MADHAVRAO JIWAJI RAO SCINDIA & ANR. ETC. versus SAMBHAJIRAO CHANDROJIRAO ANGRE & ORS. ETC.

Citation: [1988] 2 S.C.R. 930 · Decided: 09-02-1988 · Supreme Court of India · Bench: RANGANATH MISRA · Disposal: Dismissed
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Judgment (excerpt)

A 
MAD HA VRAO JIW AJI RAO SCINDIA & ANR. ETC. ,
v. 
"
SAMBHAJIRAO CHANDROJIRAO ANGRE & ORS. ETC. 
FEBRUARY 9, 1988 
B 
[RANGANATH MISRA, G.L. OZA AND 
MURARI MOHON DUTT, JJ.) 
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Criminal Procedure Code, 1973: Section 482-Prosecution at the 
initial stage-Quashing of-Test to be applied by Court-Whether 
uncontroverted allegations establish a prima facie offence-Whether 
c expedient in interest of justice to permit prosecution to continue. 
~· 
Indian Penal Code, 1860: Sections 34, 120-B, 406, 467-Alle-
gation that officers of Trust in collusion with trustee created tenancy in 
respect of trust flat-Whether case of breach of trust-Whether amounts 
D to a criminal offence or only a civil wrong. 
Indian Trusts Act 1882: Section 53-Lease of trust property-
Allegation that officers of Trust in collusion with trustee created tenancy 
in respect of flat of trust-Prosecution under Section 406, 467 I. P. C.-
Whether maintainable. 
E 
r 
A trust with the settler, her son and two others, as trustees was 
created. Part of the trust property included a large house. 
Respondents in Criminal Appeal No. 658 of 1986, were employed 
as Secretary and Manager of the trust between 1976 and June, 1981. On 
F a complaint filed in the court of the Metropolitan Magistrate by one of 
the trustees alleging that these two officers, in conspiracy with one of the _y 
trustees, son of the settler, and his wife, had created documents show· 
ing tenancy in respect of a flat of the large house, forming part of the 
trust property, in favour of the aforesaid trustee's wife, summons were 
directed to be issued against the aforesaid four accused for offences 
punishable under sections 406 and 467 read with section 34 and 120B of 
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G the IPC. 
The accused persons challenged the proceedings before the High 
y 
Court which quashed the proceedings against two of the accused, but 
sustained the order of the Magistrate against the other two accused, 
H appellants in Civil Appeal No. 657 of 1986. 
930 
M.J. RAO v. S.C. ANGRE 
931 
,,., '\ 
Appeals against the aforesaid order were filed in this Court both 
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by the two accused, whose prosecution was not quashed, as also the 
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complainant. 
On behalf of the accused-appellants, it was contended that the 
trust-deed authorised the trustee to look after the affairs of the trust, 
but the tenancy in favour of the trustee's wife could not be considered as B 
t 
creating an interest in favour of the trustee as the wife was an indepen· 
dent person having her own income, that there was no mens rea in· 
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volved for initiating criminal proceedings and, at the most it amounted 
.. 
to a civil wrong, and that the court machinery should not be permitted 
to be utilised for private vengeance as the mother and the son had fallen 
out. 
c 
r· 
On behalf of the complainant it was urged that in view of s. 53 of 
the Indian Trusts Act, it was a clear case of breach of trust and that 
every breach of trust would simultaneously be a civil wrong and a 
criminal offence, and an opportunity should be given to the complain-
ant to establish his case by leading evidence, and that no objection could 
D 
he taken at the preliminary stage. 
Allowing the appeal of the accused and dismissing the appeal of 
the complainant, the Court, 
'>( 
HELD: When a prosecution at the initial stage is asked to be E 
quashed, the test to be applied by the court is as to whether the uncon· 
" 
troverted allegations, as made, prima facie establish the offence. It is 
also for the court to take into consideration any special features whkh 
.. 
appear in a particular case to consider whether it is expedient and in the 
interest of justice to permit a prosecution to continue. This is so on the 
basis that the court cannot be utilised for any oblique purpose and F 
X.. 
where in the opinion of the court chances of an ultimate conviction is 
bleak and, therefore, no useful purpose is likely to be served by allow· 
ing a criminal prosecution to continue, the court may while taking into 
consideration the special facts of a case also quash the proceeding even 
though it may be at a preliminary stage. l934G·H; 935A] 
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G 
A case of breach of trust may be both a civil wrong and criminal 
y 
offence. But there would be certain situations where it would predomin· 
antly be a civil wrong and may or may not amount to criminal offence. 
The instant case is one of that type where, if at all, the facts may 
constitute a civil wrong and the ingredients of the crim
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