23/08/2026
The petitioners were alleged to have induced the complainant and his associates to deposit a total sum of Rs. 1,02,480/- on the assurance of appointment as Salesmen/Agents carrying a monthly salary of Rs. 22,000/-.
The complainant alleged that the promised benefits were never provided, giving rise to allegations of cheating.
On the complaint submitted on 18th September 2025, the police had initially treated the matter as a non-cognizable dispute and recorded proceedings under Section 155 CrPC (corresponding to Section 174 of the Bharatiya Nagarik Suraksha Sanhita, 2023), advising the complainant to approach the competent Court.
Within two days, and without any fresh material or change in circumstances, the police registered the impugned FIR on 20th September 2025 under Sections 318(4) and 3(5) BNS.
The petitioners approached the High Court seeking quashing of the FIR, contending that the dispute was purely commercial in nature.
Court's Observations-
On the Nature of the Underlying Relationship: The Court noted that the complainant and other persons had voluntarily joined the business as Independent Business Owners by executing Direct Seller Agreements on stamp paper. These agreements governed the rights and obligations of the parties and contained no stipulation regarding payment of a monthly salary of Rs. 22,000/- or provision of food and accommodation, as alleged in the FIR.
On the Ingredients of Cheating: The Court held that the allegations essentially arose out of a commercial and contractual relationship, and that the material on record did not prima facie disclose any fraudulent or dishonest intention on the part of the petitioners at the inception of the transaction — which is the sine qua non for constituting the offence of cheating under Section 318(4) BNS. The Court remarked that mere non-fulfilment of a promise or breach of contractual terms, absent fraudulent intention from the very inception, cannot by itself attract criminal liability.