The Calcutta High Court enunciated that for criminal breach of trust, a mere breach of agreement or contract will not suffice to give rise to a cause of action.
“It is a settled proposition of law that mere breach of agreement or contract does not give rise to a cause of action for criminal breach of trust, particularly in the present case when the parties have continuously transacted amongst themselves.”
A credit card was issued to the Petitioner with a credit limit of Rs. 12,294,960/-. All the relevant details such as identity, source of income and background check were done before issuing the credit card.
It was alleged that the Petitioner deceived the Opposite Party by creating an impression that he has the financial ability and means to repay the dues on time.
However, the dues remained unpaid and therefore, a complaint under Sections 420 and 406 of the Indian Penal Code, 1860 was preferred before the Metropolitan Magistrate, Calcutta. Hence, the present revision petition was filed by the Petitioner challenging the criminal proceedings arising out of the said complaint.
The Single Bench consisting of Hon’ble Justice Tirthankar Ghosh after carefully examining the complaint, opined that the present case is for recovery of the outstanding amount along with interest to the tune of Rs. 1 crore. However, no offence has been made under Sections 417 and 426 of the Indian Penal Code, 1860.It was enunciated that underneath the criminal proceedings, the real case is for the recovery of money and therefore, offences under the Indian Penal Code cannot be attracted.
Further, the Bench propounded that a mere breach of agreement or contract does not give rise to a justifiable cause of action in case of criminal breach of trust. This is more so when the parties are involved in continuous transactions, like the present one.
Case Title: Rishipal Ruhil v. Kotak Mahindra Bank Ltd.
Coram: Hon’ble Justice Tirthankar Ghosh
Case No.: C.R.R. 1810 of 2021
Advocates for Petitioner: Advs. Mr. Bharat Chugh, Ms. Priyanka Agarwal
Advocates for Opposite Party: Advs. Mr. A. Dutta, Mr. Z. Saltan
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(With input from news agency language)
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