Failure To Pay Rent Is Not A Penal Offence: Supreme Court Quashes FIR Against A Tenant

Failure to pay rent may have civil consequences, but is not a penal offence under the Indian Penal Code, the Supreme Court observed while quashing an FIR registered against a tenant by a landlord.

The court was considering an appeal against the Allahabad High Court order that refused to quash an FIR registered for the offence of cheating under Section 415 and that of misappropriation under Section 403 IPC.

"We are of the opinion that no criminal offence is made out, even if we accept the factual assertions made in the complaint, which was registered as the First Information Report. Failure to pay rent may have civil consequences, but is not a penal offence under the Indian Penal Code, 1860 (for short, "IPC"). Mandatory legal requirements for the offence of cheating under Section 415 and that of misappropriation under Section 403 IPC are missing.", the bench comprising Justices Sanjiv Khanna and Bela M. Trivedi observed.

The court also considered the submission made on behalf of the defacto complainant that there are huge arrears of rent which have to be recovered. It will be open to him to take recourse to such civil remedy as is available to him in law, the bench said.

While quashing the FIR, the court observed that the question when the appellant vacated the property and arrears of rent, etc. are left open to be decided in civil proceedings. 

Headnotes

Indian Penal Code, 1860 ; Sections 403,415 - Failure to pay rent may have civil consequences, but is not a penal offence under the Indian Penal Code. 

Summary: Appeal against Allahabad High Court order that refused to quash FIR registered against a tenant under Section 415,403 IPC - Allowed - No criminal offence is made out, even if we accept the factual assertions made in the complaint, which was registered as the First Information Report.

Case details

Neetu Singh vs State of UP | 2022 LiveLaw (SC) 281 | SLP(Crl) 783/2020 | 7 March 2022

Coram: Justices Sanjiv Khanna and Bela M Trivedi