Supreme Court Quashes FIR in Failed JV Agreement, Says Civil Dispute Cannot be Given Criminal Colour

The Supreme Court quashed an FIR arising from a failed Joint Venture Agreement (JVA), holding that a purely contractual dispute cannot be converted into a criminal case.

The FIR alleged offences of cheating, forgery, and criminal breach of trust after the project did not materialise.

The Court observed that non-fulfilment of contractual obligations must be addressed through civil remedies unless dishonest intention exists from the inception.

Noting that the complaint was filed more than a decade after the agreement, the Court held that the continuation of criminal proceedings would amount to an abuse of process and set aside the Allahabad HC order.

[Vandana Jain & Ors v. State of UP]