New Delhi, May 16 -- The Madhya Pradesh High Court has reiterated that disputes arising purely from commercial transactions cannot be converted into criminal prosecution, quashing an FIR filed for cheating and criminal breach of trust in a property dispute case.

A bench of Justice B.P. Sharma observed that disagreements involving contractual obligations, financial settlements and plot transfers must be resolved through civil proceedings rather than criminal action.

In the present matter, the court observed that the parties were engaged in commercial dealings arising from development agreements and property transactions. It held that the record did not show any entrustment of property in the legal sense required under Section 409 IPC.

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