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1. By   this   common   order   I   shall   dispose   of   the   two revision petitions of applicants/revisionists.

2. The   revisionists  have  challenged the  impugned order dated 23/03/2013 whereby Ld. Trial Court has taken cognizance of the offence punishable under Section 406420 and 120B IPC and issued summons to the revisionist.

3. The   grounds   raised   in   the   revision   petition   for impugning the order dated 23/03/2013 are; Ld. Trial Court has mechanically, without assigning any reason has taken cognizance. Ld. Trial Court has failed to properly examine and consider the documents filed alongwith the Chargesheet. The allegations do not constitute   Commission   of   any   offence   under   IPC   and   at   best constitute   breach   of   contract,   the   remedy   whereof   is   damages through   Civil   proceedings.   Cognizance   of   both   the   offences   i.e. under   Section   406   IPC   and   420   IPC   cannot   be   taken simultaneously being mutually exclusive and held to be anti­thesis of each other. The disputes between the parties are commercial in nature   and   no   criminal   liability   can   be   fastened   upon   the revisionist besides other grounds.

15. Before   examining   respective   contentions   on   their relative merits, I think it is appropriate to notice the legal position. Every breach of trust may not result in a penal offence of criminal breach   of   trust   unless   there   is   evidence   of   a   mental   act   of fraudulent misappropriation. An act of breach of trust involves a civil wrong in respect of which the persons wronged may seek his redress for damages in a civil court but a breach of trust with mens rea gives rise to a criminal prosecution as well. Before referring to the   submissions   of   the   parties   it   is   expedient   to   refer   to   the definition   of   "Cheating"   and   "Breach   of   Trust"   as   defined   in Section   405   &   415   of   the   IPC   punishable   u/s   406   &   420   IPC respectively:­

27. Section 406 Indian Penal Code prescribes punishment for criminal breach of trust as defined in Section 405 Indian Penal Code. For the offence punishable Under Section 406 Indian Penal Code, prosecution must prove: (i) that the accused was entrusted with   property   or   with   dominion   over   it   and   (ii)   that   he   (a) misappropriated it, or (b) converted it to his own use, or (c) used it, or (d) disposed of it.

28. Criminal breach of trust is defined in Section 405 IPC and  it   is  made   punishable  under  Section  406 IPC.  For  invoking these provisions, complainant has to show that he had entrusted the   accused   persons   with   property   or,   had   given   them   any dominion over his property and the accused persons dishonestly misappropriated or converted the said property to their own use or, dishonestly disposed of the said property. 

34. The   ingredients   of   offences   u/s   406   IPC   are   quite different   from   the   ingredients u/s 420 IPC.  A person  cannot  be charged with the offence of cheating and criminal breach of trust simultaneously   for   the   same   transaction.  No   person   can   be penalized   for   commission   of   both   the   offences.   Inasmuch   as   an offence u/s 406 IPC, provides for punishment for criminal breach of   trust,   where   a   person   is   either   entrusted   with   a   property   or acquires dominion over the property and he misappropriates the same   dishonestly   or   converts   the   same   for   his   own   use   or dishonestly uses or disposes of that property. In criminal breach of trust, person comes into possession of a property honestly, but he develops dishonest intention subsequent to his acquiring dominion over the property by way of entrustment or otherwise.   Whereas section 420 IPC provided punishment for commission of an offence of cheating. Cheating is defined in Section 415 IPC, which provides that,   the   person,   in   a   case   of   cheating,   acts   with   dishonest intention   right   from   the   commencement   of   the   transaction,   the person   acted   dishonestly,   which   means   that   the   intention   of making either wrongful gain or wrongful loss to a person deceived. In  Wolfgang   Reim   &   Ors.   vs.   State   &   Anr.  2012(3)JCC2042, Hon'ble High Court of Delhi held as under;