AIROnline 2025 SC 204

Supreme Court Of India

(From : AIROnline 2022 Bom 1150)

Hon'ble Judge(s): Pamidighantam Sri Narasimha, Joymalya Bagchi , JJ

Criminal P.C. (2 of 1974) , S.482— Quashing of FIR - Prima facie case - Offence of cheating - Allegation that accused posing himself as reputed and trustworthy businessman purchased huge quantity of coal from complainant but failed to make payment for majority purchase - Between 2015 and 2017, accused and complainant were engaged in continuous business transaction wherein latter supplied coal under various invoices with a 15-day credit limit - Despite repeated breaches of credit limit and failure to pay by accused, complainant continued to supply coal, resulting in outstanding dues - Material collected during investigation, including statements from two bankers and a builder, showed that accused had substantial landed properties mortgaged to banks, had repaid loans regularly until 2016 and was even sanctioned an additional loan in 2018 - Same demonstrated that accused was a businessman of substance and no evidence suggested that he was bankrupt or had knowingly suppressed his financial situation - Mere failure to fulfill a promise to pay does not indicate dishonest intention, unless deception was present at outset of transaction - No evidence indicated that additional supplies were made or that complainant suffered a wrongful loss - Business losses and financial setbacks could not be clothed with culpability to utilize process of criminal law to recover outstanding dues - FIR and criminal proceedin....