Created by Fuzzy Cloud

Patna High Court

Jai Prakash @ Sri Jai Prakash Jee @ Jai Prakash KushwahaversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The court granted interim protection and directed mediation, ordering pre‑arrest bail on such terms and conditions as the District Court may deem fit.

Summary

The petitioner, Jai Prakash, applied for pre‑arrest bail in a case registered under Sections 406 and 420 of the IPC and Section 138 of the Negotiable Instruments Act, alleging that a cheque of Rs.2.5 lakh issued by him was dishonoured. The prosecution alleged that the petitioner had obtained the cheque by purchasing chicken chicks and then failed to pay, causing loss to the informant. Both parties expressed willingness to settle the dispute through mediation and agreed to appear before the District Court. The High Court, citing Supreme Court precedents on the distinction between criminal breach of trust and cheating and the need to prevent abuse of process, directed that the matter be referred to the District Mediation Centre and granted interim protection to the petitioner, ordering pre‑arrest bail on conditions set by the District Court. The application was disposed with directions for mediation and conditional bail.

Issues considered

  • Whether the petitioner is entitled to pre‑arrest bail for offences under Sections 406, 420 IPC and Section 138 NI Act.
  • Whether the dispute is essentially civil in nature and should be resolved through mediation rather than criminal prosecution.
  • Whether the High Court may exercise its inherent powers under Section 482 CrPC to stay criminal proceedings in favor of settlement.

Legislation cited

Subjects

  • pre‑arrest bail
  • cheque bounce
  • criminal breach of trust
  • cheating
  • mediation
  • civil dispute
  • Section 406 IPC
  • Section 420 IPC
  • Section 138 NI Act
  • Section 482 CrPC

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                              CRIMINAL MISCELLANEOUS No.75537 of 2025
                      Arising Out of PS. Case No.-171 Year-2018 Thana- RAMGARHWA District- East
                                                       Champaran
                 ======================================================
                 Jai Prakash @ Sri Jai Prakash Jee @ Jai Prakash Kushwaha S/o Manager
                 Prasad R/o Village- Gariba, P.O.- Gariba, P.S.- Kalyanpur, District- East
                 Champaran

                                                                                 ... ... Petitioner/s
                                                       Versus
           1.    The State of Bihar
           2.    Tarik Ahmed son of late Mumtaj Ahmed Resident of village, po, and Ps-
                 Ramgadhwa, Dist- East Champaran

                                                        ... ... Opposite Party/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s     :      Mr.Krishna Kant Singh, Advocate.
                 For the Opposite Party/s :      Mr.Harendra Prasad, APP.
                 For O.P. No.2            :      Mr. Prateek Tandon, Advocate.
                                                 Mr. Rohit Ranjan, Advocate.
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE PURNENDU SINGH
                                       ORAL ORDER

4   24-06-2026                    Heard learned counsel appearing on behalf of the

                   petitioner; learned APP for the State and learned counsel for the

                   O.P. No.2.

                                2. The petitioner seeks pre-arrest bail in connection

                   with Ramgarhwa P.S. Case No. 171 of 2018 registered for the

                   offence punishable under Sections 406 and 420 of the Indian

                   Penal Code and Section 138 of N.I. Act.

                                3.    Prosecution case, in brief, is that after purchasing

                   chicken chicks from the informant, the petitioner issued a

                   cheque of Rs. 2,50,000/- towards payment, which was

                   dishonoured due to insufficient funds, and despite repeated
Patna High Court CR. MISC. No.75537 of 2025(4) dt.24-06-2026
                                            2/7




          demands, failed to clear the outstanding amount, thereby

          causing financial loss to the informant and leading to the

          institution of the case.

                       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 and for amicable settlement of dispute between the

          parties outside the Court, the matter be referred for mediation.

                       5. Learned counsel appearing on behalf of O.P. No. 2

          and learned APP appearing on behalf of the State jointly

          submitted that a chance be given to the parties for amicable

          settlement outside the court.

                       6. Learned counsel appearing on behalf of the parties,

          on instructions, submitted that the parties have agreed to appear

          before the learned District Court at 10:30 A.M. on or before

          14.07.2026.

                       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 F.I.R., I am of the opinion that an opportunity is

          required to be given to the parties to settle their score amicably
Patna High Court CR. MISC. No.75537 of 2025(4) dt.24-06-2026
                                            3/7




          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

          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,
Patna High Court CR. MISC. No.75537 of 2025(4) dt.24-06-2026
                                            4/7




          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:
                                        (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
Patna High Court CR. MISC. No.75537 of 2025(4) dt.24-06-2026
                                            5/7




                          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. Both the parties have willingly desired to appear

          before the learned District Court on or before 14.07.2026, so

          that the matter can be referred to the District Mediation Centre.

                       13. 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”.

                       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
Patna High Court CR. MISC. No.75537 of 2025(4) dt.24-06-2026
                                            6/7




          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.

                       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 or before 14.07.2026 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 O.P. No.2

          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,
          Patna High Court CR. MISC. No.75537 of 2025(4) dt.24-06-2026
                                                      7/7




                    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.

                                 21. 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


Continue reading with your account

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

Sign in to read

Checking your session…

Lawyer court records for this case

Associated through the court’s case reference.

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