Breach Of Contract Alone Not Cheating, Observes HC The Nagpur bench of the Bombay High Court recently dismissed a cheating case involving a 5 crore rupees pharmacy investment dispute, ruling that a breach of contract alone does not constitute a criminal offense unless fraudulent or dishonest intentions are evident from the outset. Justice Vrushali Joshi overturned an FIR filed by Sitabuldi police against a city doctor, stating the dispute was fundamentally a civil matter already pending in a civil court. The case originated from a 2019 agreement where the respondent and associates invested over 5.14 crore rupees to operate a pharmacy at a hospital. The agreement promised monthly business revenues between 60 lakh and 90 lakh rupees, with the hospital owner entitled to an 18% revenue share. However, the complainant alleged financial losses, unmet assurances, and the opening of a parallel pharmacy, leading to the venture’s closure. The petitioner doctor, represented by senior counsel Sunil Manohar and others, argued the complainant defaulted on payments and breached contractual terms, prompting a civil suit for eviction, debt recovery, and damages filed in 2023, which remains unresolved. The court noted that an earlier complaint on the same issue had been closed by police, advising the parties to pursue civil remedies. Despite this, a subsequent complaint led to the FIR’s registration. Justice Joshi called this sequence “surprising,” describing the second FIR as an “arm-twisting tactic.” Citing Supreme Court precedents, the court emphasized that criminal proceedings cannot be misused for oblique purposes and should be quashed if conviction chances are “bleak” or if their continuation constitutes an abuse of process.#bombay_high_court #nagpur_bench #sunil_manohar #vrushali_joshi #sitabuldi_police
