Allowed

Praveen Kumar and Ors. v. State and Ors.

Delhi HC20 Sept 2024W.P.(CRL)/1537/2023

Case brief

AI extract

What is this about?

The Delhi High Court quashed an FIR registered under Sections 420, 409, and 120B IPC related to an investment dispute in a multi-level marketing company. Finding that all involved parties had amicably settled their differences via a Settlement Agreement, the Court held no useful purpose would be served in continuing criminal proceedings.

What did the court decide?

FIR No. 0111/2022 dated 11.07.2022 and all consequential proceedings are quashed.

Praveen Kumar and Ors. Vs State and Ors. — Cheque Dishonour | Delhi HC (2024)

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$~48

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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- W.P.(CRL) 1537/2023, CRL.M.A. 14536/2023 (for interim relief)

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PRAVEEN KUMAR AND ORS .....Petitioners

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Through: Mr. D.K. Yati, Mr. Sahib Malhotra, Ms. Tamana Gupta, Mr. Sheikh, Md. Zaid, Mr. Arun and Mr. A. Jain, Advocates.

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versus

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STATE AND ORS .....Respondents Through: Mr. Amol Sinha, ASC (Crl.) for the State with Mr. Kshitiz Garg, Mr. Ashvini Kumar and Ms. Chavi Lazarus, Advocates with Inspector Laxman Kumar, EOW, Delhi.

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CORAM: HON'BLE MS. JUSTICE NEENA BANSAL KRISHNA

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O R D E R 20.09.2024

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The present Petition under Article 226 of the Constitution of India read with Section 482 of the Code of Criminal Procedure (hereinafter referred to as ‘CrPC, 1973’) has been filed on behalf of the petitioners seeking to quash the FIR No. 0111/2022 dated 11.07.2022 for the offence under Sections 420/409/120B of the Indian Penal Code (hereinafter referred to as ‘IPC, 1860’) registered at Police Station Economic Offences Wing and all consequential proceedings emanating therefrom.

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Issue notice.

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Mr. Amol Sinha, learned Additional Standing Counsel (Crl.)

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This is a digitally signed order.

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The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 04/07/2025 at 04:20:55

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appearing on advance notice, accepts notice on behalf of the State.

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Briefly stated that the petitioners are the directors, representatives, investors of the Company namely M/s Next Generation Deals Pvt. Ltd., a Company registered under the Company Act having its Registered Officer at H-54, Site-IV, Kasna Industrial Area Greater Noida, U.P., the said company is a Multi Level Marketing Company. The respondent No. 2 was convinced to invest in the said Company and was ready to bring in more investors for the Company. On 07.01.2019, the respondent No. 2 received the plan offered by the petitioners and they commenced as per their agreed terms and conditions. Thereafter, the monetary, financial investment disputes and differences arose between the petitioners and the respondent No. 2.

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On the complaint of the respondent No.2, an FIR 0111/2022 dated 11.07.2022 for the offence under Sections 420/409/120B of IPC, has been registered at Police Station Economic Offences Wing alleging therein that the petitioners are not making payment returns to the respondent No. 2. 6. It is submitted that the parties have amicably settled all the disputes and differences and entered into a Settlement Agreement dated 15.02.2023 vide which the 20 complainants together have agreed to accept Rs.10,00,000/- as full and final settlement of their cumulative amount due to them. Rs.5,00,000/- already stands paid to Ms. Alka Siwal, for and on behalf of all the complainants. All have been identified by the Investigating Officer. They all endorsed the terms of the Settlement whereby they have accepted cumulative Rs.10,00,000/- towards settlement of their claims. They all also endorsed and agreed that Rs.5,00,000/- have already been received by them, through Ms. Alka Siwal. The balance sum of Rs.5,00,000/- have been paid today to Ms. Alka Siwal, for and on behalf of all the victims. Ms.

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This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 04/07/2025 at 04:20:55

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Alka Siwal, who is present in the Court, submits that earlier, Rs.5,00,000/have already been equitably distributed and this amount shall also be equally distributed amongst all the victims. It was inter alia settled between the parties that they shall not initiate any legal proceedings against each other. 7. In view of the Settlement Agreement dated 15.02.2023, the present Petition has been filed.

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However, there are 20 complainants in the present case. All are present physically or through video-conferencing and have been identified by their counsel and Investigating Officer concerned. The parties have endorsed the amicable settlement and accepted the terms thereof voluntarily. 9. The parties have submitted that all the disputes have been amicably settled vide Settlement Agreement dated 15.02.2023 and thus, no fruitful purpose will be served in continuing with the FIR. 10. The present Petition has been signed by all the parties and is supported by their respective affidavits. The parties have reaffirmed the terms of the Settlement arrived at Settlement Agreement dated 15.02.2023 and they also submit that the said Settlement Agreement dated 15.02.2023 has been arrived at between the parties, without any pressure and coercion. 11. Today, the complainants, who are present in the Court, states that they have no objection if the FIR is quashed. 12. In view of the above facts that the parties have amicably resolved their differences out of their own free will and without any coercion, I am of the opinion that no useful purpose will be served in continuing with the proceedings, rather the same would create further acrimony between them. Hence, it would be in the interest of justice to quash the abovementioned FIR and the proceedings pursuant thereto.

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Moreover, there is no legal impediment in quashing the FIR in question.

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Accordingly, FIR No. 0111/2022 dated 11.07.2022 for the offence under Sections 420/409/120B of IPC, registered at Police Station Economic Offences Wing and all consequential proceedings emanating therefrom are quashed.

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The petition stands disposed of. The pending application also stands disposed of.

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NEENA BANSAL KRISHNA, J

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SEPTEMBER 20, 2024/RS

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This is a digitally signed order.

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The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 04/07/2025 at 04:20:55

Praveen Kumar and Ors. v. State and Ors.

Case brief

What is this about?

What did the court decide?

Praveen Kumar and Ors. v. State and Ors.

Case brief

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