SC Holds that Breach of Contract Does Not Give Rise to Criminal Prosecution for Cheating Unless Fraudulent or Dishonest Intention is Shown Right at Beginning of Transaction

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Mar 31, 2023

SC Holds that Breach of Contract Does Not Give Rise to Criminal Prosecution for Cheating Unless Fraudulent or Dishonest Intention is Shown Right at Beginning of Transaction

In Sarabjit Kaur v. The State of Punjab & Anr.^[1], the SC held that a breach of contract does not give rise to criminal prosecution for cheating unless fraudulent or dishonest intention is shown right at the beginning of the transaction. The Court further held that merely an allegation of failure to keep up promise will not be enough to initiate criminal proceedings. It was held that the criminal Courts are not meant to be used for settling scores or pressurise parties to settle civil dispute.

[1] Sarabjit Kaur v. The State of Punjab & Anr., Criminal Appeal No. 581 of 2023.

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