U. DHAR vs STATE OF JHARKHAND

The Supreme Court held that the dispute between the parties regarding payment under a contract is of a purely civil nature and does not constitute criminal offences under Sections 403, 406, 420, and 120B of the Indian Penal Code. The Court emphasized that the allegations made by the complainant, even if true, relate to a failure to pay a debt rather than criminal misappropriation. Consequently, the Court quashed the order of cognizance taken by the Chief Judicial Magistrate and upheld the High Court's dismissal of the petition to quash the order, thereby ruling in favor of the appellants.