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    Order: 2024 INSC 48

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    The Supreme Court of India granted anticipatory bail to Jay Shri and Hitesh Kela who were accused of offenses under Sections 420 and 120B of the Indian Penal Code regarding a breach of contract case. The Court held that mere breach of contract does not amount to criminal offenses of fraud or criminal breach of trust unless fraudulent or dishonest intention is shown from the beginning. The Court warned against converting civil disputes into criminal cases and using criminal prosecution to settle civil claims or disputes. The Court found that Jay Shri and Hitesh Kela made out a case for anticipatory bail and directed that they be released on bail if arrested in connection with the case.

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    Order: 2024 INSC 48

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    The Supreme Court of India granted anticipatory bail to Jay Shri and Hitesh Kela who were accused of offenses under Sections 420 and 120B of the Indian Penal Code regarding a breach of contract case. The Court held that mere breach of contract does not amount to criminal offenses of fraud or criminal breach of trust unless fraudulent or dishonest intention is shown from the beginning. The Court warned against converting civil disputes into criminal cases and using criminal prosecution to settle civil claims or disputes. The Court found that Jay Shri and Hitesh Kela made out a case for anticipatory bail and directed that they be released on bail if arrested in connection with the case.

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    The Supreme Court of India granted anticipatory bail to Jay Shri and Hitesh Kela who were accused of offenses under Sections 420 and 120B of the Indian Penal Code regarding a breach of contract case. The Court held that mere breach of contract does not amount to criminal offenses of fraud or criminal breach of trust unless fraudulent or dishonest intention is shown from the beginning. The Court warned against converting civil disputes into criminal cases and using criminal prosecution to settle civil claims or disputes. The Court found that Jay Shri and Hitesh Kela made out a case for anticipatory bail and directed that they be released on bail if arrested in connection with the case.

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    © All Rights Reserved
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    13 views3 pages

    Order: 2024 INSC 48

    Uploaded by

    ae828434
    The Supreme Court of India granted anticipatory bail to Jay Shri and Hitesh Kela who were accused of offenses under Sections 420 and 120B of the Indian Penal Code regarding a breach of contract case. The Court held that mere breach of contract does not amount to criminal offenses of fraud or criminal breach of trust unless fraudulent or dishonest intention is shown from the beginning. The Court warned against converting civil disputes into criminal cases and using criminal prosecution to settle civil claims or disputes. The Court found that Jay Shri and Hitesh Kela made out a case for anticipatory bail and directed that they be released on bail if arrested in connection with the case.

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    of 3

    Non-Reportable

    2024 INSC 48
    IN THE SUPREME COURT OF INDIA

    CRIMINAL APPELLATE JURISDICTION

    CRIMINAL APPEAL NO. OF 2024


    (arising out of SLP(Crl.) No. 14423 OF 2023)

    JAY SHRI & ANR. APPELLANT(S)

    VERSUS

    STATE OF RAJASTHAN RESPONDENT(S)

    O R D E R

    Leave granted.

    With the consent of the learned counsel for the parties, we

    have taken up the appeal for hearing. Right to file reply is

    waived.

    We have heard learned counsel for the parties, including

    counsel for the complainant/informant, who has filed an application

    seeking impleadment, which is allowed impleading him as respondent

    no. 2 to the present appeal.

    Prima facie, in our opinion, mere breach of contract does not

    amount to an offence under Section 420 or Section 406 of the Indian

    Penal Code, 18601, unless fraudulent or dishonest intention is

    shown right at the beginning of the transaction.2 This Court has


    Signature Not Verified

    time and again cautioned about converting purely civil disputes


    Digitally signed by
    Deepak Guglani
    Date: 2024.01.19
    18:14:08 IST
    Reason:

    1 For short, “IPC”.


    2 Sarabjit Kaur v. State of Punjab and Another, (2023) 5 SCC 360.

    Crl.A @ SLP(Crl.) No. 14423/2023 1


    Non-Reportable

    into criminal cases.3 Any effort to settle civil disputes and

    claims, which do not involve any criminal offence, by applying

    pressure through criminal prosecution should be deprecated and

    discouraged.4

    In view of the aforesaid position, we feel that the

    appellants – Jay Shri and Hitesh Kela have made out their case for

    grant of anticipatory bail. Accordingly, it is directed that in the

    event of the appellants – Jay Shri and Hitesh Kela being arrested

    in connection with First Information Report (FIR) no. 0220/2022

    dated 26.08.2022 registered with Police Station – Osiyan, District

    – Jodhpur Rural, Rajasthan for the offence(s) punishable under

    Sections 420 and 120B of the IPC, they shall be released on bail by

    the arresting/investigating officer or the trial court on terms and

    conditions to be fixed by the trial court.

    In addition, the appellants – Jay Shri and Hitesh Kela shall

    comply with the conditions mentioned in Section 438(2) of the Code

    of Criminal Procedure, 1973.

    Recording the aforesaid, the impugned judgment/order is set

    aside and the appeal is allowed.

    We clarify that the grant of anticipatory bail and the

    observations made in the present order will not be treated as an

    expression of opinion on the merits of the case. Further, this

    order will have no bearing whatsoever on any civil proceeding(s).

    3 Indian Oil Corpn. v. NEPC India Ltd. and Others, (2006) 6 SCC 736; Vijay Kumar
    Ghai and Others v. State of West Bengal and Others, (2022) 7 SCC 124.
    4 Indian Oil Corpn. v. NEPC India Ltd. and Others, (2006) 6 SCC 736, para 13.

    Crl.A @ SLP(Crl.) No. 14423/2023 2


    Non-Reportable

    Pending application(s), if any, shall stand disposed of.

    ..................J.
    (SANJIV KHANNA)

    ..................J.
    (DIPANKAR DATTA)
    NEW DELHI;
    JANUARY 19, 2024.

    Crl.A @ SLP(Crl.) No. 14423/2023 3

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