Patna High Court
Chandradeo Yadav @ Bahadur YadavversusThe State of Bihar
- Decided
- Disposal
- DISPOSED
- Bench
- PURNENDU SINGH
Holding
The court ordered interim protection and conditional pre‑arrest bail, directing the matter to be referred to mediation before any coercive action is taken.
Summary
Petitioner Chandradeo Yadav applied for pre‑arrest bail in a complaint alleging cheating, criminal breach of trust and criminal misappropriation (IPC §§420, 406, 409) arising from a failed sale deed transaction. He claims innocence and that the dispute is essentially a monetary civil matter, seeking resolution through mediation. Both parties consented to appear before the District Court on 17‑03‑2026 for mediation. The High Court, relying on Supreme Court precedents, held that where a criminal complaint masks a civil dispute, the court may refer the matter to mediation and grant interim protection. Accordingly, the court directed the District Court to refer the case to the Mediation Centre, granted conditional pre‑arrest bail, and disposed of the bail application.
Issues considered
- The appropriateness of granting pre‑arrest bail in a case involving alleged offences under IPC §§420, 406, 409.
- Whether the complaint, though framed as a criminal matter, is essentially a civil dispute amenable to mediation.
- Whether Section 482 of the CrPC can be invoked to quash or stay criminal proceedings in favour of a civil settlement.
Legislation cited
- Code of Criminal Procedure, 1973 — s. 482
- Indian Penal Code — s. 406, 409, 420
Subjects
- pre‑arrest bail
- mediation
- cheating
- criminal breach of trust
- civil dispute
- Section 482 CrPC
- IPC 420
- IPC 406
- settlement
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
CRIMINAL MISCELLANEOUS No.11997 of 2026
Arising Out of PS. Case No.-809 Year-2022 Thana- GAYA COMPLAINT CASE District-
Gaya
======================================================
Chandradeo Yadav @ Bahadur Yadav S/o Late Banwari Yadav R/o Village -
Kandi Nawada, P.S - Chandauti, District - Gaya
... ... Petitioner/s
Versus
1. The State of Bihar
2. Anil Kumar Sharma S/o Sri Bacha Prasad Sharma R/o Mohalla - Rang
Bahadur Road, Near - Purani Jailkhana, P.S - Kotwali, District - Gaya, Pin -
823001
... ... Opposite Party/s
======================================================
Appearance :
For the Petitioner/s : Mr.Sanjay Kumar Sharma, Advocate.
For the Opposite Party/s : Mr.Prem Kumar Jha, APP.
For O.P. No.2 : Mr. Vinod Kumar, Advocate.
======================================================
CORAM: HONOURABLE MR. JUSTICE PURNENDU SINGH
ORAL ORDER
2 12-03-2026 Heard learned counsel appearing on behalf of the
petitioner and learned APP for the State.
2. The petitioner seeks pre-arrest bail in connection
with Complaint Case No. 809 of 2022 registered for the offence
punishable under Sections 420, 406 and 409 of the Indian Penal
Code.
3. As per the allegation made in the complaint, the
complainant is said to have paid Rs.1,81,000/- to the petitioner
for execution of a sale deed in favour of the complainant, but
neither the sale deed was executed nor the amount paid to the
petitioner was returned to him.
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4. Learned counsel appearing on behalf of the
petitioner submits that the petitioner is innocent and he has
falsely been implicated in the case. He further submits that the
matter primarily relates to monetary transaction between the
parties and for amicable settlement of dispute between the
parties outside the Court, the matter be referred for mediation.
5. Learned APP appearing on behalf of the State and
learned counsel appearing on behalf of the O.P. No.2 jointly
submitted that a chance be given to the parties for amicable
settlement outside the court.
6. The petitioner’s counsel informs that he has
received instruction that the petitioner also wants to reconcile
the dispute by way of mediation.
7. Both the parties have agreed to appear before the
learned District Court at 10:30 A.M. on 17.03.2026 for
resolving the dispute by way of mediation.
8. Heard the parties
9. Having considered the rival submissions made on
behalf of the parties, as well as, having perused the allegation
made in the F.I.R., I am of the opinion that an opportunity is
required to be given to the parties to settle their score amicably
outside the Court.
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10. In this regard, I find it apt to take note of the
observation made by the Apex Court in case of Paramjeet
Batra v. State of Uttarakhand reported in (2013) 11 SCC 673,
in which, the Apex Court in paragraph no. 12 has held as
follows:
"12. While exercising its jurisdiction
under Section 482 of the Code the High Court has to
be cautious. This power is to be used sparingly and
only for the purpose of preventing abuse of the
process of any court or otherwise to secure ends of
justice. Whether a complaint discloses a criminal
offence or not depends upon the nature of facts
alleged therein. Whether essential ingredients of
criminal offence are present or not has to be judged
by the High Court. A complaint disclosing civil
transactions may also have a criminal texture. But
the High Court must see whether a dispute which is
essentially of a civil nature is given a cloak of
criminal offence. In such a situation, if a civil
remedy is available and is, in fact, adopted as has
happened in this case, the High Court should not
hesitate to quash the criminal proceedings to
prevent abuse of process of the court."
(emphasis supplied)
11. The Apex Court has reiterated the aforesaid
proposition in recent judgment of S. N. Vijayalakshmi & Ors.
vrs. The State of Karnataka and Anr. reported in (2025) SCC
Online SC 1575.
12. The Apex Court while considering the content of
ingredients of Sections 406 and 420 of the Indian Penal Code in
the case of Delhi Race Club (1940) Ltd. & Ors. vs. State of
Uttar Pradesh & Anr. in Criminal Appeal No. 3114 of 2024,
after discussing the earlier law laid down in several cases, has
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observed in paragraphs nos. 35, 36 and 37, inter alia as follows:
Difference between criminal breach of trust
and cheating
35. This Court in its decision in S.W.
Palanitkar v. State of Bihar S.W. Palanitkar v. State of
Bihar, (2002) 1 SCC 241 expounded the difference in the
ingredients required for constituting of an offence of
criminal breach of trust (Section 406 IPC) vis-à-vis the
offence of cheating (Section 420). The relevant observations
read as under :
“9. The ingredients in order to constitute a
criminal breach of trust are : (i) entrusting a person with
property or with any dominion over property; (ii) that
person entrusted : (a) dishonestly misappropriating or
converting that property to his own use; or (b) dishonestly
using or disposing of that property or wilfully suffering any
other person so to do in violation (i) of any direction of law
prescribing the mode in which such trust is to be
discharged, (ii) of any legal contract made, touching the
discharge of such trust.
10. The ingredients of an offence of cheating
are : (i) there should be fraudulent or dishonest inducement
of a person by deceiving him, (ii)(a) the person so deceived
should be induced to deliver any property to any person, or
to consent that any person shall retain any property; or (b)
the person so deceived should be intentionally induced to
do or omit to do anything which he would not do or omit if
he were not so deceived; and (iii) in cases covered by (ii)
(b), the act of omission should be one which causes or is
likely to cause damage or harm to the person induced in
body, mind, reputation or property.”
36. What can be discerned from the above is
that the offences of criminal breach of trust (Section 406
IPC) and cheating (Section 420 IPC) have specific
ingredients:
In order to constitute a criminal breach of
trust (Section 406 IPC)
(1) There must be entrustment with person for
property or dominion over the property, and
(2) The person entrusted:
(a) Dishonestly misappropriated or converted
property to his own use, or
(b) Dishonestly used or disposed of the
property or wilfully suffers any other person so to do in
violation of:
(i) Any direction of law prescribing the
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method in which the trust is discharged; or
(ii) Legal contract touching the discharge of
trust (see : S.W. Palanitkar [S.W. Palanitkar v. State of
Bihar, (2002) 1 SCC 241.
Similarly, in respect of an offence under
Section 420IPC, the essential ingredients are:
(1) Deception of any person, either by making
a false or misleading representation or by other action or
by omission;
(2) Fraudulently or dishonestly inducing any
person to deliver any property, or
(3) The consent that any person shall retain
any property and finally intentionally inducing that person
to do or omit to do anything which he would not do or omit
(see : Harmanpreet Singh Ahluwalia v. State of Punjab
[Harmanpreet Singh Ahluwalia v. State of Punjab, (2009) 7
SCC 712.
37. Further, in both the aforesaid sections,
mens rea i.e. intention to defraud or the dishonest intention
must be present, and in the case of cheating it must be there
from the very beginning or inception."
13. Both the parties have willingly desired to appear
before the learned District Court on or before 17.03.2026, so
that the matter can be referred to the District Mediation Centre.
14. Learned District Court is directed to take
necessary steps to refer the matter before the learned Mediator
of the District Mediation Center by fixing a date for appearance
of the parties to give effect to “Mediation for the Nation 2.0”.
15. Learned Mediator of the District Mediation Center
concerned, upon appearance of the parties, shall make his/her
best efforts to settle the dispute amicably and thereafter submit
his/her report before the concerned learned District Court, well
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within a period of three months, till then, no coercive action
shall be taken against the petitioner in connection with the
aforesaid case.
16. In case, the parties resolve their dispute amicably
or arrive at a mutual settlement, in light of the law laid down by
the Apex Court as referred hereinabove, the petitioner is
required to be released on pre-arrest bail on such terms and
conditions as the learned District Court deems it fit and proper.
17. In case of failure on the part of the petitioner to
appear on 17.03.2026 before the learned District Court or any
date fixed by the learned Mediator, the interim protection
granted to the petitioner shall automatically lose its force.
18. In case, it is deliberate on the part of the
complainant to reconcile, then in that case, the interim
protection granted to the petitioner shall continue and the trial
shall proceed in accordance with law.
19. In case, the parties fail to reconcile, then in that
case, parties may avail appropriate remedy. Then also, petitioner
is directed to be released on pre-arrest bail on such terms and
conditions as the learned District Court deems it fit and proper.
20. If both the parties arrive at amicable settlement,
then they must withdraw the criminal cases, if any, which they
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have lodged against each other.
21. With aforesaid direction and observation, the
present application stands disposed of.
22. Let a copy of this order be communicated to the
Member Secretary, Bihar State Legal Services Authority and the
Patna High Court Mediation Centre for the purpose of record.
(Purnendu Singh, J)
mantreshwar/-
U T
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