18 July 2025 Criminal Appeals & Suspension of Sentence >> Criminal Law  

The Supreme Court of India recently overturned an order by the High Court of Telangana in the matter of Mala Choudhary & Another v/s State of Telangana & Another, quashing a First Information Report (FIR) and subsequent criminal proceedings against a 70-year-old woman and her daughter. The Court found the criminal case to be a "gross abuse of the process of law" stemming from a purely civil dispute. A cost of Rs. 10,00,000/- (Rupees Ten Lakhs only) was imposed on the complainant for misusing the criminal justice system.

The case originated from an oral agreement for the sale of a 500-square-yard plot of land in Gachibowli, Telangana, owned by Appellant No. 1, the wife of a Late Army personnel. The complainant, an agent of a construction company, initially approached the appellant's husband for the purchase. After his demise, an oral agreement was reached with the appellants. The appellants claimed the sale consideration was Rs. 5,75,00,000/-, with conditions for payment by specific dates, leading to revised higher prices if payments were delayed. The complainant, however, asserted the total consideration was Rs. 5,00,00,000/-, including a Rs. 75,00,000/- cash payment, and transferred Rs. 4,05,00,000/- via banking channels.

Despite the non-materialization of the transaction, the complainant lodged an FIR alleging cheating and criminal breach of trust. The FIR also falsely claimed the agreement included a Delhi farmhouse and an adjoining plot owned by another party, which was contradicted by the civil suit for specific performance later filed by the complainant.

Appellant No. 1, despite her age and medical condition, was arrested and detained for eight days in connection with the FIR. Aggrieved, the appellants sought to quash the FIR in the Telangana High Court, but their petition was dismissed in a "laconic and perfunctory" manner, without addressing the merits.

The Supreme Court, exercising its extraordinary jurisdiction, criticized the High Court's approach and found clear discrepancies between the allegations in the FIR and the complainant's own civil suit. The Court concluded that the complainant, wielding influence, had manipulated facts to give a civil dispute a criminal color.

Recognizing the "harassment and humiliation" caused to the appellants, especially the elderly Appellant No. 1, the Supreme Court quashed the FIR and all related proceedings. The Court also took note of the appellants' offer to refund the Rs. 4,05,00,000/- received through banking transactions, and the complainant's refusal unless interest was paid.

In addition to imposing costs on the complainant, the Supreme Court directed that police protection be provided to the appellants whenever they visit Hyderabad for property management, citing their apprehension of harm from the complainant.