Supreme Court Quashes FIR in Goa Property Dispute, Stresses Distinction Between Civil and Criminal Matters

The Supreme Court of India has quashed an FIR filed against Jit Vinayak Arolkar and, thus, brought respite in a property dispute that had blown out of proportion into criminal allegations. This case of Jit Vinayak Arolkar Vs State Of Goa & Ors underlines the approach the Apex Court has adopted to prevent the misuse of criminal law in matters which are rooted in civil disputes.

Background:
The dispute arose due to an immovable property called "Capnivoril Guera" situated in Goa which is claimed by several persons to be its owner. When Jit Vinayak Arolkar, as a constituted attorney of Vidhya Natekar and Sanjay Natekar, executed sale deeds in respect of parts of the property. Arolkar further claimed that Vidhya and Sanjay Natekar were the legal heirs of the original owner, Sacarama Sadassiva Natecar.

However, the 4th respondent who is based in the United States, contested these claims by claiming to have co-ownership of the property inherited from his father. He filed twelve (12) civil suits in the year 2018 with a declaratory prayer of ownership in his favor. Two years later, in 2020, an FIR was also filed by him accusing Arolkar of selling the property without the consent of all legal heirs, fraudulently, therefore, charges under Section 420 of the Indian Penal Code- cheating were made out.

The Apex Court also relied on its previous judgment in case of Mohd. Ibrahim v State of Bihar (Click to Download) observed that "12.1 In this case, it is impossible to understand how the appellant deceived the 4th respondent and how the act of execution of sale deeds by the appellant caused or was likely to cause damage or harm to the 4th respondent in body, mind, reputation or property."

The Observations and Conclusion of the Supreme Court after examining the facts and arguments, made the following important observations, which led to its decision to quash the FIR:

Essentially a Civil Dispute: The Court realized that the main issue at question was one of determination of ownership and rightful inheritance and hence best left to the civil courts to decide. The sale deeds explicitly stated the transfer of ownership rights belonging to Vidhya Natekar and Sanjay Natekar and not any rights of the 4th respondent.

No Cheating: Having regard to the ingredients of the offense of cheating as defined under Section 415 of the I.P.C., the Court held that none of those were present so as to bring home the charge against Arolkar. The purchasers of the property did not complain, and there was no material on record to indicate that Arolkar had induced the 4th respondent to part with property or caused him some injury.

Undue Delay and Concealment of Facts: The Court took serious note of the inordinate delay in filing FIR after a gap of two years from the institution of civil suits by the 4th respondent. Even the complaint itself did not reveal the existence of litigation between the parties, which pointed towards the 4th respondent's motive.

Abuse of Process: The Court viewed the lodging of FIR as after undue delay and suppression of relevant facts, in an effort at abuse of the process of criminal law to wield pressure in an essentially civil dispute.

The Supreme Court, therefore, considering the fact, has quashed the FIR lodged against Arolkar showing their concern to prevent misuse of criminal litigation in matters purely of a civil nature. The court further clarified that their judgment had not affected the continuous civil suits regarding the dispute over property and they left it for the civil courts to decide upon the issue.

The judgment reinforces the principle that criminal law should not be used as a tool to gain leverage in civil disputes, and the Apex Court demonstrated its vigilance in safeguarding against the misuse of legal processes, emphasizing the need for a clear distinction between civil and criminal matters.

Coram: Justice Abhay S. Oka and Justice Ujjal Bhuyan
Between: Jit Vinayak Arolkar VS State Of Goa & Ors
Date of Order: 06-01-2025