Cheating allegations in a property sale dispute failed where the dispute was held to be essentially contractual.

Allegations arising from an agreement to sell did not disclose cheating because the material showed receipt of earnest money, termination notice, a reply indicating novation of the contractual deadline, and steps taken by the seller to obtain the sanctioned plan and clear bank dues. The dispute was therefore treated as one concerning performance of contractual obligations, with no satisfactory basis to infer deception at the inception of the transaction. The criminal case was found to be an impermissible attempt to convert a civil dispute into a prosecution, so the proceedings against the petitioner were quashed for want of the ingredients of cheating, while the order dropping proceedings against the broker was affirmed.

---

---

Issues: Whether the allegations arising out of the agreement to sell disclosed the offence of cheating, or whether they constituted a predominantly civil dispute warranting quashing of the criminal proceedings.

Analysis: The material showed that earnest money had been received under the agreement, notice terminating the agreement had been served, the complainant's reply indicated that the contractual deadline had been novated, and the seller had obtained the sanctioned plan and cleared bank dues. The dispute was found to be essentially about performance of contractual obligations, with no satisfactory basis to infer deception at the inception of the transaction. The proceedings were also found to be an attempt to convert a civil dispute into a criminal case, which was impermissible where the ingredients of cheating were absent.

Conclusion: The criminal proceedings against the petitioner were quashed for want of the ingredients of cheating, while the order dropping proceedings against the broker was affirmed.

---