After Borrower Repays ₹15,000 Principal And Settles With Lenders, Gujarat HC Quashes Money-Lending FIR

The petitioners sought quashing of FIR CR No. 11203012260434/2026, registered at Chorwad Police Station for offences under Sections 5, 33 and 42 of the Gujarat Money Lenders Act and Section 3(5) of the Bharatiya Nyaya Sanhita (BNS)

The complainant filed an affidavit stating that the dispute was private, that he had repaid the principal sum of ₹15,000, and that the parties had settled their differences and he had no objection to quashing the FIR

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

The Court considered the offences alleged under Sections 5, 33 and 42 of the Gujarat Money Lenders Act and Section 3(5) of the BNS

It relied on Gian Singh v. State of Punjab, Rajesh Natwarlal Agrawal v. State of Gujarat, 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

Applying the settlement-quashing principles cited in those decisions, the Court treated an amicable settlement in a private dispute, together with the complainant’s no-objection affidavit, as grounds to quash proceedings where their continuation would amount to an abuse of process and quashing would secure the ends of justice

The Court considered the complainant’s affidavit confirming repayment of the principal amount, settlement of the dispute and consent to quashing

Although the State objected on grounds of seriousness, the Court found that the dispute had been amicably resolved and that continuing the prosecution would serve no fruitful purpose and would amount to an abuse of process

Relying on the cited authorities, it concluded that quashing was appropriate to secure the ends of justice

quashed FIR CR No. 11203012260434/2026, registered at Chorwad Police Station, Junagadh, together with all consequential proceedings, insofar as they concerned the petitioners.