whether failure to pay rent amounts to criminal offence?

 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.

IN THE SUPREME COURT OF INDIA

 CRIMINAL APPELLATE JURISDICTION 

CRIMINAL APPEAL NO. OF 2022

NEETU SINGH & ORS. Vs STATE  OF U.P.

CORAM:SANJIV KHANNA; BELA M. TRIVEDI, JJ. 

DATED: MARCH 07,2022 

Leave granted.

Heard the learned counsel for the parties.

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.

In view of the aforesaid position, the First Information Report is quashed.

On the question being put to the counsel for the appellants, it has been stated that the appellants have vacated the property. Learned counsel for the respondent No.3 disputes this statement, and states that the appellants have not handed over physical vacant possession of the property to respondent No.3.

Be that as it may, in view of the statement made by the learned counsel for the appellants, respondent No.3 is at liberty to enter into possession of the property without violating any law.

Learned counsel for respondent No.3 states that there are huge arrears of rent which have to be recovered. It will be open to respondent No.3 to take recourse to such civil remedy as is available to him in law.

Recording the above, the impugned order is set aside and the appeal is allowed quashing the First Information Report. The question when the appellant vacated the property and arrears of rent, etc. are left open to be decided in civil proceedings.

All pending applications are also disposed of. 

Print Page