Created by Fuzzy Cloud

Patna High Court

Md. Irshad Ahmad @ Irshad AhmadversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The High Court ordered that the parties be referred to mediation and granted conditional pre‑arrest bail, disposing of the application.

Summary

The petitioners, Md. Irshad Ahmad and Sonu Kumar, applied for pre‑arrest bail in a case (Raxaul PS Case No. 403 of 2025) alleging that a property transaction worth Rs. 1.61 crore turned into a dispute over non‑execution of a sale deed and non‑return of money. The prosecution alleged offences under Sections 318(4), 316(2), 352, 351(2) and 3(5) of the Bihar Negotiable Instruments Act, suggesting criminal breach of trust and cheating. Both parties expressed willingness to settle the matter amicably and requested the court to refer the dispute to mediation. The High Court, relying on Supreme Court precedents (Paramjeet Batra, S.N. Vijayalakshmi, etc.) and the limited scope of Section 482 CrPC, directed that the parties appear before the District Court and be referred to the District Mediation Centre, granting conditional pre‑arrest bail pending settlement. The court ordered that if the parties reconcile, the criminal cases be withdrawn; otherwise, the bail would continue subject to the District Court’s terms. The application was consequently disposed.

Issues considered

  • Whether the alleged offences constitute a genuine criminal case or a civil dispute disguised as a criminal matter.
  • Whether the High Court can exercise its inherent powers under Section 482 CrPC to stay coercive action and direct mediation.
  • Whether pre‑arrest bail should be granted conditionally pending settlement of the dispute.

Legislation cited

Subjects

  • pre‑arrest bail
  • mediation
  • civil dispute
  • criminal breach of trust
  • cheating
  • Section 482 CrPC
  • High Court jurisdiction
  • settlement

Judgment

                     IN THE HIGH COURT OF JUDICATURE AT PATNA
                              CRIMINAL MISCELLANEOUS No.7982 of 2026
                   Arising Out of PS. Case No.-403 Year-2025 Thana- RAXAUL District- East Champaran
                 ======================================================
                 Md. Irshad Ahmad @ Irshad Ahmad S/o Md. Jahur Miyan @ Jahur Ahmad @
                 Jaheer Miya R/o Chawal Bazar, Ward No. 21, P.S.- Raxaul, District- East
                 Champaran
                                                                         ... ... Petitioner/s
                                                Versus
                 The State of Bihar
                                                                  ... ... Opposite Party/s
                 ======================================================
                                                         with
                             CRIMINAL MISCELLANEOUS No. 91561 of 2025
                   Arising Out of PS. Case No.-403 Year-2025 Thana- RAXAUL District- East Champaran
                 ======================================================
                 Sonu Kumar S/o- Late Ramesh Prasad @ Ramesh Kumar Prasad R/V- Bank
                 Road Raxaul PS- Raxaul Dist- East Champaran
                                                                    ... ... Petitioner/s
                                                   Versus
           1.     The State of Bihar
           2.     Rishi Kumar Sah (Male) S/o Jay Prakash Prasad R/o Chawal Bazar, Ward
                  No. - 21, P.S. Raxaul District - East Champaran.
                                                                   ... ... Opposite Party/s
                 ======================================================
                 Appearance :
                 (In CRIMINAL MISCELLANEOUS No. 7982 of 2026)
                 For the Petitioner/s :  Mr. Anuj Kumar, Advocate
                 For the O.P. No. 2   :  Mr. Rakesh Kumar Singh, Advocate
                 For the State        :  Mr. Chandra Sen Prasad Singh, A.P.P.
                 (In CRIMINAL MISCELLANEOUS No. 91561 of 2025)
                 For the Petitioner/s :  Mr. Anuj Kumar, Advocate
                 For the O.P. No. 2   :  Mr. Rakesh Kumar Singh, Advocate
                 For the State        :  Mr. Chandra Sen Prasad Singh, A.P.P.
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE PURNENDU SINGH
                                       ORAL ORDER

4   01-07-2026                     Heard learned counsel appearing on behalf of the

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

                   O.P. No.2.

                               2. The petitioners seek pre-arrest bail in connection

                   with Raxaul P.S. Case No. 403 of 2025 registered for the

                   offence punishable under Sections 318(4), 316(2), 352, 351(2)
Patna High Court CR. MISC. No.7982 of 2026(4) dt.01-07-2026
                                            2/7




          and 3(5) of the BNS.

                       3. The prosecution case, in brief, is that the informant

          had agreed to purchase a residential house situated at Khata No.

          170, Khesra No. 1219, Jamabandi No. 1503, Ward No. 12,

          Raxaul for a total consideration of ₹1,61,00,000/-. The

          transaction was facilitated through co-accused Sonu Kumar,

          while the petitioner had allegedly introduced the informant to

          Sonu Kumar and participated in the negotiations. It is alleged

          that, on the assurance that the property would be registered in

          the informant's favour, substantial amounts were paid to Sonu

          Kumar and the petitioner on different dates. However, neither

          was the sale deed executed within the stipulated period nor was

          the money returned.

                       4. Mediation has failed, however, learned counsel

          appearing on behalf of the petitioners submitted that a chance be

          given to the parties. 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
Patna High Court CR. MISC. No.7982 of 2026(4) dt.01-07-2026
                                            3/7




          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

          17.07.2026.

                       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

          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
Patna High Court CR. MISC. No.7982 of 2026(4) dt.01-07-2026
                                            4/7




                                  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,

          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
Patna High Court CR. MISC. No.7982 of 2026(4) dt.01-07-2026
                                            5/7




                          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
                          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."
Patna High Court CR. MISC. No.7982 of 2026(4) dt.01-07-2026
                                            6/7




                       12. Both the parties have willingly desired to appear

          before the learned District Court on or before 17.07.2026, 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

          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 petitioners 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 petitioners are

          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 petitioners to

          appear on or before 17.07.2026 before the learned District Court

          or any date fixed by the learned Mediator, the interim protection
              Patna High Court CR. MISC. No.7982 of 2026(4) dt.01-07-2026
                                                          7/7




                        granted to the petitioners 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 petitioners 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,

                        petitioners are 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.

                                     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)
Niraj/-

U         T


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.