As per case facts, the respondent lodged a private complaint against the appellants for offenses under Sections 406, 420 & 120B IPC, alleging that his firm supplied horse feed and ... oats to the Delhi Race Club and Delhi Horse Trainers Association, but a significant amount remained unpaid since 2017. Despite legal actions, no resolution led to the private complaint. The Magistrate, after an inquiry, issued process for criminal breach of trust under Section 406 IPC, which the High Court upheld, noting prima facie mala fide intention. The question arose whether the High Court erred in rejecting the quashing application and if the allegations constituted criminal breach of trust or cheating, distinguishing between civil and criminal matters. Finally, the Supreme Court found the High Court's and Magistrate's orders lacked proper application of mind. It ruled that no criminal breach of trust was disclosed as there was no entrustment of property, but rather a sale. Mere non-payment in a sale transaction is a civil dispute, not a criminal offense. The Court stressed the need for courts and police to understand the clear distinction between criminal breach of trust and cheating, as these are independent and cannot coexist on the same facts. The criminal proceedings were deemed an abuse of process and were set aside.