The Supreme Court quashed criminal proceedings against the accused appellant, holding that no prima facie case was established under Sections 420, 406, and 34 of the IPC. The Court ruled that mere subsequent purchase of property from a co-accused, without allegation of inducement or involvement in the initial fraudulent transaction, does not attract criminal liability for cheating or criminal breach of trust.
Facts Of The Case:
The case originates from an FIR filed by Ms. Amutha in October 2022 against Gunasekaran (Accused No. 1) for offences under Section 420 of the IPC. She alleged that in 2015, Gunasekaran fraudulently represented himself as the owner of a vacant plot, inducing her into an unregistered sale agreement for ₹1.64 crore. She paid substantial sums totaling ₹92 lakhs between 2015 and 2016. It was later discovered he had no valid title. After investigation, a chargesheet was filed implicating both Gunasekaran and his son, G. Prasad Raghavan (the appellant/Accused No. 2). The allegation against the appellant was that in March 2022, knowing his father had not returned the informant’s money, he purchased the same plot from him via a registered sale deed for ₹60 lakhs while being a student with no independent income. The trial court and the High Court rejected the appellant’s discharge petition. The appellant approached the Supreme Court contending he was a minor during the original 2015-2016 transaction and was not involved in any inducement or payment, and his subsequent 2022 purchase alone could not constitute the alleged offences.
Procedural History:
The procedural history of the case commenced with the filing of FIR No. 0032 of 2022 before the CBCID Police Station, Puducherry, against the original accused. Following investigation, a chargesheet was filed against both accused persons. The appellant, along with the co-accused, filed a discharge application under Section 239 of the Code of Criminal Procedure before the Chief Judicial Magistrate, Puducherry, which was dismissed on 15.03.2024. Subsequently, a Criminal Revision Case (No. 1430 of 2024) was jointly filed before the High Court of Judicature at Madras, which was also dismissed vide order dated 15.04.2025. The appellant then approached the Supreme Court by way of a Special Leave Petition (Criminal) No. 12380 of 2025, which was converted into the present Criminal Appeal. The Supreme Court allowed the appeal, quashing the impugned orders and discharging the appellant from the criminal proceedings.
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