Case Law Analysis
|Himachal Pradesh High Court
Section 156(3) CrPC | Hypothecation Disputes Are Civil, Not Criminal: HP HC Bars FIR for Machinery Removal Without Fraud
The Himachal Pradesh High Court ruled that merely failing to return hypothecated machinery does not amount to criminal breach of trust or cheating under the IPC, as ownership and possession remain with the borrower. Criminal law cannot be weaponized for civil debt recovery - creditors must pursue remedies under civil procedure, not police intervention.