Karnataka High Court: Cheating Case Cannot Arise From Contractual Performance Dispute

The Karnataka High Court has clarified that cheating case cannot be filed for performance-related dispute arising from a valid contract.

The court emphasized that such conflicts are civil in nature and should be addressed in civil court, not through criminal prosecution.

Justice Sachin Shankar Magadum made this observation while quashing a cheating case. The court noted that the complaint itself showed partial performance of the contract, which negated the element of criminal intent.

The ruling reiterates that for a cheating charge under Section 420 of the IPC to be valid, there must be dishonest intention from the very beginning. A mere breach of contract does not amount to a criminal offence.

[Sailen Das v State By Kodigehalli Police Station]