Bombay High Court Allows Quashing of FIR in Cheating Case Due to Settlement. Commercial Dispute Resolved Amicably Leads to Termination of Criminal Proceedings Under Sections 406 and 420 IPC.

High Court: Bombay High Court Bench: GOA In Favour of Accused
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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)

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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.

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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
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Case Details

2018 LawText (BOM) (08) 217

Criminal Writ Petition No.131 of 2018

2018-08-06

Shantanu S. Kemkar, N.M. Jamdar

2018:BHC-GOA:1895-DB

Mr. Vibhav Rajiv Amonkar for Petitioner, Mr. S.R. Rivankar for Respondent Nos.1 and 2, Mr. S. Redkar for Respondent No.3

Ajju C.S. Sindolli

State of Goa, The Police Inspector, Economic Offences Cell, Panaji, Goa, Atmaram Mukund Joshi

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Nature of Litigation

Criminal writ petition under Section 482 CrPC for quashing of FIR

Remedy Sought

Quashment of FIR No.110/2018 registered for offences under Sections 406 and 420 IPC

Filing Reason

Settlement between the petitioner and the complainant after the petitioner returned the amount

Issues

Whether the FIR can be quashed in view of the settlement between the parties

Submissions/Arguments

Petitioner and complainant submitted that the dispute was commercial in nature and settled amicably; complainant received the amount back and had no grievance

Ratio Decidendi

When the parties have amicably settled a commercial dispute and the complainant has received the amount back, continuation of criminal proceedings is unwarranted, and the FIR can be quashed under Section 482 CrPC.

Judgment Excerpts

In view of the compromise/settlement between the parties, the Petitioner has filed this petition for quashment of the said F.I.R. It has been specifically stated that the Petitioner has returned the amount of Rs.3,00,000/- to him and, therefore, he is not desirous to continue the said criminal proceeding against the Petitioner.

Procedural History

On 31 May 2018, FIR No.110/2018 was registered against the petitioner. The petitioner filed Criminal Writ Petition No.131 of 2018 under Section 482 CrPC seeking quashment. The court heard the matter and delivered judgment on 6 August 2018.

Acts & Sections

  • Code of Criminal Procedure, 1973: 482
  • Indian Penal Code, 1860: 406, 420
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High Court Bombay High Court Allows Quashing of FIR in Cheating Case Due to Settlement. Commercial Dispute Resolved Amicably Leads to Termination of Criminal Proceedings Under Sections 406 and 420 IPC.
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