https://www.taxtmi.com/caselaws?id=777029 A loan transaction does not by itself constitute criminal breach of trust unless entrustment and dishonest misappropriation or conversion are clearly shown. The advance here was a business loan, repayments had been serviced for a substantial period, and the record did not disclose dishonest misappropriation of the borrowed money; the ingredients of Section 405 IPC were therefore not made out. In a commercial dispute, a preliminary inquiry before FIR registration is permissible, and an inquiry had already concluded that no cognizable offence was disclosed. As the matter was predominantly civil in nature, directing registration of an FIR was unwarranted and the order was set aside. en-us Tue, 12 Aug 2025 00:00:00 +0530 Sat, 23 Aug 2025 08:31:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=777029 A loan transaction does not by itself constitute criminal breach of trust unless entrustment and dishonest misappropriation or conversion are clearly shown. The advance here was a business loan, repayments had been serviced for a substantial period, and the record did not disclose dishonest misappropriation of the borrowed money; the ingredients of Section 405 IPC were therefore not made out. In a commercial dispute, a preliminary inquiry before FIR registration is permissible, and an inquiry had already concluded that no cognizable offence was disclosed. As the matter was predominantly civil in nature, directing registration of an FIR was unwarranted and the order was set aside. Case-Laws Indian Laws Tue, 12 Aug 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=777029