Case Note & Summary
The petitioners, Vasantbhai Haribhai Gajera and others, filed petitions under Article 226 of the Constitution of India read with Section 528 of the BNSS, 2023, seeking quashing of FIR No.11210015260005 of 2026 registered with DCB Police Station, Surat, dated 22.02.2026. The FIR alleged offences under Sections 409, 465, 467, 468, 471, 474, 386, 389, 120(B), 34, and 506(2) of the IPC. The allegations were that the petitioners had siphoned away Rs. 1,900 crores from the company, routed the money back through Hongkong, and forged signatures of the first informant, his wife, and his father on certain documents. The petitioners argued that the dispute was purely civil in nature, arising from family business disagreements, and that criminal proceedings were being used as a tool for recovery. The Court, after hearing the parties, found that the allegations lacked criminal intent and were essentially civil disputes. The Court held that continuing criminal proceedings would be an abuse of process of law and quashed the FIR and all proceedings arising therefrom. The Court also noted that the petitioners had been granted interim protection by the Supreme Court. The judgment was delivered by Honourable Mr. Justice M. R. Mengdey on 11/03/2026.
Headnote
A) Criminal Law - Quashing of FIR - Civil vs. Criminal Dispute - Sections 409, 465, 467, 468, 471, 474, 386, 389, 120(B), 34, 506(2) IPC read with Article 226 of Constitution of India and Section 528 BNSS, 2023 - The petitioners sought quashing of FIR alleging siphoning of Rs. 1,900 crores and forgery. The Court held that the dispute was primarily civil in nature, arising from family business disagreements, and lacked criminal intent. The FIR was quashed to prevent abuse of process of law. (Paras 1-23) B) Criminal Law - Abuse of Process - Criminal proceedings cannot be used as a tool for recovery of civil dues - The Court observed that the allegations of forgery and criminal breach of trust were not supported by sufficient evidence of criminal intent, and the matter was essentially a civil dispute between family members. (Paras 4-15) C) Criminal Procedure - Quashing of FIR - Article 226 of Constitution of India and Section 528 BNSS, 2023 - The Court exercised its inherent powers to quash the FIR as the continuation of proceedings would be an abuse of process of law. (Paras 2, 23)
Issue of Consideration
Whether the FIR alleging offences under Sections 409, 465, 467, 468, 471, 474, 386, 389, 120(B), 34, 506(2) of IPC should be quashed as the dispute is primarily civil in nature and lacks criminal intent.
Final Decision
The Court quashed and set aside FIR No.11210015260005 of 2026 registered with DCB Police Station, Surat, and all proceedings arising therefrom.
Law Points
- Criminal proceedings cannot be used as a tool for recovery of civil dues
- Dispute primarily civil in nature
- Absence of criminal intent
- Quashing of FIR under Article 226 and Section 528 BNSS
- 2023
