THE HONOURABLE SRI JUSTICE A.GOPAL REDDY Crl.P.No.7153 of 2007 Date of Order: 10-12-2010 Between: Shaik Maqbool Ahmed ..Petitioner and 1. M/s.Talasila Estate (P) Ltd. And another ..Respondents The Court made the following Order: THE HONOURABLE SRI JUSTICE A.GOPAL REDDY Crl.P.No.7153 of 2007 Oral order: This petition under Section 482 Cr.P.C. is to quash the proceedings in C.C.No.904 of 2006 pending on the file of III Additional Chief Metropolitan Magistrate, Hyderabad who has taken the complaint on file for the offence punishable under Sections 420 and 406 IPC. The complaint allegations clearly go to show that the complainant entered into agreement with the accused for sale of Ac.19.29 gts. of land in Sy.No.135 situated in Vattinagulapally Village, Rajendranagar Mandal, Rangareddy District for a consideration of Rs.1,57,80,000/- on 22-09-2005 under a registered document bearing No.1457 of 2005 registered before the Joint Registrar, R.R.District. The accused delivered vacant possession to the complainant. The complainant paid Rs.22,00,000/- on the date of agreement and remaining amount has to be paid through post dated cheques. In all, Rs.46,00,000/- was received by the accused from the complainant towards part sale consideration as per the agreement. When the complainant started developing the land, some people claiming as owners of the said land interfered with the affairs of the complainant. The said persons by name B.V.Ramana Rao and Padmanabha Nayudu lodged a complaint with the police on which basis Cr.Nos.171 and 172 of 2005 were registered under Sections 147, 447, 507 r/w 149 IPC, Section 25(1)(a) Arms Act and Sections 4(1) and 5(d) of Land Grabbing Act against the officials of the complainant—Company; they obtained bail from the Court and gave telegraphic notice on 15-10-2005 to the accused not to present any cheques for encashment since there is a dispute with regard to title of the land followed by another notice dated 17-10-2005. In spite of the same, the accused presented some of the cheques for encashment but the complainant’s banker returned the same asking the accused to refer to the complainant. When the complainant was taking steps to resolve the dispute, the accused without the consent and knowledge of the complainant cancelled the agreement of sale-cum-General Power of Attorney and published the same in Deccan Chronicle dated 25-02- 2006. Hence the accused committed an offence under Sections 420 and 406 IPC. The registered Agreement of Sale-cum-General Power of Attorney discloses that if 14 cheques issued for various amounts have not been cleared of any month, the possession of total property goes to vendor i.e. accused—Mr. Shaik Maqbool Ahmed and his legal heirs and agreement of sale becomes null and void and the vendor also agreed to compound and compromise any litigation which arises in future. The complaint allegations clearly discloses when the cheques presented were dishonoured, accused rescinded/cancelled the agreement. If the compliant allegations taken on face value, it only give rise to civil dispute but cannot give rise to criminal action to proceed under Sections 420 and 406 IPC. The compliant allegations, referred to above, do not disclose fraudulent or dishonest intention of the accused at the inception and intentionally induced the complainant to deliver the property to attract Section 420 IPC. Since no property entrusted to the accused has been dishonestly misappropriated, and the complaint allegations shows cheques issued by the complainant have been presented for encashment and were not honoured, misappropriation of such property does not arise to attract Section 406 IPC. In view of the same, taking the complaint on file by the learned Magistrate for the offence punishable under Sections 420 and 406 IPC basing on the complaint allegations is nothing but abuse of process and liable to be quashed and accordingly quashed. The Criminal Petition is accordingly allowed. It is made clear that quashing the complaint would not disentitle the complainant to move the civil court for relief. _________________ A.GOPAL REDDY, J. 10-12-2010 Murthy