Bombay High Court Quashes FIR in Cheque Dishonour Case Due to Settlement Between Parties — Compromise Reached Under Section 138 of Negotiable Instruments Act, 1881

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
  • 28
Judgement Image
Font size:
Print

Case Note & Summary

The petitioners filed a criminal writ petition under Articles 226 and 227 of the Constitution of India read with Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of FIR No. 123 of 2017 registered at Ambajogai City Police Station for offences under Sections 406, 420, 467, 468, 471, 120-B of the Indian Penal Code, 1860 and Section 138 of the Negotiable Instruments Act, 1881. The respondent No.2 (complainant) had lodged the FIR alleging that the petitioners had cheated him in a construction business transaction. During the pendency of the petition, the parties entered into a compromise and the complainant filed an affidavit stating that he had no objection to the quashing of the FIR. The court, considering the nature of the dispute as primarily civil and the fact that the parties had settled the matter, held that continuing the criminal proceedings would be an abuse of the process of law. The court allowed the petition and quashed the FIR and all consequential proceedings.

Headnote

A) Criminal Procedure Code - Quashing of FIR - Compromise - Sections 482 CrPC - The petitioners sought quashing of FIR registered for various offences including cheating and forgery, based on a settlement with the complainant. The court held that since the dispute was primarily of a civil nature and the parties had amicably settled the matter, continuing criminal proceedings would be an abuse of process of law. The FIR and subsequent proceedings were quashed. (Paras 1-10)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the FIR registered for offences under Sections 406, 420, 467, 468, 471, 120-B of IPC and Section 138 of Negotiable Instruments Act can be quashed on the basis of settlement between the parties.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The petition is allowed. FIR No. 123 of 2017 registered at Ambajogai City Police Station and all consequential proceedings are quashed.

Law Points

  • Quashing of FIR
  • Compromise in criminal cases
  • Section 138 Negotiable Instruments Act
  • 1881
  • Inherent powers under Section 482 CrPC
Subscribe to unlock Law Points Subscribe Now

Case Details

2018 LawText (BOM) (04) 30

Criminal Writ Petition No. 394 of 2018

2018-04-06

Prasanna B. Varale, Smt. Vibha Kankanwadi

Mr. P. N. Nagargoje for petitioners, Mr. S. W. Munde, Additional Public Prosecutor for respondent No. 1 / State, Mr. N. S. Desale for respondent No.2

Vaijnath Laxman Phad and others

The State of Maharashtra and Pavan Giridharilal Bharadiya

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Criminal writ petition for quashing of FIR

Remedy Sought

Quashing of FIR No. 123 of 2017 and all consequential proceedings

Filing Reason

Allegations of cheating, forgery, and dishonour of cheque in a construction business transaction

Issues

Whether the FIR can be quashed on the basis of settlement between the parties

Submissions/Arguments

Petitioners argued that the dispute is civil in nature and has been settled amicably. Respondent No.2 (complainant) filed an affidavit stating no objection to quashing.

Ratio Decidendi

When the dispute is primarily of a civil nature and the parties have amicably settled the matter, continuing criminal proceedings would be an abuse of the process of law, and the FIR can be quashed under Section 482 CrPC.

Judgment Excerpts

Present petition has been filed for quashing of First Information Report (hereinafter referred to as 'FIR') by invoking the inherent powers of this Court under Section 226, 227, 14 and 21 of the Constitution of India.

Procedural History

The petitioners filed Criminal Writ Petition No. 394 of 2018 before the Bombay High Court, Aurangabad Bench, seeking quashing of FIR No. 123 of 2017. During the pendency, the parties settled the dispute, and the complainant filed an affidavit of no objection. The court heard the matter and passed the judgment on 06-04-2018.

Acts & Sections

  • Constitution of India: 226, 227
  • Code of Criminal Procedure, 1973: 482
  • Indian Penal Code, 1860: 406, 420, 467, 468, 471, 120-B
  • Negotiable Instruments Act, 1881: 138
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Allows Challenge to Property Tax Demands on Mobile Towers in Part. Conservancy Tax, Penalty, and Shasti on Illegal Constructions Quashed as Invalid Under Maharashtra Municipal Corporations Act.
Related Judgement
High Court Bombay High Court Quashes FIR in Cheque Dishonour Case Due to Settlement Between Parties — Compromise Reached Under Section 138 of Negotiable Instruments Act, 1881