Allowed

Prashant Jain and Others v. the State Gnct of Delhi and Others

Delhi HC12 Jul 2024CRL.M.C./5295/2024

Case brief

AI extract

What is this about?

Held that an FIR under IPC sections for cheating and forgery arising from a commercial loan dispute is quashable in the High Court under Section 482 CrPC due to a private settlement, provided ends of justice are served without undermining public interest.

What did the court decide?

FIR No. 16/2010 and all consequential proceedings quashed subject to payment of costs of Rs. 30,000/- by petitioners, Rs. 15,000/- to Police Welfare Society and Rs. 15,000/- to DHC Legal Services Comm

Prashant Jain and Others Vs the State Gnct of Delhi and Others — Cheque Dishonour | Delhi HC (2024)

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$~74

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* IN THE HIGH COURT OF DELHI AT NEW DELHI

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- CRL.M.C. 5295/2024 & CRL.M.A. 20256/2024

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PRASHANT JAIN AND OTHERS .....Petitioners Through: Mr. S. K. Gandhi, Adv. All the petitioners in person.

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versus

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THE STATE GNCT OF DELHI AND OTHERS .....Respondents Through: Mr. Ajay Vikram Singh, APP for the State with Mr. Anil Panwar, Ms. Nidhi Agnihotri, Ms. Anamika Singhal and Ms. Mridalini Choubey, Advs. with SI Lakhan, PS EOW. R-2 in person.

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CORAM: HON'BLE MR. JUSTICE AMIT MAHAJAN O R D E R % 12.07.2024

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CRL.M.A. 20255/2024 (exemption from filing the certified copies of the annexures)

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Exemption allowed, subject to all just exceptions.

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The application stands disposed of.

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CRL.M.C. 5295/2024 & CRL.M.A. 20256/2024

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The present petition is filed under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 ( BNSS ), seeking quashing of FIR No. 16/2010 dated 27.01.2010, for offences punishable under Sections 420/467/468/471/120B of the Indian Penal Code, 1860 (‘ IPC ’), registered at Police Station EOW Cell,

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CRL.M.C. 5295/2024

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Page 1 of 7

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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 02/08/2024 at 11:33:38

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including all consequential proceedings arising therefrom. The said FIR was registered on a complaint filed by Respondent No. 2.

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Charge sheet has already been filed in the present case for offences under Sections 420/467/468/471/120B/174A of the IPC. 3. It is alleged that the petitioners had fraudulently obtained a loan of ₹72,10,000/- from ICICI Bank against property bearing No. 8/7, Road No. 18, Punjabi Bagh Extn., New Delhi, which was owned by the complainant’s father.

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The present petition is filed on the ground that the matter is amicably settled between the parties before the Delhi Mediation Centre, Tis Hazari Courts, Delhi on 19.10.2015, on their own free will, without any fear, force, coercion or undue influence.

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The learned counsel for the petitioner submits that the entire money of the bank has also been refunded and the said fact has also been verified by the State, which is reflected in the Status Report filed by the State before this Court in CRL.M.C. 227/2021.

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All the petitioners and Respondent No. 2 are present in person in Court today, and they have been duly identified by the Investigating Officer.

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The complainant states that he does not wish to pursue any proceeding arising out of the present FIR. He states that he is satisfied with the amount received pursuant to the settlement and has no objection if the present FIR is quashed.

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Offence under Section 420 of the IPC is compoundable whereas offences under Sections 467/468/471/174A of the IPC are non-compoundable.

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It is well settled that the High Court while exercising its

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CRL.M.C. 5295/2024

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powers under Section 482 of the CrPC can compound offences which are non-compoundable under the Code on the ground that there is a compromise between the accused and the complainant. The Hon’ble Apex Court has laid down parameters and guidelines for High Court while accepting settlement and quashing the proceedings. In the case of Narinder Singh & Ors. v. State of Punjab & Anr. : (2014) 6 SCC 466 , the Hon’ble Supreme Court had observed as under :-

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“29. In view of the aforesaid discussion, we sum up and lay down the following principles by which the High Court would be guided in giving adequate treatment to the settlement between the parties and exercising its power under Section 482 of the Code while accepting the settlement and quashing the proceedings or refusing to accept the settlement with direction to continue with the criminal proceedings:

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29.1. Power conferred under Section 482 of the Code is to be distinguished from the power which lies in the Court to compound the offences under Section 320 of the Code. No doubt, under Section 482 of the Code, the High Court has inherent power to quash the criminal proceedings even in those cases which are not compoundable, where the parties have settled the matter between themselves. However, this power is to be exercised sparingly and with caution.

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29.2. When the parties have reached the settlement and on that basis petition for quashing the criminal proceedings is filed, the guiding factor in such cases would be to secure:

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(i) ends of justice, or

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(ii) to prevent abuse of the process of any court.

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While exercising the power the High Court is to form an opinion on either of the aforesaid two objectives.

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Page 3 of 7

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CRL.M.C. 5295/2024

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29.3. Such a power is not to be exercised in those prosecutions which involve heinous and serious offences of mental depravity or offences like murder, rape, dacoity, etc. Such offences are not private in nature and have a serious impact on society. Similarly, for the offences alleged to have been committed under special statute like the Prevention of Corruption Act or the offences committed by public servants while working in that capacity are not to be quashed merely on the basis of compromise between the victim and the offender.

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29.4. On the other hand, those criminal cases having overwhelmingly and predominantly civil character, particularly those arising out of commercial transactions or arising out of matrimonial relationship or family disputes should be quashed when the parties have resolved their entire disputes among themselves.

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29.5. While exercising its powers, the High Court is to examine as to whether the possibility of conviction is remote and bleak and continuation of criminal cases would put the accused to great oppression and prejudice and extreme injustice would be caused to him by not quashing the criminal cases.”

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(emphasis supplied)

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Similarly , in the case of Parbatbhai Aahir & Ors. v. State of Gujarat & Anr. : (2017) 9 SCC 641 , the Hon’ble Supreme Court had observed as under :-

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“16. The broad principles which emerge from the precedents on the subject, may be summarised in the following propositions:

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16.1. Section 482 preserves the inherent powers of the High Court to prevent an abuse of the process of any court or to secure the ends of justice. The provision does not confer new powers. It only recognises and preserves

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Page 4 of 7

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CRL.M.C. 5295/2024

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powers which inhere in the High Court.

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16.2. The invocation of the jurisdiction of the High Court to quash a first information report or a criminal proceeding on the ground that a settlement has been arrived at between the offender and the victim is not the same as the invocation of jurisdiction for the purpose of compounding an offence. While compounding an offence, the power of the court is governed by the provisions of Section 320 of the Code of Criminal Procedure, 1973. The power to quash under Section 482 is attracted even if the offence is non-compoundable.

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16.3. In forming an opinion whether a criminal proceeding or complaint should be quashed in exercise of its jurisdiction under Section 482, the High Court must evaluate whether the ends of justice would justify the exercise of the inherent power.

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16.4. While the inherent power of the High Court has a wide ambit and plenitude it has to be exercised (i) to secure the ends of justice, or (ii) to prevent an abuse of the process of any court.

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16.5. The decision as to whether a complaint or first information report should be quashed on the ground that the offender and victim have settled the dispute, revolves ultimately on the facts and circumstances of each case and no exhaustive elaboration of principles can be formulated.

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16.6. In the exercise of the power under Section 482 and while dealing with a plea that the dispute has been settled, the High Court must have due regard to the nature and gravity of the offence. Heinous and serious offences involving mental depravity or offences such as murder, rape and dacoity cannot appropriately be quashed though the victim or the family of the victim have settled the dispute. Such offences are, truly speaking, not private in nature but have a serious impact

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CRL.M.C. 5295/2024

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upon society. The decision to continue with the trial in such cases is founded on the overriding element of public interest in punishing persons for serious offences.

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16.7. As distinguished from serious offences, there may be criminal cases which have an overwhelming or predominant element of a civil dispute. They stand on a distinct footing insofar as the exercise of the inherent power to quash is concerned.

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16.8. Criminal cases involving offences which arise from commercial, financial, mercantile, partnership or similar transactions with an essentially civil flavour may in appropriate situations fall for quashing where parties have settled the dispute.

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16.9. In such a case, the High Court may quash the criminal proceeding if in view of the compromise between the disputants, the possibility of a conviction is remote and the continuation of a criminal proceeding would cause oppression and prejudice; and

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16.10. There is yet an exception to the principle set out in propositions 16.8. and 16.9. above. Economic offences involving the financial and economic well-being of the State have implications which lie beyond the domain of a mere dispute between private disputants. The High Court would be justified in declining to quash where the offender is involved in an activity akin to a financial or economic fraud or misdemeanour. The consequences of the act complained of upon the financial or economic system will weigh in the balance.”

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(emphasis supplied)

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The FIR was not registered on complaint filed by the Bank. As noted above, the fact that the dues of the Bank have already been paid has been verified by the State.

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Keeping in view the nature of dispute and that the parties have amicably entered into a settlement, this Court feels that no

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CRL.M.C. 5295/2024

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useful purpose would be served by keeping the dispute alive and continuance of the proceedings would amount to abuse of the process of Court. I am of the opinion that this is a fit case to exercise discretionary jurisdiction under Section 482 of the CrPC.

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However, keeping in mind the fact that the charge sheet has already been filed in the case arising out of FIR No. 16/2010, and the State machinery has been put to motion, ends of justice would be served if the petitioner is put to cost.

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In view of the above, FIR No. 16/2010 and all consequential proceedings arising therefrom are quashed, subject to payment of cost of ₹30,000/- by the petitioners, out of which ₹15,000/- is to be deposited with the Delhi Police Welfare Society and ₹15,000/- is to be deposited with the Delhi High Court Legal Services Committee within a period of eight weeks from date.

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Let the proof of deposit of cost be submitted to the concerned IO.

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The present petition is allowed in the aforesaid terms.

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Pending application(s) also stand disposed of.

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AMIT MAHAJAN, J

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JULY 12, 2024 ‘KDK’

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CRL.M.C. 5295/2024

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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 02/08/2024 at 11:33:38

Prashant Jain and Others v. the State Gnct of Delhi and Others

Case brief

What is this about?

What did the court decide?

Prashant Jain and Others v. the State Gnct of Delhi and Others

Case brief

What is this about?

What did the court decide?

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