Neutral Citation: 2024 INSC 626
Cause Title: DELHI RACE CLUB (1940) LTD VS. THE STATE OF UTTAR PRADESH
Case Number: CRIMINAL APPEAL NO. 3114 OF 2024
Judgment Date: August 23, 2024
Quorum/Bench: Hon'ble Justice J.B. Pardiwala, and Hon'ble Justice Manoj Misra
This appeal arises from the order passed by the High Court of Judicature at Allahabad dated 03.04.2024 in Application No. 15453 of 2023 filed by the appellant herein by which, the High Court rejected the same and thereby declined to quash and set aside the summoning order dated 28.02.2023 passed by the Additional Chief Judicial Magistrate, Khurja, Bulandshahar in Complaint Case No. 547 of 2021. The Supreme Court in its decision in S.W. Palanitkar & Ors. v. State of Bihar & Anr. reported in (2002) 1 SCC 241 expounded the difference in the ingredients required for constituting an of offence of criminal breach of trust (Section 406 IPC) viz-a-viz the offence of cheating (Section 420).
In order to constitute a criminal breach of trust (Section 406 IPC): -
1) There must be entrustment with person for property or dominion over the property, and
2) The person entrusted: -
a) dishonestly misappropriated or converted property to his own use, or
b) dishonestly used or disposed of the property or willfully suffers any other person so to do in violation of:
i. any direction of law prescribing the method in which the trust is discharged; or
ii. legal contract touching the discharge of trust (see: S.W.P. Palanitkar)
The Supreme Court recommended that all the police officers across the country be imparted proper training in law so as to understand the fine distinction between the offence of cheating viz-a-viz criminal breach of trust. Both offences are independent and distinct. The two offences cannot coexist simultaneously in the same set of facts.
They are antithetical to each other. The two provisions of the IPC (now BNS, 2023) are not twins in that they cannot survive without each other.
Decision of the Judgment
The Supreme Court held that the impugned order passed by the High Court is set aside so also the order passed Criminal Appeal No. 3114 of 2024 Page 31 of 31 by the Additional Chief Judicial Magistrate, Khurja, Bulandshahar taking cognizance upon the complaint.
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