Mehul Chinubhai Choksi vs State Of Gujarat & on 5 May, 2017
33 I may quote with profit a decision of the Supreme Court in the
case of Nageshwar Prasad Singh alias Sinha v. Narayan Singh, AIR
1999 SC 1480. In the said case, the allegation of the prosecution was
that an agreement was signed between the complainant respondent and
the appellant whereby some land was agreed to be sold by the appellant
to the complainant on a consideration, and allegedly a part thereof was
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R/SCR.A/4758/2015 CAV JUDGMENT
paid as earnest money, the balance being payable in the manner
indicated in the deed. The most important term in the deed was that the
possession of the plot would stand transferred to the complainant and
possession in fact was delivered to the complainant over which they
made certain constructions. The complaint was laid on the basis that the
appellant had cheated the complainant of the sum of money he had paid
as earnest money as his subsequent conduct reflected that he was not
willing to complete the bargain for which the complainant had to file a
suit for specific performance which was pending in the civil court. Held,
that latter part of illustration (g) to Section 415, I.P.C. illustrates that at
the time when agreement for sell was executed, it could have, in no
event, been termed dishonestly so as to hold that the complainant was
cheated of the earnest money, which they passed to the appellant as part
consideration and possession of the total amount involved in the bargain
was passed over to the complainant/respondent and which remained in
their possession. Now it is left to imagine who would be interested for
dealing the matter for completing the bargain when admittedly the
complainants have not performed their part in making the full payment.
The matter was, therefore, before the civil court in this respect. The
liability, if any, arising out by breaching thereof was civil in nature and
not criminal. Accordingly, the appeal was allowed and complaint
proceedings were quashed.