Case Note & Summary
The petitioner, Ajju C.S. Sindolli, filed a criminal writ petition under Section 482 of the Code of Criminal Procedure, 1973, seeking quashment of FIR No.110/2018 registered at the Economic Offences Cell, Panaji, Goa, for offences under Sections 406 and 420 of the Indian Penal Code. The FIR was based on a complaint by the third respondent, Atmaram Mukund Joshi, alleging that on 1 May 2018, the petitioner had taken four fixed deposit receipts totaling Rs.3,00,000 from the complainant with a promise to double the amount, but instead encashed them and did not return the money. Subsequently, the parties amicably settled the dispute, and the petitioner returned the full amount of Rs.3,00,000 to the complainant. The third respondent filed a reply confirming the settlement and stating that he had no grievance against the petitioner. Both parties submitted that the dispute was commercial in nature and that continuation of criminal proceedings was unwarranted. The court, relying on the Supreme Court judgment in Parbatbhai Aahir Alias Parbatbhai v. State of Gujarat, held that in view of the settlement, the FIR and all proceedings arising therefrom deserved to be quashed. The court allowed the petition, quashed the FIR, and disposed of the rule accordingly.
Headnote
A) Criminal Procedure Code - Quashing of FIR - Section 482 CrPC - Settlement - The court considered whether an FIR for offences under Sections 406 and 420 IPC can be quashed on the basis of a settlement between the parties. The dispute was commercial in nature and the complainant had received the amount back. The court held that continuation of criminal proceedings would be unwarranted and quashed the FIR. (Paras 2-7)
Issue of Consideration
Whether an FIR registered for offences under Sections 406 and 420 of the Indian Penal Code can be quashed under Section 482 of the Code of Criminal Procedure, 1973, in view of a settlement between the complainant and the accused.
Final Decision
The petition is allowed. FIR No.110/2018 registered at Police Station (Economic Offences Cell), Panaji, Goa, for offences under Sections 406 and 420 of the Indian Penal Code, and all proceedings arising therefrom, are quashed. Rule is made absolute accordingly.
Law Points
- Settlement between parties
- commercial dispute
- quashing of FIR
- Section 482 CrPC
- Sections 406 and 420 IPC





