18. 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 complainants on
a consideration, and allegedly a part thereof was paid as
earnest money, the balance being payable in the manner
indicated in the deed. The most important term in the deed
was that possession of the plot would stand transferred to the
complainants and possession in fact was delivered to the
complainants over which they made certain constructions. The
complaint was laid on the basis that the appellant had cheated
the complainants of the sum of money they had paid as
earnest money as his subsequent conduct reflected that he
Page 11 of 29
HC-NIC Page 11 of 29 Created On Sun Aug 13 17:28:57 IST 2017
R/CR.MA/7963/2016 JUDGMENT
was not willing to complete the bargain for which the
complainants 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
complainants were 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 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.
In B.Suresh Yadav v. Sharifa Bee & another, JT (2007) 12
SC 341, the Supreme Court again highlighted the distinction
between a mere breach of contract and the offence of
cheating.