Case Note & Summary
The applicant, Sanjay Jivrajbhai Satodiya, filed a criminal miscellaneous application under Section 482 of the Code of Criminal Procedure, 1973 before the Gujarat High Court seeking quashment of FIR No. 16543 of 2022 registered with DCB Police Station, Surat, for offences punishable under Sections 406, 420, 465, 467, 468, 471 and 120B of the Indian Penal Code, 1860. The FIR was lodged by Yes Bank against 21 accused persons alleging that they created false documents relating to hypothecation of non-existent vehicles, produced false valuation reports and forged chassis numbers to avail loan facilities. The applicant was arraigned as accused No. 12. The charge-sheet had already been filed. The applicant's counsel, Mr. Chintan Gandhi, submitted that the entire loan amount had been repaid and the complainant bank had issued a No Due Certificate. The learned APP, Mr. Ronak Raval, opposed the application. The court considered the submissions and held that since the loan amount had been fully repaid and the bank had issued a No Due Certificate, the continuation of criminal proceedings would be an abuse of the process of law. The court quashed the FIR and all consequential proceedings including the charge-sheet against the applicant.
Headnote
A) Criminal Procedure Code - Quashing of FIR - Section 482 CrPC - Abuse of Process - Where the loan amount has been fully repaid and the complainant bank has issued a No Due Certificate, continuation of criminal proceedings for cheating and forgery would be an abuse of process of law. The court quashed the FIR and charge-sheet against the applicant. (Paras 1-9) B) Indian Penal Code - Cheating and Forgery - Sections 406, 420, 465, 467, 468, 471, 120B IPC - Settlement - Full repayment of loan and issuance of No Due Certificate by the bank indicates that the dispute is purely civil in nature and criminal proceedings are not warranted. The court allowed the quashing application. (Paras 1-9)
Issue of Consideration
Whether the FIR and charge-sheet for offences under Sections 406, 420, 465, 467, 468, 471 and 120B of IPC should be quashed when the loan amount has been fully repaid and the complainant bank has issued a No Due Certificate.
Final Decision
The application is allowed. The FIR being I-CR No. 16543 of 2022 registered with DCB Police Station, Surat and all consequential proceedings including the charge-sheet are quashed and set aside qua the applicant.
Law Points
- Quashing of FIR
- Abuse of process of law
- Full repayment
- No Due Certificate
- Section 482 CrPC
- Criminal proceedings after settlement
