S.W. PALANITKAR vs STATE OF BIHAR

The Supreme Court held that the allegations against the appellants under Sections 406, 420, and 120B IPC do not constitute a criminal offence as the essential ingredients of criminal breach of trust and cheating were not satisfied. The Court emphasized that the disputes were of a civil nature arising from a contractual relationship, and the appellants were not entrusted with any property as required under Section 405 IPC. Consequently, the Court quashed the order of the High Court and set aside the summons issued by the Chief Judicial Magistrate, thereby allowing the appeal.