In Mala Choudhary & Anr. v. State of Telangana & Anr. (Neutral Citation: 2025 INSC 870), Supreme Court held in its 21-pagee long judgement dated July 18, 2025 that a land dispute, which is civil in nature, cannot be turned into a criminal case simply to pressurise the other side. The Supreme Court imposed a cost of Rs. 10,00,000/- on the Complainant for misusing the process of criminal law in a case which was of purely civil nature.
A Criminal Appeal was filed against the final Order of the Telangana High Court, which dismissed a Petition seeking quashing of an FIR.
The Division Bench comprising of Justices Vikram Nath and Sandeep Mehta observed: “We feel that rather than awarding interest to the complainant, it is a fit case wherein the complainant should be penalized with exemplary cost for misusing the process of criminal law in a case which was of purely civil nature.”
The Division Bench said that the High Court acted with absolute pedantic approach, while disposing of the quashing the petition filed by the Appellants in the cryptic manner, without even touching the merits of the case.
Supreme Court Against Criminalisation of Purely Civil Disputes
The Supreme Court in Mala Choudhary & Anr. vs. The State of Telangana & Anr., reiterated that Courts must vigilantly prevent the criminal justice system from being weaponised to settle what are essentially civil disputes; and High Courts, while exercising power under Section 482 CrPC, owe a duty to render reasoned orders – a perfunctory dismissal amounts to jurisdictional error susceptible to correction under Article 136.
The appellants, a 70-year-old widow of a retired Major General and her daughter (both Delhi residents), faced criminal proceedings in Telangana over an oral land sale arrangement that had simultaneously spawned a civil suit for specific performance. The Supreme Court found the FIR and subsequent arrest to be “a gross abuse of the process of law,” quashed the proceedings, imposed exemplary costs of ₹10 lakh on the complainant, and directed protective measures for the appellants.
The Supreme Court set aside the Telangana High Court’s cryptic order that had declined to quash the FIR.
The FIR under Sections 406 and 420 IPC, and all consequential proceedings were annulled.
₹10,00,000 was imposed by the Supreme Court on the complainant (agent of a builder) for misuse of criminal law, payable to the appellants.
Telangana Police was instructed to provide security whenever appellants visit the State.
Supreme Court reprimanded the High Court for a “laconic and perfunctory” approach under Section 482 CrPC.
It held that the dispute is purely contractual and already sub judice in a civil suit; therefore, criminal prosecution is unwarranted.
The Court relied on the authority that discourages criminal proceedings where civil remedies suffice.
In Rikhab Birani vs. State of Uttar Pradesh (2025 SCC OnLine SC 823), Supreme Court reiterated that initiation of criminal proceedings for breach of contract, absent the element of initial dishonest intent, amounts to abuse. It was cited to underline that liability under Sections 406/420 IPC arises only when mens rea exists ab initio.
In Paramjeet Batra vs. State of Uttarakhand (2013) 11 SCC 673, Supreme Court laid down guiding principles for quashing FIRs where civil disputes masquerade as criminal. The Court adopted the “predominant object” test from Batra to sift civil from criminal contours.
In Sachin Garg vs. State of UP (2024 SCC OnLine SC 82), Supreme Court emphasised that monetary disputes stemming from contractual relationships should ordinarily travel the civil route barring demonstrable fraud. Relied upon to justify exemplary costs in egregious misuse cases.
In A.M. Mohan vs. SHO (2024) 3 SCR 722, Supreme Court was concerned with the arrest of senior citizens in a cheque-bounce context. The Court invoked it to condemn the undue custodial humiliation of the 70-year-old appellant.
In Lalit Chaturvedi vs. State of UP (2024 SCC 171), the Supreme Court held that High Courts must give cogent reasons while rejecting petitions under Section 482. The present decision extends that principle by tagging summary dismissals as “jurisdictional impropriety”.:
The Court posed the mirror of FIR narrative in front of the pleadings in the civil suit, identifying material inconsistencies concerning the sale consideration and subject-matter of the alleged oral agreement. This divergence showed embellishment only to invoke criminal jurisdiction.
Missing ingredients of Sections 406 and 420 IPC
-Section 406 (Criminal Breach of Trust): requires entrustment and subsequent dishonest misappropriation. Here, money was paid under a contractual arrangement; failure to perform does not ipso facto constitute misappropriation.
-Section 420 (Cheating): demands fraudulent intent at the inception of the transaction. The Court found no contemporaneous material suggesting that the appellants never intended to sell the land.
As a consequence, the FIR was devoid of a prima facie foundation in criminal law.
The Supreme Court has censured the High Court’s “pedantic” disposal, emphasising that Section 482 petitions are vital safety valves to curb misuse of criminal law. A failure to assign reasons undermines litigant confidence.
The trial courts and High Courts have been put on notice that a mere overlap with civil proceedings necessitates a deeper look before allowing criminal prosecution to continue.
The ₹10-lakh cost sets a deterrent; litigants and lawyers may reassess the tactical filing of FIRs to pressure opposite parties.
The judgement illustrates that the Supreme Court is willing to overturn perfunctory Section 482 orders, prompting High Courts to craft reasoned decisions.
The Court issued directions for police protection and observations against needless custodial arrests can be invoked in similar scenarios nationwide.
Article 136 of the Constitution is invoked by the Supreme Court to exercise plenary powers not merely to correct lower-court errors but to quash proceedings outright where justice so demands.
Section 482 CrPC provides inherent power of High Courts to prevent abuse of court processes or to secure the ends of justice. It permits quashing of FIRs and criminal proceedings at a pre-trial stage.
An essential component of most criminal offences; it refers to the mental state indicating intent or knowledge of wrongdoing at the time the act was committed.
Article 136 of the Constitution grants the Supreme Court special leave to entertain appeals against any judgment, decree, or order from any court/tribunal in the country; an extraordinary and discretionary jurisdiction.
Court can impose costs beyond simple reimbursement to penalise parties who have abused court processes or engaged in frivolous litigation.
Civil vs. Criminal Liability
Civil liability is concerned with private rights and remedies (e.g., damages, specific performance), whereas criminal liability involves offences against the State punishable by imprisonment, fine, etc. The same factual matrix can sometimes give rise to both, but courts examine intent and statutory ingredients to demarcate.
The judgement in Mala Choudhary vs. State of Telangana has affirmed that the criminal law cannot be a coercive debt-recovery mechanism or a substitute for civil adjudication.
Reasoned orders are the sine qua non of justice delivery under Section 482 CrPC.
The Supreme Court will directly quash proceedings and imposing punitive costs when injustice is manifest.
This judgment serves a double function—shielding bona-fide civil disputants from criminal harassment and cautioning complainants that strategic FIRs can rebound with heavy financial consequences. It is a lesson for litigants, lawyers, and trial courts.
Prior to this, in the 6-page long judgement dated April 28, 2025, Justice Alok Kumar Pandey of Patna High Court in Ram Vinay Mahto vs. The State of Bihar (2025) had observed:"5. The Hon’ble Supreme Court in catena of judgments has held that regular suit is appropriate remedy for settlement of dispute relating to property rights between private persons. The remedy under Article 226 of the Constitution shall not be available except where there is violation of some statutory duty on the part of statutory authority is alleged. It is held that the High Court cannot allow its constitutional jurisdiction to be used for deciding disputes, for which remedies under the general law, civil or criminal are available. The jurisdiction under Article 226 of the Constitution being special and extra-ordinary should not be exercised casually or lightly on mere asking by the litigant. In this context, the decision of the Hon’ble Supreme Court in the case of Sohan Lal vs. Union of India & Anr. reported in AIR 1957 SC 529 and in Radhey Shyam & Anr. Vs. Chhabi Nath and Ors, reported in (2015) SCC 423 are quite relevant."
Prior to this, in his 6-page long judgement dated April 28, 2025, Justice Alok Kumar Pandey in Ram Vinay Mahto vs. The State of Bihar (2025) observed:"5. The Hon’ble Supreme Court in catena of judgments has held that regular suit is appropriate remedy for settlement of dispute relating to property rights between private persons. The remedy under Article 226 of the Constitution shall not be available except where there is violation of some statutory duty on the part of statutory authority is alleged. It is held that the High Court cannot allow its constitutional jurisdiction to be used for deciding disputes, for which remedies under the general law, civil or criminal are available. The jurisdiction under Article 226 of the Constitution being special and extra-ordinary should not be exercised casually or lightly on mere asking by the litigant. In this context, the decision of the Hon’ble Supreme Court in the case of Sohan Lal Vs. Union of India & Anr. reported in AIR 1957 SC 529 and in the case of Radhey Shyam & Anr. Vs. Chhabi Nath and Ors, reported in (2015) SCC 423 are quite relevant."
Earlier, in a 7--page long judgement dated February 28, 2024 in Praduman Singh vs. The State of Bihar (2024), Justice Chandra Shekhar Jh relied on three Supreme Court's judgements in 1.M/s. Indian Oil Corporation vs. M/s. NEPC India Ltd. and Ors. [(2006) 6 SCC 736], Joseph Salvaraja A. vs. State of Gujarat and Others [(2011) 3 SCC (Crl.) 23] and State of Haryana vs. Bhajan Lal [1992 Supp. (1) SCC 335] to reach similar conclusion.
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