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Supreme Court Grants Anticipatory Bail in Civil Debt Dispute, Overturns Rajasthan HC Order

Highlighting that settled law bars criminal breach claims after a completed sale, the court criticised lower courts’ reliance on police for debt recovery.

Overview

  • The couple faced charges of cheating, criminal breach of trust and conspiracy after an FIR alleged they paid ₹3.5 lakh for plywood but left ₹12.59 lakh unpaid
  • The bench reaffirmed that a completed sale transaction ordinarily cannot constitute criminal breach of trust under established precedent
  • The court found the Rajasthan High Court’s reliance on police machinery for civil debt recovery to be legally unsound
  • In a rare move, justices made an exception to their usual restraint on overturning high-court bail refusals due to clear misapplication of law
  • Justice Pardiwala retracted his earlier criticism of an Allahabad High Court judge following Chief Justice Gavai’s intervention