A. Code of Criminal Procedure, 1973 (2 of 1974), Section 482 -- Indian Penal Code, 1860 (45 of 1860), Section 406, 420 -- Cheating – Criminal breach of trust -- Sale of partnership property by accused -- Cheating – Inducement – Dishonest intention -- There is a clear absence of material on record to attribute any dishonest and fraudulent intention to the appellant-accused at the time of creation of partnership agreement -- No allegation in the complaint indicating either expressly or impliedly any intentional deception or fraudulent/dishonest intention on the part of the appellant-accused right from the time of formation of the partnership deed -- Mere allegations that the appellant-accused dishonestly induced the complainant to part with the property of the partnership firm and subsequently sold the property to a third party does not satisfy the test of dishonest inducement to deliver a property or part with a valuable security as enshrined under Section 420 of the IPC – Complainant failed to place any material on record to show us as to how he had entrusted the subject property to the appellant-accused -- Furthermore, the complaint also omits to aver as to how the property, so entrusted to the appellant-accused, was dishonestly misappropriated or converted for his own use, thereby committing a breach of trust – Complainant has an alternative remedy of filing a civil suit to set aside the sale deed and claim damages for the alleged violation of his contractual rights which he is already pursuing against the appellant-accused which is currently pending adjudication – Held, criminal law ought not to become a platform for initiation of vindictive proceedings to settle personal scores and vendettas – Appellant-accused could not be attributed any mens rea and therefore, the allegations levelled by the prosecution against the appellant-accused are unsustainable – Criminal complaint quashed.

(Para 20, 22, 24, 29)

B. Indian Penal Code, 1860 (45 of 1860), Section 406 -- Criminal breach of trust  -- Every act of breach of trust may not result in a penal offence unless there is evidence of a manipulating act of fraudulent misappropriation of a property entrusted to him -- In the case of criminal breach of trust, if a person comes into possession of the property and receives it legally, but illegally retains it or converts it to its own use against the terms of contract, then the question whether such retention is with dishonest intention or not and whether such retention involves criminal breach of trust or only civil liability would depend upon the facts and circumstances of the case.

(Para 21)

C. Indian Penal Code, 1860 (45 of 1860), Section 406, 420 -- Cheating – Criminal breach of trust – Cannot co-exist together -- In case of criminal breach of trust, the offender is lawfully entrusted with the property, and he dishonestly misappropriated the same -- Whereas, in case of cheating, the offender fraudulently or dishonestly induces a person by deceiving him to deliver a property -- In such a situation, both offences cannot co-exist simultaneously -- Consequently, the complaint cannot contain both the offences that are independent and distinct -- Said offences cannot coexist simultaneously in the same set of facts as they are antithetical to each other.

(Para 23)