SC: Mere non-performance of agreement to sell does not amount to offence of cheating & criminal breach of trust

The Supreme Court in the case Radheyshyam & Ors. v. State of Rajasthan & Anr observed that mere nonperformance of an Agreement to Sell by itself does not amount to the offences of cheating and criminal breach of trust and also quashing a criminal case against three persons for failing to execute a sale despite an agreement to sell a property.

The court in the case observed that, 'Mere nonperformance of an Agreement to Sell by itself does not amount to cheating and criminal breach of trust. The Respondent No. 2 has adequate remedy of filing a Civil Suit for relief of specific performance of a contract which he has already availed and the suit is still pending. The First Information Report, FIR only appears to be an arm-twisting mechanism to pressurize the appellants to execute the Sale Deed or to extract money. Thus, every civil wrong cannot be converted into a criminal wrong. As this court find the present case, respondent no.2 is trying to abuse the criminal machinery for ulterior motives.'