Every Breach Of Contract Would Not Amount To Breach Of Trust Or Cheating To Initiate Criminal Proceedings: Kerala High Court

The Kerala High Court ruled that breach of contract does not always amount to cheating under criminal law. The court emphasized that a mere breach of contract without fraudulent intent or dishonest inducement does not constitute cheating. The judgment clarified that criminal action for cheating requires proof of deliberate deception causing wrongful gain or loss. \r

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The case involved allegations of non-payment for goods supplied, where the court differentiated between civil liabilities arising from contractual breaches and criminal liabilities for cheating. This decision underscores the importance of distinguishing between civil disputes and criminal offenses in contractual matters.