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Non-execution of sale deed is civil wrong hence criminal proceedings disallowed: Supreme Court

Case Law Details

TaxGuru Citation
2024 taxguru.in 4296
Case Name
Radheyshyam & Ors. Vs State of Rajasthan & Anr. (Supreme Court of India)
Date of Judgement/Order
Only available for paid members
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Radheyshyam & Ors. Vs State Of Rajasthan & Anr. (Supreme Court of India)

Supreme Court held that non-execution of sale deed is a civil wrong and a civil wrong cannot be given a criminal colour merely to coerce the appellants into registering the sale. Thus, criminal proceeding not allowed to be continued.

Facts- Respondent no.2 and the appellants entered into an Agreement to Sell dated 29.06.2020 with respect to sale of Swami Towers, Shitla Bazar, Rajgarh for a total sale consideration of Rs.5,11,00,000/- (Rupees five crore eleven lakhs only) and an advance payment of Rs.11 lakhs i.e. Rs.5 lakhs in cash and Rs.6 lakhs by way of a cheque was made at the time of Agreement to Sell. Further respondent no.2 agreed to make the payment of Rs.1 crore by 30th September, 2020 and the balance amount of Rs.4 crores in the next fifteen months beginning 30th September, 2020, as per his convenience. The entire payment was to be made within 18 months from the date of execution of the Agreement to Sell.

It appears that the sale was not executed. Respondent no.2 filed an FIR on 24.05.2022. By the impugned judgment and order dated 27.09.2023 the High Court of Judicature for Rajasthan at Jodhpur has declined to quash the proceedings arising out of First Information Report 215 of 2022 u/s 420 and 406 of the Indian Penal Code, 1860 registered at Police Station Rajgarh, district Churu, Rajasthan and, accordingly, dismissed the petition u/s 482 of the Code of Criminal Procedure, 1973 filed by the appellants.

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