Breach of contract by a party does not give rise to a criminal case for cheating

A two-judge bench of the Hon’ble Supreme Court of India (“Supreme Court”) held that a breach of contract will not give rise to criminal prosecution for cheating unless fraudulent or dishonest intention is shown right at the beginning of the transaction. The Supreme Court also held that criminal courts are not meant to be used for settling scores or pressurizing parties to settle civil disputes.

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