Justice R.S. Garg held that bona fide purchasers cannot be prosecuted for criminal trespass or breach of trust when possession was lawfully transferred under a valid agreement, calling the case a misuse of criminal law for a civil dispute.
The Chhattisgarh High Court has quashed criminal proceedings initiated against property purchasers in a Raipur real estate dispute, ruling that there was no case of criminal trespass, cheating, or criminal breach of trust, as possession was lawfully handed over through a written agreement signed by the owners themselves.
Delivering judgment on July 5, 2001, in Rohit Verma vs Sheikh Sultan (2001 Local Law (CG) 64), Justice R.S. Garg clarified that a criminal case cannot be used to settle civil property disagreements. The ruling came in response to petitions filed under Section 482 of the Code of Criminal Procedure (CrPC) seeking to quash the proceedings initiated by the Judicial Magistrate First Class, Raipur.
The case stemmed from a 1991 agreement between Sheikh Sultan and Smt. Mehmooda Begum, owners of a property, and M/s J.K. Builders and Engineers, represented by partners Jitendra Kumar Goyal and Prakash Dawda, for a total consideration of ₹37 lakh. The property was handed over to the builders for construction and subsequent sale of commercial units.
Subsequently, several buyers, including Rohit Verma and others, entered into purchase agreements signed by all parties — the complainants, builders, and purchasers. The agreements stated that the consideration was paid and possession was handed over to the buyers.
A dispute later arose between the landowners and the builders over alleged non-payment of money. The complainants filed a criminal complaint, accusing the builders and purchasers of cheating and illegal possession. The Magistrate issued summons to all accused under Sections 406, 420, 422, 423, and 448 of the Indian Penal Code (IPC).
Justice Garg examined the documents and found no material suggesting fraudulent conduct by the purchasers.
“From the tripartite agreement, it clearly appears that the complainants and the builders had agreed to sell the property, acknowledged receipt of money, and declared that possession had been legally handed over,” the Court observed. “The applicants appear to be bona fide purchasers for consideration and have been made scapegoats in a civil dispute.”
The Court further clarified that Section 406 (criminal breach of trust) did not apply, as there was no element of entrustment or dishonest misappropriation. Similarly, Section 448 (house-trespass) could not be invoked since possession was transferred lawfully under a signed contract.
Citing Sections 441 and 442 IPC, Justice Garg explained that criminal trespass requires unlawful entry into property “in possession of another” with intent to commit an offence. In this case, the complainants had already parted with possession, nullifying any claim of trespass.
“It is not the case of the complainants that the accused entered with intent to commit an offence,” Justice Garg held. “Their possession under the agreement cannot be termed illegal. The proceedings registered against them deserve to be quashed.”
Accordingly, the Court allowed the applications filed by Rohit Verma and others, quashing all criminal proceedings against them. The petition filed by builder Jitendra Kumar Goyal was, however, dismissed, leaving him to face trial.
Case Details
- Case Title: Rohit Verma vs Sheikh Sultan
- Court: High Court of Chhattisgarh
- Judge: Justice R.S. Garg
- Date of Decision: July 5, 2001
- Citation: 2001 Local Law (CG) 64
- Equivalent Citations: 2001 3 MPHT (Chh) 37, 2001 2 BilasLJ 73
- Case Type: Misc. Criminal Case Nos. 6918/99, 6469/99, and 4891/99
- Subject: Criminal / Property Dispute / Civil vs Criminal Jurisdiction
- Acts Referred:
- Indian Penal Code, 1860 – Sections 405, 406, 420, 422, 423, 441, 442, 448
- Code of Criminal Procedure, 1973 – Sections 200, 202, 482
- Final Decision: Proceedings quashed for purchasers (M.Cr.C. Nos. 6918/99 & 6469/99 allowed); builder’s plea (M.Cr.C. No. 4891/99) dismissed
