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Patna High Court

Anoj KumarversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The High Court held that because the dispute is essentially civil, the parties must be given an opportunity to settle through mediation before any pre‑arrest bail is granted, and interim protection is conditioned on their appearance before the District Court.

Summary

The petitioner, Anoj Kumar, applied for pre‑arrest bail in a complaint alleging offences under Sections 380, 420, 406, 408, 467, 468, 471 and 504 IPC relating to alleged misappropriation of land documents and fraudulent loan. The State opposed the bail, while the petitioner claimed innocence and sought an amicable settlement. The Court observed that the dispute appears to be essentially civil, involving monetary transactions, and cited Supreme Court precedents emphasizing the need to prevent abuse of criminal process in such cases. Accordingly, the Court directed the petitioner to appear before the District Court and referred the matter to the District Mediation Centre, granting interim protection pending mediation. The application was disposed with directions that bail may be granted by the District Court if the parties reconcile, and that coercive action be stayed until then.

Issues considered

  • Whether pre‑arrest bail should be granted in a case involving alleged criminal breach of trust and cheating under the IPC.
  • Whether the dispute is essentially civil in nature and therefore amenable to mediation rather than criminal prosecution.
  • Whether the High Court can, under Section 482 CrPC, intervene to stay coercive action pending settlement.

Legislation cited

Subjects

  • pre‑arrest bail
  • criminal breach of trust
  • cheating
  • mediation
  • civil dispute
  • Section 482 CrPC
  • SARFAESI Act
  • Indian Penal Code
  • high court
  • bail conditions

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                              CRIMINAL MISCELLANEOUS No.62452 of 2025
                  Arising Out of PS. Case No.-2624 Year-2023 Thana- EAST CHAMPARAN COMPLAINT
                                                 District- East Champaran
                 ======================================================
                 Anoj Kumar S/o- Rajendra Singh Resident of Village - Matiariya Hata Tola,
                 P.S. - Harsidhi, District - East Champaran

                                                                            ... ... Petitioner/s
                                                   Versus
           1.    The State of Bihar
           2.    Bachchi Devi W/o- Chhotan Singh Moh- Sri Krishna Nagar (Gayatri Nagar)
                 Ps- Town Motihari Dist- East Champaran

                                                        ... ... Opposite Party/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s     :    Mr.Madhurendra Kumar, Advocate
                 For the Opposite Party/s :    Mr.Tapeshwar Sharma, APP
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE PURNENDU SINGH
                                       ORAL ORDER

5   11-02-2026                     Heard Mr. Madhurendra Kumar, learned counsel

                   appearing on behalf of the petitioner and Mr. Tapeshwar

                   Sharma, learned APP for the State.

                                2. The petitioner seeks pre-arrest bail in connection

                   with Complaint Case No. C-2624 of 2023 registered for the

                   offence(s) punishable under Sections 380, 420, 406, 408, 467,

                   468, 471, 504 of the Indian Penal Code.

                                3. Prosecution case, in brief, is that, the complainant

                   (aunt of the petitioner) filed Complaint Case No. 2624/2023

                   alleging that she purchased land in 1997 and built a three-storey

                   house where the petitioner and his family have been residing

                   since 2014 with her permission. The complainant alleges that
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          while she was mostly living in Patna, the petitioner took her

          land documents and passbook from her locker without her

          consent. It is further alleged that the petitioner along with other

          accused mortgaged her property documents to obtain a loan of

          ₹55,00,000 from Punjab National Bank in the name of “Nehal

          Poultry Farm,” which later became NPA. Complainant received

          notice under the SARFAESI Act and her house was sealed, and

          she had to pay ₹53,33,132, while the petitioner paid only a part

          amount. The complainant has also lodged FIR against the

          petitioner in connection with Motihari Town P.S. Case no.199 of

          2024.

                       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

          submitted that a chance be given to the parties for amicable

          settlement outside the court.

                       6. Learned counsel appearing on behalf of the

          petitioner, on instructions, submitted that the petitioner has
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          agreed to appear before the learned District Court at 10:30 A.M.

          on 18.02.2026.

                       7. Heard the parties

                       8. Having considered the rival submissions made on

          behalf of the parties, as well as, having perused the allegation

          made in the FIR, I am of the opinion that an opportunity is

          required to be given to the parties to settle their score amicably

          outside the Court.

                       9. 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)

                        10. The Apex Court has reiterated the aforesaid
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          proposition in recent judgment of S. N. Vijayalakshmi & Ors.

          vrs. The State of Karnataka and Anr. reported in (2025) SCC

          Online SC 1575.

                       11. 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

          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
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                          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
                          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."


                       12. The petitioner has willingly desired to appear

          before the learned District Court on or before 18.02.2026, so

          that the matter can be referred to the District Mediation Centre.
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                       13. Learned District Court is directed to take

          necessary steps to issue notices to the respective parties and

          upon their appearance, refer the matter before the learned

          Mediator of the District Mediation Center by fixing a date for

          appearance of the parties.

                       14. 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 four months, till then, no coercive action shall

          be taken against the petitioner in connection with the aforesaid

          case.

                       15. 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.

                       16. In case of failure on the part of the petitioner to

          appear on 18.02.2026 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.

                       17.     In case, it is deliberate on the part of the
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                     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.

                                  18. 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.

                                  19. If both the parties arrive at amicable settlement,

                     then they must withdraw the criminal cases, if any, which they

                     have lodged against each other.

                                  20.    With aforesaid direction and observation, the

                     present application stands disposed of.



                                               (Purnendu Singh, J)
Ashishsingh/-

U      T


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