Criminal courts not for settling scores, civil disputes, says HC

Kolkata: Quashing criminal proceedings in what actually was a breach of loan agreement, Calcutta High Court observed that criminal courts are not meant to be used for settling scores or pressurising parties to settle the civil dispute.

The bench of Justice Ajoy Kumar Mukherjee was moved by the petitioners for quashing the criminal proceedings against them which arose as a result of a breach of loan agreement. Due to financial hardship caused by sudden Covid lockdown, the petitioners failed to repay the entire amount of the borrowed loan to the lender but paid a substantial portion of it in installments.

The petitioner’s counsel submitted that the magistrate failed to appreciate that the complainant (lender) lodged the complaint with a malafide intention and with intent to avail a short cut method for recovery of the outstanding loan amount, if any.

Complainant’s counsel submitted that the intent of cheating is evident from the conduct of the petitioners who became unreachable. It was prayed that the matter be allowed to go to trial. The court observed a mere breach of promise made through a loan agreement does not ipso facto constitute the criminal breach of trust. A breach of contract does not give rise to a criminal prosecution for cheating unless fraudulent or dishonest intention is shown right at the beginning of the transaction.

The court said the Magistrate failed to apply his mind in issuing summons from the facts and circumstances of the case.

The materials on record were not carefully scrutinised. Neither were the complainant and his witnesses questioned to find out whether any criminal case was prima facie made out against the petitioners.

“The entire idea of lodging the complaint seems to be to convert a civil dispute into criminal and put pressure on the petitioners for repayment of the amount allegedly advanced towards loan...criminal courts are not meant to be used for settling scores or pressurising parties to settle the civil dispute,” the court observed and quashed the criminal proceedings against the petitioners.