Mere Breach Of Contract Cannot Give Rise To Criminal Prosecution For Cheating: Supreme Court

The Supreme Court reiterated that a mere breach of contract cannot give rise to criminal prosecution for cheating.The court observed that a mere breach of contract is not in itself a criminal offence and gives rise to the civil liability of damages. The Supreme Court reiterated that a mere breach of contract cannot give rise to criminal prosecution for cheating. Case details Vijay Kumar Ghai vs State of West Bengal | 2022 LiveLaw 305 | CrA 463 OF 2022 | 22 March 2022 Coram: Justices S. Abdul Nazeer and Krishna Murari Counsel: Sr. Adv Menaka Guruswamy and Advocate Arundhati Katju for appellants, Sr. Adv Anjana Prakash for respondents Headnotes Indian Penal Code, 1860 ; Sections 415,420- Breach of contract cannot give rise to criminal prosecution for cheating - Fraudulent or dishonest intention is the basis of the offence of cheating - A mere breach of contract is not in itself a criminal offence and gives rise to the civil liability of damages. Code of Criminal Procedure, 1973 ; Section 154 - There can be no second FIR where the information concerns the same cognisable offence alleged in the first FIR or the same occurrence or incident which gives rise to one or more cognizable offences - Once an FIR has been recorded, any information received after the commencement of investigation cannot form the basis of a second FIR - Barring situations in which a counter case is filed, a fresh investigation or a second FIR on the basis of the same or connected cognizable offence would constitute an "abuse of the statutory power of investigation".