporters of Local Papers may be allowed to see the judgment? Yes.

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    an offence punishable under Section 420 of the Indian Penal Code

    (IPC).

    .

    2. Briefly stated, the facts giving rise to the present

    petition are that the respondent No.3/informant was running a

    business of sale and purchase of apples at Parala, Sabji Mandi,

    of
    Tehsil Theog. SFC Karnatka, PSP Puducherry, FF Shaik Sadik

    Tirupati, YNC Noshad (V) Warangal and EFC Najmal Kerala had
    rt
    purchased apples from him, but had not paid him the money.

    They cheated the informant and deprived him of an amount of

    ₹2,54,83,017/-. Hence, the informant filed a complaint before the

    police, praying that an action be taken against the merchants as

    per the law. The police registered the FIR and investigated the

    matter.

    3. Being aggrieved by the registration of the FIR, the

    accused/petitioner has filed the present petition seeking the

    quashing of the FIR. It has been asserted that the contents of the

    FIR do not satisfy the requirement Section 420 of the IPC. There

    was a delay in reporting the matter to the police. The allegations

    in the FIR, even if accepted to be correct discloses a civil dispute

    related to the business transaction, and there is no criminality

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    involved in the present case. A mere breach of contract or non-

    payment of dues does not amount to cheating. Therefore, it was

    .

    prayed that the present petition be allowed and the FIR be

    quashed qua the petitioner.

    4. The petition is opposed by respondents No.1 and 2 by

    of
    filing a reply making preliminary submissions regarding the lack

    of maintainability and locus standi. The contents of the petition
    rt
    were admitted regarding the filing of the FIR. It was asserted that

    the petitioner had been absconding since 2019 and had not paid

    an amount of ₹1,04,28,946/- to the informant. The allegations in

    the FIR disclose the commission of a cognizable offence. The

    investigation is complete, and the charge sheet is to be filed

    against the petitioner. It was specifically denied that the dispute

    between the parties pertained to a commercial dispute and did

    not involve any criminality. Hence, it was prayed that the present

    petition be dismissed.

    5. A separate reply was filed by respondent

    No.3/informant admitting that an FIR was registered by

    respondent No.3/informant against the petitioner and other apple

    traders. It was asserted that the apple traders had defaulted in

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    paying the money to the informant, and he was left with no other

    option but to register the FIR. The petitioner remained absconded

    .

    for 2 years and did not join the investigation. Therefore, it was

    prayed that the present petition be dismissed.

    6. I have heard Mr S.C. Sharma, learned Senior Advocate

    of
    with M/s Jyotirmay Bhatt and Sushmit Bhatt, learned counsel for

    the petitioner, Mr Ajit Sharma, learned Deputy Advocate General
    rt
    for respondents No.1 and 2, and Mr Narender Singh Thakur,

    learned counsel, for respondent No.3.

    7. Mr S.C. Sharma, learned Senior Counsel for the

    petitioner, submitted that the allegations in the FIR do not

    disclose the commission of any offence. False allegations were

    made against him. The contents of the FIR, even if accepted to be

    correct, do not constitute the commission of any cognizable

    offence. Therefore, he prayed that the present petition be allowed

    and the FIR be quashed. He relied upon the judgments of Kunti

    and another vs. State of Uttar Pradesh and another (2023) 6 SCC 109,

    Sarabjit Kaur vs. State of Punjab and another 2023 STPL 3358 SC,

    Rikhab Birani and Anr versus State of Uttar Pradesh and Anr 2025

    INSC 512 in support of his submission.

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    8. Mr Ajit Sharma, learned Deputy Advocate General for

    the respondents No.1 and 2/State submitted that the petitioner

    .

    had taken the apples from the informant after promising to pay

    the money to him. However, he failed to do so, which shows that

    his intention was fraudulent to begin with. The investigation is

    complete, and the charge sheet is to be filed before this Court.

    of
    This Court should not exercise the extraordinary jurisdiction

    vested in it under Section 528 of BNSS. Hence, he prayed that the
    rt
    present petition be dismissed.

    9. Mr Narender Singh Thakur, learned counsel for

    respondent No.3, adopted the submissions of Mr Ajit Sharma,

    learned Deputy Advocate General for respondents No.1 and 2 and

    prayed that the present petition be dismissed.

    10. I have given considerable thought to the submissions

    made at the bar and have gone through the records carefully.

    11. The law relating to quashing of FIR was explained by

    the Hon’ble Supreme Court in B.N. John v. State of U.P., 2025 SCC

    OnLine SC 7 as under: –

    “7. As far as the quashing of criminal cases is concerned, it
    is now more or less well settled as regards the principles to
    be applied by the court. In this regard, one may refer to the

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    decision of this Court in State of Haryana v. Ch. Bhajan Lal,
    1992 Supp (1) SCC 335, wherein this Court has summarised
    some of the principles under which

    .

    FIR/complaints/criminal cases could be quashed in the

    following words:

    “102. In the backdrop of the interpretation of the
    various relevant provisions of the Code under Chapter

    XIV and of the principles of law enunciated by this Court
    in a series of decisions relating to the exercise of the
    extraordinary power under Article 226 or the inherent

    of
    powers under Section 482 of the Code which we have
    extracted and reproduced above, we give the following
    categories of cases by way of illustration wherein such
    power could be exercised either to prevent abuse of the
    rt
    process of any court or otherwise to secure the ends of
    justice, though it may not be possible to lay down any

    precise, clearly defined and sufficiently channelised and
    inflexible guidelines or rigid formulae and to give an
    exhaustive list of myriad kinds of cases wherein such
    power should be exercised.

    (1) Where the allegations made in the first
    information report or the complaint, even if they are

    taken at their face value and accepted in their
    entirety, do not prima facie constitute any offence or

    make out a case against the accused.

    (2) Where the allegations in the first information
    report and other materials, if any, accompanying

    the FIR do not disclose a cognizable offence,
    justifying an investigation by police officers
    under Section 156(1) of the Code, except under an
    order of a Magistrate within the purview of
    Section 155(2) of the Code.

    (3) Where the uncontroverted allegations made in
    the FIR or complaint and the evidence collected in
    support of the same do not disclose the
    commission of any offence and make out a case
    against the accused.

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    (4) Where the allegations in the FIR do not constitute
    a cognizable offence but constitute only a non-
    cognizable offence, no investigation is permitted by a

    .

    police officer without an order of a Magistrate as

    contemplated under Section 155(2) of the Code.
    (5) Where the allegations made in the FIR or
    complaint are so absurd and inherently

    improbable based on which no prudent person
    can ever reach a just conclusion that there is
    sufficient ground for proceeding against the

    of
    accused.

    (6) Where there is an express legal bar engrafted in
    rt any of the provisions of the Code or the concerned Act
    (under which a criminal proceeding is instituted) to
    the institution and continuance of the proceedings,
    and/or where there is a specific provision in the Code

    or the concerned Act, providing efficacious redress for
    the grievance of the aggrieved party.
    (7) Where a criminal proceeding is manifestly

    attended with mala fide and/or where the
    proceeding is maliciously instituted with an
    ulterior motive for wreaking vengeance on the

    accused and with a view to spite him due to a
    private and personal grudge.” (emphasis added)

    8. Of the aforesaid criteria, clause no. (1), (4), and (6)
    would be of relevance to us in this case.

    In clause (1), it has been mentioned that where the
    allegations made in the first information report or the
    complaint, even if they are taken at their face value and
    accepted in their entirety, do not prima facie constitute any
    offence or make out a case against the accused, then the
    FIR or the complaint can be quashed.

    As per clause (4), where the allegations in the FIR do not
    constitute a cognizable offence but constitute only a non-
    cognizable offence, no investigation is permitted by a
    police officer without an order dated by the Magistrate as

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    contemplated under Section 155 (2) of the CrPC, and in
    such a situation, the FIR can be quashed.
    Similarly, as provided under clause (6), if there is an

    .

    express legal bar engrafted in any of the provisions of the

    CrPC or the concerned Act under which the criminal
    proceedings are instituted, such proceedings can be
    quashed.”

    12. This position was reiterated in Ajay Malik v. State of

    Uttarakhand, 2025 SCC OnLine SC 185, wherein it was observed:

    of
    “8. It is well established that a High Court, in exercising its
    extraordinary powers under Section 482 of the CrPC, may
    rt
    issue orders to prevent the abuse of court processes or to
    secure the ends of justice. These inherent powers are

    neither controlled nor limited by any other statutory
    provision. However, given the broad and profound nature
    of this authority, the High Court must exercise it sparingly.

    The conditions for invoking such powers are embedded

    within Section 482 of the CrPC itself, allowing the High
    Court to act only in cases of clear abuse of process or where
    intervention is essential to uphold the ends of justice.

    9. It is in this backdrop that this Court, over the course of
    several decades, has laid down the principles and

    guidelines that High Courts must follow before quashing
    criminal proceedings at the threshold, thereby pre-

    empting the Prosecution from building its case before the
    Trial Court. The grounds for quashing, inter alia,
    contemplate the following situations : (i) the criminal
    complaint has been filed with mala fides; (ii) the FIR
    represents an abuse of the legal process; (iii) no prima facie
    offence is made out; (iv) the dispute is civil in nature; (v.)
    the complaint contains vague and omnibus allegations;
    and (vi) the parties are willing to settle and compound the
    dispute amicably (State of Haryana v. Bhajan Lal, 1992 Supp
    (1) SCC 335)

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    13. The present petition is to be decided as per the

    parameters laid down by the Hon’ble Supreme Court.

    .

    14. The FIR was registered for the commission of an

    offence punishable under Section 420 of the IPC. The ingredients

    of cheating were explained by the Hon’ble Supreme Court in S.W.

    of
    Palanitkar v. State of Bihar
    , (2002) 1 SCC 241, as under:

    “10. The ingredients of an offence of cheating are: (i) there
    should be fraudulent or dishonest inducement of a person
    rt
    by deceiving him, (ii)(a) the person so deceived should be
    induced to deliver any property to any person or to consent

    that any person shall retain any property; or (b) the person
    so deceived should be intentionally induced to do or omit
    to do anything which he would not do or omit if he were

    not so deceived; and (iii) in cases covered by (ii)(b), the act
    of omission should be one which causes or is likely to cause
    damage or harm to the person induced in body, mind,

    reputation or property.

    11. One of us (D.P. Mohapatra, J.), speaking for the Bench,

    in HridayaRanjan Prasad Verma v. State of Bihar [(2000) 4
    SCC 168: 2000 SCC (Cri) 786] on facts of that case, has
    expressed thus: (SCC p. 177, para 15)

    “15. In determining the question, it has to be kept in
    mind that the distinction between mere breach of
    contract and the offence of cheating is a fine one. It
    depends upon the intention of the accused at the
    time of inducement, which may be judged by his
    subsequent conduct, but for this, subsequent
    conduct is not the sole test. Mere breach of contract
    cannot give rise to criminal prosecution for cheating
    unless fraudulent or dishonest intention is shown
    right at the beginning of the transaction, that is, the

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    time when the offence is said to have been
    committed. Therefore, it is the intention which is the
    gist of the offence. To hold a person guilty of cheating,

    .

    it is necessary to show that he had a fraudulent or

    dishonest intention at the time of making the promise.
    From his mere failure to keep up a promise,
    subsequently, such a culpable intention right at the

    beginning, that is, when he made the promise, cannot be
    presumed.” (emphasis supplied)

    of

    12. Finding that the ingredients of the offence of cheating
    and its allied offences had not been made out, this Court
    interfered with the order of the High Court and quashed
    the criminal proceedings.

    rt

    13. In G.V. Rao v. L.H.V. Prasad [(2000) 3 SCC 693: 2000 SCC
    (Cri) 733], this Court in para 7 has stated thus: (SCC pp.

    696-97)

    “7. As mentioned above, Section 415 has two parts.
    While in the first part, the person must ‘dishonestly’

    or ‘fraudulently’ induce the complainant to deliver
    any property; in the second part, the person should
    intentionally induce the complainant to do or omit to

    do a thing. That is to say, in the first part,
    inducement must be dishonest or fraudulent. In the

    second part, the inducement should be intentional.

    As observed by this Court in

    JaswantraiManilalAkhaney v. State of Bombay [AIR
    1956 SC 575: 1956 Cri LJ 1116], a guilty intention is an
    essential ingredient of the offence of cheating. In
    order, therefore, to secure the conviction of a person
    for the offence of cheating, ‘mens rea’ on the part of
    that person must be established. It was also observed
    in Mahadeo Prasad v. State of W.B. [AIR 1954 SC 724:

    1954 Cri LJ 1806] that in order to constitute the offence
    of cheating, the intention to deceive should be in
    existence at the time when the inducement was
    offered.” (emphasis supplied)

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    14. In Trisuns Chemical Industry v. Rajesh Agarwal [(1999) 8
    SCC 686: 2000 SCC (Cri) 47] dealing with the effect of
    existence of arbitration clause in the agreement on

    .

    criminal prosecution on the ground that civil proceedings

    are also maintainable, this Court has held that quashing of
    FIR or a complaint exercising power under Section 482
    CrPC should be limited to a very extreme exception; merely

    because an act has a civil profile is not enough to stop
    action on the criminal side. It is further held that a
    provision made in the agreement for referring the disputes

    of
    to arbitration is not an effective substitute for a criminal
    prosecution when the disputed act constitutes a criminal
    offence.

    15.
    rt
    A similar view was taken in G.V. Rao v. L.H.V. Prasad,

    (2000) 3 SCC 693, as under:

    “4. Cheating” is defined in Section 415 of the Penal Code,
    1860, which provides as under:

    “415. Cheating.–Whoever, by deceiving any person,
    fraudulently or dishonestly induces the person so

    deceived to deliver any property to any person, or to
    consent that any person shall retain any property, or

    intentionally induces the person so deceived to do or
    omit to do anything which he would not do or omit if
    he were not so deceived, and which act or omission

    causes or is likely to cause damage or harm to that
    person in body, mind, reputation or property, is said
    to ‘cheat’.

    Explanation.–A dishonest concealment of facts is a
    deception within the meaning of this section.”

    5. The High Court quashed the proceedings principally on
    the ground that Chapter XVII of the Penal Code, 1860, deals
    with the offences against properties and, therefore, Section
    415
    must also necessarily relate to the property which, in
    the instant case, is not involved and, consequently, the FIR

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    was liable to be quashed. The broad proposition on which
    the High Court proceeded is not correct. While the first part
    of the definition relates to property, the second part does

    .

    not necessarily relate to property. The second part is

    reproduced below:

    “415. … intentionally induces the person so deceived

    to do or omit to do anything which he would not do
    or omit if he were not so deceived, and which act or
    omission causes or is likely to cause damage or harm

    of
    to that person in body, mind, reputation or property,
    is said to ‘cheat’.”

    6. This part speaks of intentional deception which must be
    intended not only to induce the person deceived to do or
    rt
    omit to do something but also to cause damage or harm to
    that person in body, mind, reputation or property. The

    intentional deception presupposes the existence of a
    dominant motive of the person making the inducement.
    Such inducement should have led the person deceived or

    induced to do or omit to do anything which he would not
    have done or omitted to do if he were not deceived. The
    further requirement is that such an act or omission should

    have caused damage or harm to body, mind, reputation or
    property.

    7. As mentioned above, Section 415 has two parts. While in
    the first part, the person must “dishonestly” or

    “fraudulently” induce the complainant to deliver any
    property; in the second part, the person should
    intentionally induce the complainant to do or omit to do a
    thing. That is to say, in the first part, inducement must be
    dishonest or fraudulent. In the second part, the
    inducement should be intentional. As observed by this
    Court in Jaswantrai Manilal Akhaney v. State of Bombay [AIR
    1956 SC 575: 1956 Cri LJ 1116: 1956 SCR 483], a guilty
    intention is an essential ingredient of the offence of
    cheating. In order, therefore, to secure the conviction of a
    person for the offence of cheating, “mens rea” on the part

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    of that person must be established. It was also observed in
    Mahadeo Prasad v. State of W.B. [AIR 1954 SC 724: 1954 Cri LJ
    1806] that in order to constitute the offence of cheating,

    .

    the intention to deceive should be in existence at the time

    when the inducement was offered.

    8. Thus, so far as the second part of Section 415 is

    concerned, “property”, at no stage, is involved. Here, it is
    the doing of an act or omission to do an act by the
    complainant, as a result of intentional inducement by the

    of
    accused, which is material. Such inducement should result
    in the doing of an act or omission to do an act as a result of
    which the person concerned should have suffered or was
    likely to suffer damage or harm in body, mind, reputation
    rt
    or property. In an old decision of the Allahabad High Court
    in Empress v. Sheoram [(1882) 2 AWN 237], it was held by

    Mahmood, J.:

    “That to palm off a young woman as belonging to a
    caste different to the one to which she really belongs,

    with the object of obtaining money, amounts to the
    offence of cheating by personation as defined in
    Section 416 of the Penal Code, 1860, which must be

    read in the light of the preceding Section 415.”

    16. In the present case, there are no averments in the FIR

    that any representation was made by the petitioner to the

    informant, which led the informant to supply the apple to the

    petitioner. The informant’s simple case is that he had supplied

    the apple to the petitioner and other apple traders, and they had

    not made the payment to him. It was rightly submitted on behalf

    of the petitioner that this was a dispute regarding the payment of

    money and does not involve any criminality.

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    17. It was laid down by the Hon’ble Supreme Court in

    Anukul Singh v. State of U.P., 2025 SCC OnLine SC 2060, that

    .

    criminal proceedings cannot be used for enforcing civil rights. It

    was observed: –

    17. This Court has, in a long line of decisions, deprecated
    the tendency to convert civil disputes into criminal

    of
    proceedings. In Indian Oil Corporation v. NEPC India Ltd.

    (2006) 6 SCC 736, it was held that criminal law cannot be
    used as a tool to settle scores in commercial or contractual
    matters, and that such misuse amounts to abuse of process.

    rt
    xxxxx

    10. While on this issue, it is necessary to take notice

    of a growing tendency in business circles to convert
    purely civil disputes into criminal cases. This is
    obviously on account of a prevalent impression that
    civil law remedies are time-consuming and do not

    adequately protect the interests of lenders/creditors.
    Such a tendency is seen in several family disputes,
    also leading to an irretrievable breakdown of

    marriages/families. There is also an impression that
    if a person could somehow be entangled in a criminal

    prosecution, there is a likelihood of imminent
    settlement. Any effort to settle civil disputes and

    claims, which do not involve any criminal offence, by
    applying pressure through criminal prosecution
    should be deprecated and discouraged.”

    18. Similarly, in Inder Mohan Goswami v. State of Uttaranchal
    (2007) 12 SCC 1: AIR 2008 SC 251, it was emphasised that
    criminal prosecution must not be permitted as an
    instrument of harassment or private vendetta.
    In Ganga
    Dhar Kalita v. State of Assam
    (2015) 9 SCC 647, this Court
    again reiterated that criminal complaints in respect of
    property disputes of a civil nature, filed solely to harass the

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    accused or to exert pressure in civil litigation, constitute an
    abuse of process.

    19. Most recently, in Shailesh Kumar Singh @ Shailesh R.

    .

    Singh v. State of Uttar Pradesh 2025 INSC 869, this Court

    disapproved the practice of using criminal proceedings as a
    substitute for civil remedies, observing that money
    recovery cannot be enforced through criminal prosecution

    where the dispute is essentially civil. The Court cautioned
    High Courts not to direct settlements in such matters but to
    apply the settled principles in Bhajan Lal. The following

    of
    paragraphs are relevant in this context:

    “9. What we have been able to understand is that
    there is an oral agreement between the parties. The
    rt
    Respondent No. 4 might have parted with some
    money in accordance with the oral agreement, and it
    may be that the appellant, herein, owes a particular

    amount to be paid to the Respondent No. 4. However,
    the question is whether, prima facie, any offence of
    cheating could be said to have been committed by the

    appellant.

    10. How many times are the High Courts to be
    reminded that to constitute an offence of cheating,

    there has to be something more than prima facie on
    record to indicate that the intention of the accused

    was to cheat the complainant right from the
    inception. The plain reading of the FIR does not
    disclose any element of criminality.

    11. The entire case is squarely covered by a recent
    pronouncement of this Court in the case of “Delhi
    Race Club (1940) Limited v. State of Uttar Pradesh
    “,
    (2024) 10 SCC 690. In the said decision, the entire law
    as to what constitutes cheating and criminal breach
    of trust, respectively, has been exhaustively
    explained. It appears that this very decision was
    relied upon by the learned counsel appearing for the
    petitioner before the High Court. However, instead of
    looking into the matter on its own merits, the High

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    Court thought fit to direct the petitioner to go for
    mediation and that too by making payment of Rs.

    25,00,000/- to the 4th respondent as a condition

    .

    precedent. We fail to understand why the High Court

    should undertake such an exercise. The High Court
    may either allow the petition, saying that no offence
    is disclosed or may reject the petition, saying that no

    case for quashing is made out. Why should the High
    Court attempt to help the complainant to recover the
    amount due and payable by the accused? It is for the

    of
    Civil Court or Commercial Court, as the case may be,
    to look into a suit that may be filed for recovery of
    money or in any other proceedings, be it under the
    Arbitration Act, 1996 or under the provisions of the
    rt
    IB Code, 2016.

    12. Why the High Court was not able to understand

    that the entire dispute between the parties is of a civil
    nature.

    13. We also enquired with the learned counsel

    appearing for the Respondent No. 4 whether his
    client has filed any civil suit or has initiated any other
    proceedings for recovery of the money. It appears

    that no civil suit has been filed for the recovery of
    money to date. Money cannot be recovered, more

    particularly, in a civil dispute between the parties by
    filing a First Information Report and seeking the help
    of the Police. This amounts to abuse of the process of

    law.

    14. We could have said many things, but we refrain
    from observing anything further. If the Respondent
    No. 4 has to recover a particular amount, he may file
    a civil suit or seek any other appropriate remedy
    available to him in law. He cannot be permitted to
    take recourse to criminal proceedings.

    15. We are quite disturbed by the manner in which the
    High Court has passed the impugned order. The High
    Court first directed the appellant to pay Rs.

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    17

    2026:HHC:6246

    25,00,000/- to the Respondent No. 4 and thereafter
    directed him to appear before the Mediation and
    Conciliation Centre for the purpose of settlement.

    .

    That’s not what is expected of a High Court to do in a

    Writ Petition filed under Article 226 of the
    Constitution or a miscellaneous application filed
    under Section 482 of the Criminal Procedure Code,

    1973, for quashing of FIR or any other criminal
    proceedings. What is expected of the High Court is to
    look into the averments and the allegations levelled

    of
    in the FIR, along with the other material on record, if
    any. The High Court seems to have forgotten the
    well-settled principles as enunciated in the decision
    of this Court in the “State of Haryana v. Bhajan Lal“,
    rt
    1992 Supp (1) SCC 335.

    18. In the present case, an attempt is being made to

    convert a civil dispute regarding the payment of money into a

    criminal case, which is impermissible.

    19. Hon’ble Supreme Court held in Kapil Agarwal vs.

    Sanjay Sharma, (2021) 5 SCC 524: 2021 SCC OnLine SC 154 that

    criminal proceedings cannot be permitted to become a weapon of

    harassment. It was observed:

    “18.1. As observed and held by this Court in a catena of
    decisions, inherent jurisdiction under Section 482 CrPC
    and/or under Article 226 of the Constitution is designed to
    achieve a salutary purpose that criminal proceedings ought
    not to be permitted to degenerate into weapons of
    harassment. When the Court is satisfied that criminal
    proceedings amount to an abuse of process of law or that it
    amounts to bringing pressure upon the accused, in the
    exercise of inherent powers, such proceedings can be
    quashed.”

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    2026:HHC:6246

    20. It was submitted that the petitioner had failed to pay

    the money to the informant, which shows that his intention was

    .

    fraudulent to begin with. This submission cannot be accepted. It

    was laid down by the Hon’ble Supreme Court in Satishchandra

    Ratanlal Shah v. State of Gujarat, (2019) 9 SCC 148 : (2019) 3 SCC

    (Cri) 697: 2019 SCC OnLine SC 196 that mere inability to return the

    of
    amount cannot give rise to a criminal prosecution for cheating

    unless fraudulent or dishonest intention is shown right at the
    rt
    beginning of the transaction, as it is this mens rea which is the

    crux of the offence. This position was reiterated in Ashok Kumar

    Jain v. State of Gujarat, 2025 SCC OnLine SC 998, and it was held

    that the fraudulent intention cannot be inferred by mere failure

    to honour the contract. A similar view was taken in Kunti (supra),

    Sarabjit Kaur (supra) and Rikhan Birani (supra). The informant

    has filed the party’s ledger (Annexure R-1), which shows that the

    money was being paid by the petitioner to the informant on

    various dates, and in the absence of any evidence regarding the

    fraudulent intention of the petitioner at the beginning, he cannot

    be held liable for cheating simply because he was unable to fulfil

    the terms and conditions of the contract.

    21. No other point was urged.

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    2026:HHC:6246

    22. In view of the above, the continuation of the

    proceedings qua the petitioner would amount to an abuse of the

    .

    process of the law. Hence, the present petition is allowed and FIR

    No. 64 of 2023, dated 31.3.2023, registered at Police Station

    Theog, District Shimla, H.P., for the commission of an offence

    punishable under Section 420 of IPC. is ordered to be quashed qua

    of
    the petitioner.

    23.
    rt
    Petition stands disposed of in the above terms, so also

    pending miscellaneous applications, if any.

    24. Parties are permitted to produce a copy of this

    judgment, downloaded from the webpage of the High Court of

    Himachal Pradesh, before the authorities concerned, and the said

    authorities shall not insist on the production of a certified copy,

    but if required, may verify passing of the order from the Website

    of the High Court.

    (Rakesh Kainthla)
    Judge
    9th March, 2026
    (Nikita)

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