After ₹37 Lakh Settlement, Gujarat HC Quashes Cheating And Breach-of-Trust FIR In Nandan Denim Dispute

An FIR, C.R. No. I-167/2019, was registered at Narol Police Station against the petitioners for alleged offences under Sections 406, 420 and 114 of the Indian Penal Code (IPC).

The petitioners sought to quash the FIR and consequential proceedings, stating that the dispute had been amicably settled.

The complainant confirmed the settlement, stated that the petitioners had paid a full and final amount of ₹37,00,000, and consented to quashing.

The State opposed the petition, relying on the seriousness of the allegations.

The petition invoked Articles 14, 226 and 227 of the Constitution and Section 482 of the Code of Criminal Procedure, 1973, as the bases for the High Court’s jurisdiction to grant relief.

The alleged offences were under Sections 406, 420 and 114 IPC.

The Court relied on Gian Singh v. State of Punjab, Madan Mohan Abbot v. State of Punjab, Nikhil Merchant v. CBI, Manoj Sharma v. State, Narinder Singh v. State of Punjab and State of Haryana v. Bhajan Lal in considering whether criminal proceedings should be quashed following an amicable settlement.

The Court considered the complainant’s affidavit confirming the settlement and payment of ₹37,00,000, as well as the complainant’s no-objection to quashing.

Applying the cited authorities, it concluded that, in the circumstances, continuing the proceedings would unnecessarily harass the petitioners, that a further trial would be futile, and that continuation would amount to an abuse of process.

The Court therefore considered quashing necessary to secure the ends of justice.

It quashed C.R. No. I-167/2019, the subsequent criminal proceedings and all consequential proceedings arising from it, insofar as they concerned the petitioners; the Rule was made absolute.