The Court quashed private complaint proceedings filed under Sections 406 and 420 IPC, holding that a breach of loan agreement does not amount to a criminal offence, thus warranting quashing under Section 482 Cr.P.C.
The Criminal Original Petition was allowed; the case in C.C.No.1895 of 2008 was quashed.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED 11.11.2014
CORAM
THE HONOURABLE MR.JUSTICE S.NAGAMUTHU
Crl.OP No.10153 of 2008 and M.P.No.1 of 2008
G.N.Doss .. Petitioner
Vs
HDFC Bank Ltd., Rep. By its Officer Manager (Legal) P-Selvamani, D.Block No.108, First Main Road, Anna Nagar East, Chennai – 102. .. Respondent
Prayer:- Criminal Original Petition filed under Section 482 Cr.P.C., to call for the records in C.C.No.1895 of 2008 on the file of the learned X Metropolitan Magistrate, Egmore, Chennai and quash the proceedings therein.
For Petitioner :Mr.P.Premkumar For Respondent :No Appearance
ORDER
Seeking to quash the case in C.C.No.1895 of 2008 on the file of the learned X Metropolitan Magistrate, Egmore, Chennai, the petitioner has come up with this petition.
2.The petitioner is the accused in the said case and the respondent is the complainant. The respondent has filed the said private complaint alleging that the petitioner has committed an offence punishable under Section 406 & 420 I.P.C.
3.I have heard the learned counsel for the petitioner and I have also perused the records carefully. Despite service of notice, the respondent has not made appearance.
4.A perusal of the complaint would go to show that the petitioner had availed loan to the tune of Rs.8,00,000/- from the respondent Bank. But, he has not repaid the same as per the terms of the agreement. This, according to the respondent amounts to an offence punishable under Sections 406 & 420 I.P.C.
5.In my considered opinion, it is not so. Mere breach of agreement to repay the loan amount will not amount to any offence.
Thus, in my considered opinion, the institution of private complaint as against the petitioner herein is liable to be quashed.
6.In the result, the Criminal Original Petition is allowed and the case in C.C.No.1895 of 2008 on the file of the learned X Metropolitan Magistrate, Egmore, Chennai is quashed. Consequently, connected miscellaneous petition is closed.
-s/d-
Deputy Registrar(J)
Dt:20/11/2014
True Copy
Sub-Assitant Registrar
To
1.The X Metropolitan Magistrate,
Egmore, Chennai.
2.-do- thro' The Chief Metropolitan Magistrate,
Egmore, Chennai.
+ 1 cc to Mr.P.Premkumar, Advocate SR 53459
kk(co)
prk25/11
Crl.OP No.10153 of 2008
1 issue framed by the court
Whether mere breach of loan repayment agreement constitutes an offence punishable under Sections 406 and 420 IPC?
3 provisions across 2 enactments
G.N.Doss
HDFC Bank Ltd.
S.Nagamuthu
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
