HON’BLE SRI JUSTICE SAMUDRALA GOVINDARAJULU CRIMINAL PETITION NO.4402 OF 2006 DATE:18.01.2010 Between: Thakkalapalli Srinivasa Rao and 2 others …….Petitioners And: The State of A.P., rep. by the Public Prosecutor, High Court of A.P., and another ……Respondents HON’BLE SRI JUSTICE SAMUDRALA GOVINDARAJULU CRIMINAL PETITION NO.4402 OF 2006 ORDER: This petition is filed by the accused 1 to 3 (A-1 to A-3) under Section 482 of the Code of Criminal Procedure for quashing proceedings in C.C.No.66 of 2003 on the file of Judicial Magistrate of the First Class, Huzurabad relating to offences punishable under Sections 420 and 506 I.P.C. The 2nd respondent is the complainant in the lower court. It is alleged that the 2nd respondent agreed to purchase Ac.5.10 guntas of lands at Metpally village, Keshavapatnam Mandal, Karimnagar District from A-1 and A-2 for total consideration of Rs.3,90,000/- and that the 2nd respondent paid earnest money/advance of Rs.1,00,000/- and agreed to pay balance of consideration and has been cultivating the lands and that subsequently A-1 and A-2 refused to receive balance of sale consideration from the 2nd respondent and demanded additional amount and that in mediation which took place on 03.01.2002, A-1 executed a written understanding promising to return advance paid by the complainant. It is further alleged that A-1 did not keep up his promise and on 24.09.2002 A-1 and A-2 denied receiving of any earnest money/advance amount at all and that all the accused threatened the complainant with dire consequences. It is stated that A-1 and A-2 sold away the same land to A-3. The prosecution alleges that A-1 to A-3 cheated the complainant and threatened him with dire consequences. It is contended by the petitioners’ counsel that mere failure to keep up promise cannot amount to cheating attracting offence punishable under Section 420 I.P.C. It is further contended that even as per F.I.R and charge sheet, there is no allegation that the accused had any dishonest intention from inception of the transaction; and in the absence of any such allegation, the offence under Section 420 I.P.C is not made out. Reliance was placed by the petitioners’ counsel on this aspect on Inder Mohan Goswami Vs. State of Uttaranchal[1], Dalip Kaur Vs. Jagnar Singh[2] and S.W. Palanitkar Vs. State of Bihar[3] of the Supreme Court. On perusal of material papers in this case, it is evident that the case is one which is purely of civil nature. Mere failure to abide by terms and conditions of sale agreement and failure to abide by terms of written understanding and refusal to pay back earnest money, cannot attract penal liability under Section 420 I.P.C. It is not the prosecution case that A-1 and A-2 had any such dishonest intention since prior to either execution of sale agreement or execution of written understanding. Thus, the petitioners could make out that there is no prima facie case against them for offence punishable under Section 420 I.P.C. In so far as offence punishable under Section 506 I.P.C is concerned, there is specific allegation that A-1 to A-3 having refused to return the earnest money, have further threatened the complainant with dire consequences. The said allegation prima facie attracts offence punishable under Section 506 I.P.C. Truth or otherwise of the said allegation has to be decided by the trial court after trial. In the result, the criminal petition is partly allowed quashing proceedings in C.C.No.66 of 2003 on the file of Judicial Magistrate of the First Class, Huzurabad in so far as offence punishable under Section 420 I.P.C is concerned; and the criminal petition is partly dismissed in so far as offence punishable under Section 506 I.P.C is concerned. The Magistrate will proceed with trial of the case against A-1 to A-3 for offence punishable under Section 506 I.P.C only. ___________________________________ SAMUDRALA GOVINDARAJULU,J Date:18.01.2010. Gk. HON’BLE SRI JUSTICE SAMUDRALA GOVINDARAJULU CRIMINAL PETITION NO.4402 OF 2006 DATE:18.01.2010. Gk. [1] AIR 2008 Supreme Court 251 [2] AIR 2009 Supreme Court 3191 [3] 2002 (1) Crimes 146 (SC)