Contractual disputes are civil matters, but the Bharatiya Nyaya Sanhita (BNS), 2023 applies when criminal acts occur within a contract. BNS covers offences like cheating, forgery of agreements, misuse of entrusted money or goods, and intentional property damage. While civil courts decide contract terms and compensation, BNS ensures strict action against any criminal behaviour linked to contractual dealings.
Contractual Disputes
Contractual disputes are mainly civil matters governed by the Contract Act and civil court procedures. The Bharatiya Nyaya Sanhita (BNS), 2023 does not decide breach of contract or compensation claims. However, BNS applies when a contractual dispute involves criminal actions such as cheating, fraud, forgery, or misuse of entrusted property.
1. Cheating & Fraud
If a person enters a contract with dishonest intention like taking money and not delivering services BNS treats it as cheating.
2. Forgery of Documents
Creating fake agreements, forging signatures, or using manipulated documents in a contract is punishable under BNS.
3. Criminal Breach of Trust
Misusing or diverting money, goods, or property entrusted under a contract attracts BNS criminal breach of trust provisions.
4. Mischief & Property Damage
Intentionally damaging materials, goods, or property related to the contract can lead to criminal charges under BNS.
Overview
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Description
Contractual disputes typically fall under civil laws, including the Indian Contract Act and civil court procedures, where issues like breach of contract, non-performance, delays, and compensation are addressed. However, when a contractual disagreement involves criminal behaviour, the Bharatiya Nyaya Sanhita (BNS), 2023 becomes applicable. BNS does not resolve contractual obligations but ensures that fraud, deception, or illegal actions within a contractual relationship are strictly punished.
One of the key criminal elements in contractual disputes is cheating, which occurs when a party enters into a contract with dishonest intent from the beginning. Examples include taking advance payments without intending to deliver services or goods, misrepresenting qualifications or capabilities, or hiding important facts to deceive the other party. In such cases, BNS provisions on cheating can be invoked, ensuring accountability for deceptive conduct.
The BNS also addresses cases involving forgery and the use of forged documents. If a person fabricates agreements, alters contract terms, forges signatures, or submits fake documents to gain unlawful advantage, they may face criminal charges. This helps maintain the authenticity and integrity of contractual paperwork.
Another important area is criminal breach of trust, which applies when property, money, or materials entrusted under a contract are dishonestly misused or diverted. Contractors, agents, business partners, or employees who misuse entrusted funds or goods can face criminal prosecution under BNS, separate from any civil claim.
Additionally, acts of deliberate property damage, such as destroying project materials, damaging equipment, or sabotaging assets associated with the contract, may fall under BNS provisions on mischief. This prevents parties from causing wrongful loss during disputes.
Overall, while civil courts determine compensation, performance, and remedies for breach of contract, the Bharatiya Nyaya Sanhita (BNS), 2023 plays a crucial role in addressing cheating, forgery, breach of trust, and intentional damage, ensuring that criminal actions within contractual dealings are punished and the integrity of business transactions is protected.
