Authority: Supreme Court of India, Criminal Appellate Jurisdiction
Order Date: 31 July 2026
Case Overview
- Appellants: G. Saminathan and S. Radhika Malini; Respondent: The State represented by Sub‑Inspector of Police and the Joint Managing Director of M/s Barath Building Construction (India) Pvt. Ltd.
- The dispute originated from a Joint Development Agreement dated 23‑May‑2012 for vacant land (0.50 acre + 0.50 acre) in Sholinganallur, Chennai, where the complainant paid a refundable security of Rs 3 crore to the appellants.
- The appellants cancelled the General Power of Attorney on 5‑Jan‑2018 and sold the property to Smt. Banumathi on the same day, prompting a criminal complaint alleging cheating, criminal breach of trust, and abetment (IPC §§406, 420, 109, 34).
- The Madras High Court, by its judgment dated 28‑Mar‑2025, refused to quash the criminal proceedings; the appellants filed a petition under Section 482 CrPC before this Court.
Final Outcome
- The Supreme Court set aside the High Court’s order and allowed the petition, quashing all criminal proceedings arising from FIR No.181 of 2021, the chargesheet dated 23‑Mar‑2023, and C.C. No.2776 of 2023.
- The Court held that the allegations constitute a civil dispute; the FIR and chargesheet do not prima facie satisfy the ingredients of cheating or criminal breach of trust.
- Consequently, the criminal case is dismissed, but the parties may continue to pursue appropriate civil remedies, including enforcement of the arbitral award dated 12‑Apr‑2023.
Topics: Criminal Procedure, Civil Dispute