The Supreme Court has ruled that mere non-payment of dues cannot be considered as criminal breach of trust. The court clarified that it has not expressed any opinion on the civil rights and liabilities of the parties, leaving it open to the complainant to pursue appropriate civil remedies.
Key Observations by the Supreme Court
In a significant judgment, the Supreme Court observed that the ingredients of criminal breach of trust under Section 406 of the Indian Penal Code are not attracted simply because a person fails to pay dues. The court emphasized that there must be a criminal intent or dishonest misappropriation to constitute the offense.
Background of the Case
The case involved a dispute where the complainant alleged that the accused had committed criminal breach of trust by not paying dues. The trial court had issued summons, which was challenged before the High Court and subsequently before the Supreme Court.
Court's Ruling
The apex court set aside the summons, stating that the dispute was essentially civil in nature. It held that criminal proceedings cannot be used as a tool for recovery of dues. The court, however, allowed the complainant to seek civil remedies for the recovery of the amount.
Disclaimer: This article is based on the court's observations and does not constitute legal advice.
