Criminal Case Quashed for Lack of Entrustment: Why Loan Recovery Cannot Trigger Section 406 IPC

Satishchandra Ratanlal Shah Vs State of Gujarat And Another (Supreme Court of India) Civil Loan Default ≠ Criminal Offence — Mere Non-Repayment of Loan Does Not Attract Sections 406/420 IPC: Criminal Law Cannot Be Used to Recover Civil Debt: Supreme Court Quashes FIR Facts Complainant (Director of a money-lending company) gave a loan of Rs. 27 lakh to the Appellant (retired bank employee) in January 2008. Loan not repaid; complainant alleges threats when demanding repayment. FIR registered in 2012 under Sections 406, 409, 417, 420, 294(b), 506(2) IPC. A summary civil suit for loan recover...