V. RAVI KUMAR v. STATE

Allowing the appeal, the Court HELD: 1. Where the accused seeks quashing of the FIR, invoking inherent jurisdiction of the High Court, it is wholly impermissible for the High Court to enter into the factual arena to adjudge the correctness of the allegations in the complaint. [Para 32][837-F-G]

#2. Every breach of contract does not give rise to an offence of cheating. The language and tenor of Vesa Holdings (P) Ltd., particularly, the observation that breach of contract would give rise to an offence of cheating only in those cases where there was any deception played at the very inception, is to be understood in the context of the facts of that case and accordingly construed. The phrase “in those cases where there was any deception played at the very inception” cannot be read out of context. This is not a case of breach of contract simplicitor but there are serious allegations of forgery of documents, use of blank letter-head, papers and cheque leaves of the appellant. [Para 36][838-E-G]

#3. In this case, there were clear allegations of fraud and cheating which prima facie constitute offences under Section 420 of the Indian Penal Code. The correctness of the allegations can be adjudged only at the trial when evidence is adduced. At this stage, it was not for the High Court to enter into factual arena and decide whether the allegations were correct or whether the same were a counter-blast to any proceedings initiated by the respondents. [Para 37][838-H; 839-A-B]

#4. In Jatinder Singh, this Court clearly held that if dismissal of the complaint was not on merit, but on default of the complainant, moving the Magistrate again with a second complaint on the same facts is maintainable. But if the dismissal of the complaint under Section 203 of the Code was on merits, the position could be different. [Para 38][839-B-C]

#5. The failure to mention the first complaint in the subsequent one is also inconsequential as held, in effect, in Jatinder Singh. Mentioning of reasons for withdrawal of an earlier complaint is also not a condition precedent for maintaining a second complaint. The High Court clearly erred in law in dismissing the complaint, which certainly disclosed an offence prima facie. [Para 39][839-D] A B C D E F G H 830 SUPREME COURT REPORTS [2018] 14 S.C.R.