The case of Rekha Jain vs. The State of Karnataka arose out of a criminal complaint (FIR No. 75/2020) registered against Kamalesh Mulchand Jain, who was accused of cheating the complainant by taking away 2 kg and 27 grams of gold jewellery through misrepresentation and inducement. During the course of investigation, it came to light that Rekha Jain, wife of the primary accused, was in possession of the gold jewellery and was absconding. As a result, Rekha Jain was also made an accused and chargesheeted under Section 420 of the Indian Penal Code (IPC), which deals with the offence of cheating.

Rekha Jain approached the High Court of Karnataka under Section 482 of the Code of Criminal Procedure (CrPC), seeking to quash the FIR and criminal proceedings against her. She contended that there were no allegations in the complaint suggesting that she had committed any act of inducement or deception. However, the High Court dismissed her petition and refused to quash the proceedings. Aggrieved by this decision, she filed a criminal appeal before the Supreme Court.

The key issue before the Supreme Court was whether Rekha Jain could be prosecuted under Section 420 IPC in the absence of any specific allegation of dishonest inducement on her part. Counsel for Rekha Jain argued that the complaint did not attribute any act of inducement to her, and all allegations of cheating were directed solely at her husband. It was also pointed out that mere possession of the jewellery, without any inducement, does not constitute an offence under Section 420. On the other hand, the complainant argued that Rekha Jain’s possession of the stolen jewellery and her act of absconding suggested involvement, and she could be liable under other offences even if not under Section 420.

After considering the arguments and examining the FIR and chargesheet, the Supreme Court observed that to constitute an offence under Section 420 IPC, there must be a dishonest inducement by the accused, which causes the deceived person to deliver property. In the present case, there were no allegations in the FIR or any material to indicate that Rekha Jain had induced the complainant in any manner. The Court concluded that the essential ingredient of dishonest inducement was completely absent in her case.

Accordingly, the Supreme Court held that Rekha Jain could not be prosecuted under Section 420 IPC. It allowed the appeal in part and quashed the criminal proceedings against her for that specific offence. However, the Court made it clear that this decision was confined only to the charge under Section 420 IPC and did not affect her liability, if any, under other provisions of law. Therefore, if any other offences are found to be made out against her based on the evidence, the appropriate legal process may continue.

In conclusion, the judgment reinforces the legal principle that for a prosecution under Section 420 IPC to stand, there must be a clear and specific allegation of dishonest inducement. Mere possession of property obtained by cheating, without participation in the act of inducement, does not by itself attract liability under this provision.