New Delhi, September 24 – The Supreme Court on Tuesday set aside a criminal case against Ranchi resident Arshad Neyaz Khan, ruling that a decade-old property sale dispute could not be dragged into criminal court. A bench of Justices B.V. Nagarathna and R. Mahadevan quashed the FIR registered at Hindpiri police station and the related complaint, observing that “criminal law ought not to become a platform for vindictive proceedings to settle personal scores.”
Background
The case began with a 2013 agreement where Khan agreed to sell two adjoining plots in Ranchi for ₹43 lakh. The buyer, Md. Mustafa, paid an advance of ₹20 lakh but claimed that the property was never transferred. After nearly eight years, Mustafa filed a complaint in 2021 alleging cheating, criminal breach of trust, and conspiracy under Sections 406, 420, and 120B of the Indian Penal Code.
Despite an initial mediation where Khan agreed to refund ₹24 lakh in installments and even made a first payment, the settlement fell through. The Jharkhand High Court later allowed criminal proceedings to continue, prompting Khan to appeal to the Supreme Court.
Court’s Observations
The bench carefully dissected the ingredients of cheating and breach of trust. “Mere failure to keep a promise does not imply fraudulent intent from the beginning,” the judges noted, citing earlier rulings like Inder Mohan Goswami v. State of Uttaranchal. They pointed to the eight-year delay in filing the complaint and the absence of any evidence showing Khan had dishonest intent when signing the sale agreement.
Read also:- Punjab and Haryana High Court Clarifies Bail Conditions in Cheque Bounce Appeals under NI Act
Justice Nagarathna remarked, “The allegations are vague and do not inspire confidence. Criminal prosecution should not be used as an instrument of harassment or private vendetta.” The Court also highlighted that a civil suit for damages was the proper remedy, not a criminal case.
Decision
Setting aside the Jharkhand High Court’s order, the Supreme Court quashed Complaint Case No.619 of 2021 and FIR No.18 of 2021. “It is neither expedient nor in the interest of justice to permit the present prosecution to continue,” the bench concluded. With this, all related proceedings against Arshad Neyaz Khan come to an end.
Case Title: Arshad Neyaz Khan v. State of Jharkhand & Another – Supreme Court Quashes FIR in Property Dispute
Decision Date: 24 September 2025
