Non-payment of rent may have civil consequences but is not a penal offence under the IPC: SC.

Reporting By: Amit Kashyap

A Division Bench of Supreme Court Comprising of Justices Sanjiv Khanna and Justice Bela M Trived in Neetu Singh & Oths Vs. State of Uttar Pradesh & Oths. CRIMINAL APPELLATE JURISDICTION CRIMINAL APPEAL NO. OF 2022 (ARISING OUT OF SLP (Crl.) NO.783 OF 2020) quashed a FIR registered against a tenant for non-payment of rent arrears and held that failure or non-payment of rent may have civil consequences, but cannot be considered a penal offence under the Indian Penal Code (IPC).

“We are of the opinion that no criminal offence is made out, even if we accept the factual assertions made in the complaint, which was registered as the First Information Report. Failure to pay rent may have civil consequences, but is not a penal offence under the Indian Penal Code, 1860 (for short, “IPC”). Mandatory legal requirements for the offence of cheating under Section 415 and that of misappropriation under Section 403 IPC are missing,” the Court said.

The top court was considering an appeal assailing an order of the Allahabad High Court that had refused to quash the FIR against the present appellant under Section 415 (cheating) and Section 403 (dishonest misappropriation of property) of the IPC.

Taking note of the submissions of one of the respondents that there are huge arrears of rent due to be recovered by the appellants, the top court left it open to them to take recourse to available civil remedies.


Leave a comment