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Patna High Court

Rajdeo BhagatversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The Court directed the parties to attempt mediation and granted interim pre‑arrest bail, conditioning its continuation on the outcome of the mediation process.

Summary

The petitioner, Rajdeo Bhagat, applied for pre‑arrest bail in a complaint alleging offences under IPC Sections 420, 406 and 506, arising from a dispute over a Rs 3.70 lakh loan. The complainant claimed the petitioner failed to return the money and threatened him. Both parties expressed a desire to settle the matter amicably through community mediation and agreed to appear before the District Court. The High Court, citing the Supreme Court’s guidance on civil disputes cloaked as criminal cases, directed that the parties be referred to the District Mediation Centre and granted interim pre‑arrest bail, subject to conditions and a timeline. The Court ordered that if mediation succeeds, the criminal case be withdrawn; if it fails, the bail will continue under terms set by the District Court. The application was consequently disposed.

Issues considered

  • Whether the criminal complaint, which primarily involves a monetary dispute, should be entertained as a criminal proceeding or referred to mediation.
  • Whether pre‑arrest bail can be granted pending mediation in a case involving alleged offences under Sections 420, 406 and 506 IPC.
  • Whether the High Court may exercise its inherent powers under Section 482 CrPC to stay or direct the conduct of the proceedings.

Legislation cited

Subjects

  • pre‑arrest bail
  • mediation
  • civil dispute
  • criminal breach of trust
  • cheating
  • Section 420 IPC
  • Section 406 IPC
  • Section 506 IPC
  • Section 482 CrPC
  • Mediation Act 2023
  • settlement

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                              CRIMINAL MISCELLANEOUS No.80550 of 2025
                 Arising Out of PS. Case No.-1969 Year-2023 Thana- SARAN COMPLAINT CASE District-
                                                          Saran
                 ======================================================
                 Rajdeo Bhagat Son of Late Amirkhan Bhagat @ American Bhagat @
                 Amirkan Bhagat Resident of Village- Ladaura Ps- Kudhani (Turki O.P), Dist-
                 Muzaffarpur

                                                                               ... ... Petitioner/s
                                                     Versus
           1.    The State of Bihar
           2.    Jivesh Kumar Son of Late Basant Lal Singh Resident of Village- Saidpur,
                 Po- Rahimpur, P.S.- Sonepur, Dist- Rampur

                                                        ... ... Opposite Party/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s     :     Mr.Ravindra Kumar, Advocate.
                 For the Opposite Party/s :     Mr.Abhay Kumar, APP.
                 For O.P. No.2            :     Mr. Sanjeev Kumar, Advocate.
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE PURNENDU SINGH
                                       ORAL ORDER

6   04-05-2026                       Heard learned counsel appearing on behalf of the

                   petitioner; learned counsel for the complainant and learned APP

                   for the State.

                                    2. The petitioner seeks pre-arrest bail in connection

                   with Complaint Case No. 1969/2023 registered for the offence

                   punishable under Sections 420, 406 and 506 of the Indian Penal

                   Code.

                                  3. As per the allegation made in the complaint, the

                   complainant is said to have paid a sum of Rs. 3,70,000/- to the

                   petitioner, partly in cash and partly through a bank account,

                   towards a loan. Subsequently, when the complainant requested
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          the petitioner to return the same, the petitioner allegedly failed

          to do so and instead abused the complainant and threatened to

          kill him.

                       4. Mr. Ravindra Kumar, learned counsel appearing on

          behalf of the petitioner and Mr. Sanjeev Kumar, learned counsel

          appearing on behalf of the complainant jointly informs this

          Court that the Mediator of this Court could not take effective

          measures to issue notice to the complainant with due diligence,

          as such mediation could not take place between the parties.

          Today, they inform that they have received instruction from

          their respective clients that the parties want to settle the dispute

          amicably outside the Court and for that the matter which

          primarily relates to monetary transaction be referred for

          mediation.

                       5. 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

          15.05.2026.

                       6. Heard the parties.

                       7. Having considered the rival submissions made on

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

          made in the complaint, I am of the opinion that the parties may
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          proceed to settle their dispute amicably by way of community

          mediation. In case, the parties fail to do so, then in that case, the

          parties may settle their dispute by way of mediation in

          accordance with Mediation Act, 2023 by approaching the

          learned District Court.

                       8. 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)

                        9. 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.

                       10. The Apex Court while considering the content of
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          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
                          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
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                          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."


                       11. Both the parties have willingly desired to appear

          before the learned District Court on or before 15.05.2026, so

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

                       12. 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”.
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                       13. 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.

                       14. 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.

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

          appear on or before 15.05.2026 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.

                       16. 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.

                       17. In case, the parties fail to reconcile, then in that

          case, parties may avail appropriate remedy. Then also, petitioner
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                     is directed to be released on pre-arrest bail on such terms and

                     conditions as the learned District Court deems it fit and proper.

                                  18. If both the parties arrive at amicable settlement,

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

                     have lodged against each other.

                                  19.    With aforesaid direction and observation, the

                     present application stands disposed of.

                                  20. 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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