A breach of contract does not give rise to criminal prosecution for cheating unless fraudulent or dishonest intention is shown right at the beginning of the transaction. noting that the present dispute is entirely with respect to property and more particularly buying and selling thereof a perusal of the record in no uncertain terms reflects the dispute as being of a civil nature. Further, merely the allegation of failure to keep up promise, held, will not be enough to initiate criminal proceedings. Further held, the criminal court should exercise a great deal of caution in issuing the process, particularly when matters appear essentially of civil nature and, thus, any effort to settle civil disputes and claims, which do not involve any criminal offence, by applying pressure through criminal prosecution should be deprecated and discouraged.
[Kunti v. State of U.P., (2023) 6 SCC 109]