Created by Fuzzy Cloud

Patna High Court

Suman JhaversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The High Court held that the parties should be given an opportunity to settle the dispute through mediation, granting interim protection to the petitioner and directing that pre‑arrest bail be decided by the district court on appropriate terms.

Summary

The petitioner, Suman Jha, applied for pre‑arrest bail in a complaint alleging cheating and criminal conspiracy (IPC §§420, 120(b)) arising from a disputed land sale. The complaint alleges that the petitioner sold land to the complainant but later sold the same land to another party and failed to return the consideration. Both parties expressed willingness to settle the matter amicably and requested that the dispute be referred to mediation. The High Court, citing Supreme Court precedents, held that where a civil dispute is cloaked in criminal allegations, the court should facilitate settlement and may grant interim protection pending mediation. Accordingly, the court directed the district court to refer the case to the District Mediation Centre, granted interim protection to the petitioner, and ordered that bail be decided by the district court on appropriate terms. The application was disposed with directions for mediation and conditional bail.

Issues considered

  • Whether pre‑arrest bail should be granted in a case involving alleged cheating and criminal conspiracy under IPC §§420 and 120(b).
  • Whether the dispute is essentially civil and should be referred to mediation rather than pursued as a criminal proceeding.
  • Whether the High Court can invoke its inherent powers under Section 482 CrPC to stay or quash criminal proceedings in such circumstances.
  • Whether interim protection should be provided to the petitioner pending mediation.

Legislation cited

Subjects

  • pre‑arrest bail
  • mediation
  • cheating
  • criminal breach of trust
  • IPC 420
  • IPC 120(b)
  • civil dispute
  • Section 482 CrPC
  • alternative dispute resolution

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                              CRIMINAL MISCELLANEOUS No.2857 of 2026
                    Arising Out of PS. Case No.-48 Year-2021 Thana- COMPLAINT CASE - BIRAUL AT
                                              BENIPUR District- Darbhanga
                 ======================================================
                 Suman Jha son of Late Jagannath Jha Resident of village-Bari P.S-Singhia
                 Dist- Samastipur

                                                                              ... ... Petitioner/s
                                                     Versus
           1.    The State of Bihar
           2.    Raj Kumar Mandal Son of Suresh Mandal Resident Of Village- Harani, Ps-
                 Kusheshwarasthan, Dist- Darbhanga

                                                        ... ... Opposite Party/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s     :     Mr.Girish Chandra Jha, Advocate
                 For OP No.2              :     Mr.Ashok Kumar Prasad, Advocate
                 For the Opposite Party/s :     Mr.Uday Pratap Singh, APP
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE PURNENDU SINGH
                                       ORAL ORDER

3   01-04-2026                     Heard learned counsel appearing on behalf of the

                   petitioner, learned counsel for OP No.2 and the learned APP for

                   the State.

                                2. The petitioner seek pre-arrest bail in connection

                   with Complaint P.S. Case No. 48 of 2021 registered for the

                   offence punishable under Sections 420 and 120(b) of the Indian

                   Penal Code.

                                3. As per the allegations made in the complaint

                   petition, the complainant and the petitioner entered into an

                   agreement for the sale of land measuring three kathas for a total

                   consideration of Rs. 5,76,000/- and a registered sale deed was

                   executed in pursuance thereof, however, when the complainant
Patna High Court CR. MISC. No.2857 of 2026(3) dt.01-04-2026
                                            2/7




          went to take possession of the said land, he discovered that the

          same land had already been sold to someone else. It is further

          alleged that the consideration amount has not been returned to

          the complainant.

                       4. Learned counsel appearing on behalf of the

          petitioner submitted that the petitioner is innocent and he has

          falsely been implicated in the case. He further submitted that the

          matter primarily relates to monetary transaction between the

          parties

                       5. Both the parties have jointly submitted that they

          shall settle their dispute amicably outside the court and he

          matter be referred for mediation.

                       6. Learned APP appearing on behalf of the State

          submitted that a chance be given to the parties for amicable

          settlement outside the court.

                       7. Learned counsels appearing on behalf of the

          respective parties, on instructions, submitted that the petitioner

          and the complainant are agreed to appear before the learned

          District Court at 10:30 A.M. on 15.04.2026.

                       8. Heard the parties

                       9. Having considered the rival submissions made on

          behalf of the parties, as well as, having perused the allegation
Patna High Court CR. MISC. No.2857 of 2026(3) dt.01-04-2026
                                            3/7




          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.

                       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
Patna High Court CR. MISC. No.2857 of 2026(3) dt.01-04-2026
                                            4/7




          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

          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:
Patna High Court CR. MISC. No.2857 of 2026(3) dt.01-04-2026
                                            5/7




                                        (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
                          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. The petitioner and the complainant have willingly

          desired to appear before the learned District Court on or before

          15.04.2026, 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”.
Patna High Court CR. MISC. No.2857 of 2026(3) dt.01-04-2026
                                            6/7




                       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

          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 15.04.2026 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 informant

          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
            Patna High Court CR. MISC. No.2857 of 2026(3) dt.01-04-2026
                                                        7/7




                      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

                      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)
chn/-

U       T


Continue reading with your account

Sign in to read the full judgment. It’s free.

Sign in to read

Checking your session…

For a signed copy suitable for filing, refer to the court's website.