Q: Elaborate the case of Vir Prakash Sharma v. Anil Kumar Agarwal [(2007) 7 SCC 373] ?

Ans: 

Vir Prakash Sharma v. Anil Kumar Agarwal [(2007) 7 SCC 373], it has been held that:

Non-payment or underpayment of the price of the goods by itself does not amount to commission of an offence of cheating or criminal breach of trust.

Mere breach of contract cannot give rise to criminal prosecution for cheating unless fraudulent or dishonest intention is shown right at the beginning of the transaction, that is the time when the offence is said to have been committed.

The honourable Supreme Court held that In law, only because he had issued cheques which were dishonoured, the same by itself would not mean that he had cheated the complainant. Assuming that such a statement had been made, the same, in our opinion, does not exhibit that there had been any intention on the part of the appellant herein to commit an offence under Section 417 of the Indian Penal Code.