Supreme Court Sets Aside Punjab & Haryana High Court Judgment and Restores Criminal Proceedings in Ambience Developers Matter
Case Name: Raj Singh Gehlot & Ors. v. Amitabha Sen & Ors.
Citation: 2026 INSC 77
Date of Judgment/Order: 20 January 2026
Bench: Hon’ble Mr. Justice Sandeep Mehta
Held: The Supreme Court held that the High Court erred in interfering with criminal proceedings at a preliminary stage and in recording findings that encroached upon matters to be adjudicated during trial. It was held that issues relating to criminal culpability, including allegations of conspiracy and cheating in a real estate development project, must be determined on the basis of evidence before the competent criminal court, and that premature judicial interference which prejudices the trial process is unsustainable in law.
Summary: The appeals arose from a judgment dated 10 July 2020 passed by the High Court of Punjab and Haryana in Civil Writ Petition No. 20330 of 2015 concerning disputes related to the Ambience Lagoon residential project in Gurgaon. Allegations were made against the developers regarding concealment of material facts, misrepresentation to flat purchasers, and offences punishable under Sections 120B and 420 of the Indian Penal Code. The High Court had interfered with the proceedings, leading to the present appeals. The Supreme Court examined whether such interference was justified when criminal proceedings were at a nascent stage and factual issues required trial. The Court observed that determination of criminal intent, conspiracy, and alleged fraudulent inducement are matters that must be tested through evidence and cross-examination before the trial court, and that writ jurisdiction cannot be invoked to effectively pre-empt criminal adjudication.
Decision: The Supreme Court allowed the appeals, set aside the impugned judgment dated 10 July 2020 passed by the High Court of Punjab and Haryana, restored the criminal proceedings to be adjudicated in accordance with law, clarified that its observations shall not prejudice any pending proceedings, made no order as to costs, and disposed of all pending applications accordingly.