Magistrate Can Rely On S.202 CrPC Inquiry To Decline Process Where Complaint Gives Criminal Colour To Civil Dispute: J&K&L High Court

Holding that where such material demonstrates that the dispute is essentially civil in nature and the criminal complaint is an attempt to convert a civil dispute into a criminal prosecution, the Magistrate is justified in dismissing the complaint under Section 203 CrPC, the Court declined to interfere with concurrent orders of the Magistrate and the Revisional Court.

Justice Sanjay Dhar made these observations while dismissing a petition challenging the rejection of a complaint alleging criminal breach of trust under Section 406 IPC.

In his petition the petitioner alleged that he had been running a dhaba known as "Punjabi Rasoi" in a shop owned by the respondents' mother from 2008 until August 2019. According to him, the abnormal situation following the abrogation of Article 370 compelled him to leave Kashmir, leaving behind articles used in the business. After returning, he claimed that the respondents refused to return those articles and instead used them for operating their own dhaba, thereby committing criminal breach of trust.

Before issuing process, the trial Magistrate postponed the matter and directed an inquiry under Section 202 CrPC. The inquiry report disclosed that the petitioner had vacated the premises after leaving substantial arrears of rent and electricity charges, that the respondents had retained the articles as security for recovery of the outstanding amount, and that the petitioner himself had executed an affidavit recording a settlement and undertaking to clear the dues.

Taking these circumstances into account, the Magistrate dismissed the complaint under Section 203 CrPC. The Revisional Court upheld the order, leading to the present petition under Section 482 CrPC.

Court's Observations:

Affirming the decision, the Court held that the Magistrate had correctly considered both the complaint and the inquiry report before concluding that no criminal offence was made out. It further held that the petition before the High Court was, in substance, an impermissible second revision camouflaged as a petition under Section 482 CrPC.

Justice Dhar observed that the object of an inquiry under Section 202 CrPC is to enable the Magistrate to ascertain whether sufficient grounds exist for proceeding against the proposed accused. Consequently, the Magistrate is entitled to consider not only the allegations in the complaint but also the material gathered during the inquiry.

Justice Dhar further held that the inquiry report demonstrated that the respondents had retained the articles as security for unpaid dues and that a settlement acknowledging the petitioner's liability had already been arrived at between the parties. The Court observed,

"There was sufficient material on record before the learned trial Magistrate to conclude that the dispute between the parties is purely of civil nature which has been given a criminal colour by the petitioner by filing a criminal complaint against the respondents."

The Court further held that the Magistrate had correctly evaluated both the complaint and the Section 202 inquiry report while forming an opinion that no offence was made out. Justice Dhar added,

"It is a settled law that at the time of considering the issuance of process against the accused, the Magistrate is required not only to take into consideration the allegations made in the complaint, but he has also to take into consideration the material collected by the Inquiry Officer, to whom the inquiry has been entrusted under Section 202 of the Cr. P.C."

The Court also found the petition to be procedurally untenable. Having already challenged the Magistrate's order in revision before the Sessions Court, the petitioner could not invoke the High Court's inherent jurisdiction merely to secure a second round of revisional scrutiny, it opined.

The Court reiterated that the statutory bar contained in Section 397(3) CrPC cannot ordinarily be circumvented by filing a petition under Section 482 CrPC, except in exceptional cases, none of which existed in the present matter.

Holding that the Magistrate had rightly relied upon the Section 202 inquiry report to conclude that the complaint merely sought to give a criminal colour to a civil dispute the High Court dismissed the petition.

Case Title: Abdul Wahab Qureshi v. Mohammad Showkat & Anr.

Citation: 2026 LiveLaw (JKL) 315

Appearances:

For Petitioner: Mr. M. A. Rathore, Advocate.

For Respondent: Mr. Moomin Sultan, Advocate.

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