Supreme Court Quashes FIR Alleging Cheating Over Disputed Property and Allows Appeal

A bench of Justices Abhay S. Oka and Ujjal Bhuyan heard an appeal by Jit Vinayak Arolkar challenging the High Court’s dismissal of his writ petition seeking quashing of an FIR registered at Pernem Police Station for offences under the Indian Penal Code, including allegations of cheating in relation to sale deeds over a disputed Goan property.

The Court allowed the appeal and set aside the High Court judgment dated 1 March 2023, quashing FIR No.177 of 2020 and proceedings therefrom only as against the appellant. The Court held that the ingredients of cheating were not made out against the appellant and that the complaint amounted to an abuse of process in the circumstances of the case. The Court, in its reasoning, observed: “In this case, it is impossible to understand how the appellant deceived the 4th respondent and how the act of execution of sale deeds by the appellant caused or was likely to cause damage or harm to the 4th respondent in body, mind, reputation or property. The appellant has not purported to execute the sale deeds on behalf of the 4th respondent. He has not purported to transfer the rights of the 4th respondent. There is no allegation that the appellant deceived the 4th respondent to transfer or deliver the subject property.” The Court further noted that the complainant’s conduct “amounts to nothing but abuse of the process of law.”

Background

The dispute concerned a parcel of land in Dhargalim Village, Pernem, Goa (described as CAPNIVORIL GUERA / KAPNI VARIL GHERA, Sy. No. 481/0), and originated when the 4th respondent filed twelve civil suits in October 2018 seeking a declaration of co-ownership and possession. The appellant, who executed sale deeds as constituted attorney for Vidhya Natekar and Sanjay Natekar and also appeared as confirming party, sold the rights of those vendors to third parties. On 23 October 2020 the constituted attorney of the 4th respondent lodged a complaint alleging sale of the property without consent of all legal heirs; the police registered the impugned FIR and the appellant obtained anticipatory bail on 10 February 2021.

The appellant contended that the dispute was essentially civil and that the offence of cheating under Section 415 IPC (and consequential provisions) was not made out; he relied on precedents including R.K. Vijayasarathy v Sudha Seetharam and Mohd. Ibrahim v State of Bihar to submit that a third party who is not the purchaser cannot ordinarily maintain a criminal complaint for cheating based on execution of a sale deed by another. The 4th respondent argued that the appellant dishonestly misappropriated the property and sold it with knowledge that the 4th respondent was a co-owner, and relied on M/s Neeharika Infrastructure Pvt. Ltd. to resist quashing at the initial stage.

The Supreme Court examined the sale deeds and the power of attorney, observed that the deeds transferred the rights of Vidhya and Sanjay Natekar to purchasers and that the appellant had not purported to transfer any rights of the 4th respondent. Applying the law in Mohd. Ibrahim and others, the Court found that the complaint did not demonstrate deception of the 4th respondent or fulfil the statutory ingredients of cheating. The Court also took note that the complaint was lodged two years after civil suits were begun and that the complainant had omitted to disclose the pendency of those suits, concluding that initiating criminal proceedings in those circumstances constituted an abuse of process. The Court clarified that it made no adjudication on the merits of the pending civil suits and limited relief exclusively to quashing proceedings against the appellant.

Case Details: Case No.: 2025 INSC 31 (Criminal Appeal No. 393 of 2024) Case Title: Jit Vinayak Arolkar v State of Goa & Ors. Appearances: For the Petitioner(s): Senior counsel for appellant (name not specified in the judgment text) For the Respondent(s): Counsel for the 4th respondent and for the State of Goa (names not specified in the judgment text)