The Supreme Court on Monday (January 19, 2026) set aside an order of the Allahabad High Court that had quashed criminal proceedings in a property dispute, holding that allegations of forgery and cheating cannot be brushed aside at the threshold. The top court said such claims require proper examination during trial and not summary dismissal.
Background of the Case
The case arose from a property deal in Uttar Pradesh involving an agreement to sell executed in July 2016. The complainant alleged that the buyer had agreed to purchase the property for ₹38.5 lakh and paid ₹5 lakh as earnest money. The sale deed was to be registered by August 31, 2016.
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According to the complaint, possession of part of the property was handed over, and a short-term rent agreement was also executed. However, the sale deed was never registered within the agreed time.
The complainant later alleged that the buyer forged an extension of the agreement, showing a revised date and falsely recording payment of an additional ₹33 lakh. It was also claimed that a forged affidavit was used to obtain an electricity connection and that an extra floor of the building was unlawfully occupied.
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High Court’s View
The Allahabad High Court had quashed the complaint in 2025, holding that the dispute was essentially civil in nature. It observed that for an offence of cheating, dishonest intention must exist from the very beginning, which was not evident in the case.
The High Court also noted that disputes arising out of agreements to sell are usually civil disputes and should not be converted into criminal proceedings.
Supreme Court’s Observations
Disagreeing with the High Court, a bench of Justice Rajesh Bindal and Justice Vijay Bishnoi said the allegations went beyond a simple civil dispute.
“The complaint contains specific allegations of forgery and fabrication of documents, which require examination during trial,” the bench observed.
The Court noted that if ₹33 lakh had indeed been paid a day after the agreement, as claimed in the disputed extension, the sale deed could have been executed immediately. This raised serious doubts that could not be ignored at the preliminary stage.
The judges also took note of the allegation that a forged affidavit was used to obtain an electricity connection, calling it a matter requiring evidence and judicial scrutiny.
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Court’s Decision
Allowing the appeal, the Supreme Court set aside the Allahabad High Court’s order and restored the criminal proceedings.
“The High Court exceeded its jurisdiction in quashing the complaint at the initial stage,” the bench said, adding that the matter must now proceed in accordance with law.
With this, the criminal case against the accused stands revived, and the trial court will examine the allegations on merits.
Case Title: Yogesh Kumar Goel & Anr. vs State of Uttar Pradesh & Anr.
Case No.: Criminal Appeal No. 208 of 2026
Decision Date: January 12, 2026
