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Banking & Debt Recovery LawSupreme Court of India

Abhishek Singh v. Ajay Kumar & Ors.

Criminal Appeal · 2025 INSC 807Decided 5 Jun 2025
Crl.A. No.-002900-002900 - 2025 (arising out of SLP(Crl.) No.480/2025)
Justice Sanjay Karol · Justice Manoj Misra

Background

The appellant, Abhishek Singh, had pledged 254 grams of gold ornaments with a Bank of India branch to secure a loan of ₹7,70,000. After he repaid the outstanding amount (with some delay), the bank got the gold revalued by a different valuer, who reported that the pledged material was not genuine gold but gold-plated metal. When the appellant sought return of his gold, the bank instead pursued a case against him, and he in turn filed an FIR against the bank's Branch and Credit Manager and others alleging cheating and criminal breach of trust. The High Court of Judicature at Patna quashed that FIR under Section 482 CrPC, prompting this appeal.

Decision Breakdown

The Supreme Court held that the High Court had improperly quashed the FIR at the threshold stage. It noted that once the loan was fully repaid, there was no satisfactory explanation for why the bank proceeded to revalue and auction the gold, and that the High Court's reasoning had failed to address the possibility that bank officials or the valuers were themselves involved in misappropriating the pledged gold. Since the gold remained in the bank's exclusive custody throughout and no independent third-party verification of the second valuation was done, the Court found a prima facie case was made out that warranted investigation and trial rather than summary quashing. The FIR proceedings were accordingly revived and restored to the trial court, with no opinion expressed on the ultimate guilt or innocence of the accused.

Lesson Learnt

Courts will not quash a criminal complaint at the FIR stage merely because the underlying dispute has civil/contractual overtones (like a bank loan). If the facts disclose a prima facie criminal element, especially involving property held in the custody of the other party, the matter must go to trial rather than being cut short.

Abhishek Singh v. Ajay Kumar & Ors. – Legal Case Shots | LegalAware