Criminal proceedings quashed where pure civil property disputes are given a criminal color.

The petitioners (a son, mother, and wife) challenged three separate orders dated 14.09.2023 taking cognizance in Complaint Case Nos. 215/2021, 214/2021, and 216/2021

The cases originated from a property transaction where Petitioner No. 2 allegedly agreed to sell a house to the complainant for Rs. 45 lakhs. The complainant alleged that after receiving payments, the petitioners failed to execute the sale deed and issued six cheques for refund, which were subsequently dishonored or stopped

The petitioners argued the dispute was purely civil and commercial in nature and that the multiple filings constituted an abuse of process

1. Whether the criminal proceedings in Complaint Case Nos. 215, 214, and 216 of 2021 should be quashed on the ground that the dispute is civil in nature and the multiple filings constitute an abuse of the court's process

Section 482 of the Code of Criminal Procedure regarding the inherent powers of the High Court to prevent abuse of the process of any court and to secure the ends of justice

Section 138 of the Negotiable Instruments Act, 1881, which governs the criminal liability for the dishonor of cheques issued for the discharge of a debt or liability

The court relied on the principle that while commercial transactions may involve criminal elements like cheating or forgery, the initiation of multiple criminal cases for the same underlying transaction can be seen as an undue exertion of pressure

The court examined the submission that the dispute arose from a failed property transaction, which is essentially a civil matter

A critical factor in the court's reasoning was the admission by the counsel for Opposite Party No. 2 (the complainant) that three separate complaints were filed due to "lack of proper communication." The complainant expressly stated he had no objection to the quashing of two out of the three cases

The court found that the continuation of all three proceedings regarding the same set of circumstances would be redundant and an abuse of process. However, it determined that one proceeding under Section 138 of the N.I. Act (Case No. 214 of 2021) should persist to address the legal consequences of the dishonored cheques

It dismissed the prayer for quashing in Cr. Misc. No. 86018 of 2023, directing that the prosecution in Complaint Case No. 214 of 2021 under Section 138 of the N.I. Act shall continue