What Is the Supreme Court's Approach When Commercial Disputes Become Criminal Cases?
There is a recurring problem in commercial litigation: A business relationship breaks down. A payment remains outstanding. A contract is disputed. A partnership collapses. A property transaction goes wrong. And suddenly, allegations of cheating and criminal breach of trust appear. But how do courts distinguish genuine criminality from an attempt to give a commercial dispute a criminal colour? A new Legal Service India article provides a useful answer by bringing together the principles emerging from Supreme Court decisions on commercial disputes, cheating, criminal breach of trust and FIR quashing. The starting point remains Bhajan Lal The article discusses the well-known principles from State of Haryana v. Bhajan Lal, including situations where allegations, even if accepted at face value, do not disclose an offence or where criminal proceedings appear to be malicious or constitute an abuse of process. But the article makes an important point: These principles are not a mechanica...