Yes, Breach of Contract is a criminal offence

  WHAT YOU ALREADY KNOW The title of the blog must have clicked your mind to some initial classes of your Indian Contract Act,1872, and must...

 WHAT YOU ALREADY KNOW

The title of the blog must have clicked your mind to some initial classes of your Indian Contract Act,1872, and must have recalled the statement of our teacher that " A contract is made between two or more persons and its breach is a private wrong done to the suffering party", and if I am not wrong we all have also learnt about the available remedies in case of breach of contract, that is, Compensation, Specific relief of contract, Quantum meriut these are some statutory and judicially evolved remedies available with the the party who suffered the breach of contract. 

If these are the lines you have clicked right now in your mind, then I must appreciate that you have attended your contract classes very sincerely.

SO WHERE IS CRIMINAL LIABILITY?

Before moving on to explain this concept, just want to ask, whether you have watched the movie "GUZAARISH" or not? If not, then please do watch for better understanding of this concept and also for entertainment :)

Now, the legal provison which makes the breach of a contract a criminal liability is : 

SECTION 491 of INDIAN PENAL CODE, 1860, Which states that : 

"Whoever, being bound by a lawful contract to attend on or to supply the wants of any person who, by reason of youth, or of unsoundness of mind, or of a disease or bodily weakness, is helpless or incapable of providing for his own safety or of supplying his own wants, voluntarily omits so to do, shall be punished with imprisonment of either description for a term which may extend to three months, or with fine which may extend to two hundred rupees, or with both."

RELEVANCY AND EXPLAINATION

First of all let us understand what are some general instances in our day to day life which are perfect examples of this section.

GENERAL INSTANCES

1. A nurse appointed to attend a person who is physically disabled or is extreme old.

2. A baby sitter appointed for a child at home whose parents have to go out for work daily.

After having a glance over all the above mentioned examples we find something common in them,that is, there is a person who, due to his illness or his tender age, is not able to fulfill his wants by his own and is dependant on another person to supply his wants.

So, a contract is entered between the guardians, of the person unable to maintain himself, with an another person who is bound by the terms of contract to take care of the person in need and satisfy all his wants as per the terms of the contract.

In the case of first example the nurse is bound to attend the patient and to take care of him,that is, to give him medicine on time,in the second example the baby sitter is bound to fulfill day to day needs of a child in absence of his parents.

If in any of the above examples, the person, who is bound to take care of such ill,physically disabled,tender aged person, voluntarily(Section 39 of the Indian Penal Code,1860) omits to take such care as he is bound to take in respect of that person, may be held liable Under Section 491 of The Indian Penal Code,1860.

This types of breach of contract are being made punishable as a criminal liability by the law makers because the breach does not relate to any liquidated or unliquidated damages, but it effects the personal life of a person against whom the person is bound to perform his duty.

IS IT CONNECTED WITH section 68 INDIAN CONTRACT ACT, 1872 ?

Section 68 of the Indian Contract Act states that: 

"If a person, incapable of entering into a contract, or any one whom he is legally bound to support, is supplied by another person with necessaries suited to his condition in life, the person who has furnished such supplies is entitled to be reimbursed from the property of such incapable person."

For Instance: A supplies B, a lunatic, with necessaries suitable to his condition in life. A is entitled to be reimbursed from B's Property.

According to this section, the person who is supplying the neccesaries which are suited the condition life of a person who is incapable of entering into a contract, may be due to tender age, unsoundness of mind, such person is not bound by any contract to supply such basic needs to the person, but, if he supplies so, then the person receiving benefit out of it is bound to reimburse, the person supplying for his needs, out of his estate.

In both the sections, that is, Section 491 IPC and Section 68 of Indian Contract Act, there is supply of basic needs, but, the former one comes into force after a contract has been entered upon to serve such needs and the later one comes into force when the needs are being alredy served, now it is time to reimburse for the benefit received.

The remedy available against breach of a contract as per Section491 IPC is criminal in nature, whereas, remedy available against non-reimbursement of the benefit received is to file a civil suit for compensation and no criminal liability can be imposed.

The contract, the breach of which imposes a criminal liability U/S 491 IPC is entered between two persons who have capacity to enter into a contract ( Section 10 of the Indian contract act), whereas the contract U/S 68 of the Indian Contract Act,1872 is a quasi contract, in which one party is not capable to enter into a contract, but then too is liable to reimburse the liability.

THANK YOU

LINK TO MY PREVIOUS BLOG: https://lawionsoflaw.blogspot.com/2021/04/rule-of-set-off-in-criminal-law_10.html