After Complainant Agrees to ₹20 Lakh Settlement, Karnataka HC Quashes Cheating and Criminal Breach of Trust Case Against Accused No. 1

The petitioner, accused No. 1, sought to quash Crime No. 388/2025, registered by Byadarahalli Police Station for offences under Sections 409, 420 and 506 of the IPC and pending before the Chief Judicial Magistrate, Bengaluru Rural District.

The petitioner and the second respondent/complainant settled their dispute for ₹20,00,000.

The complainant acknowledged receipt of ₹5,00,000 and accepted a demand draft for the remaining ₹15,00,000; he also filed an affidavit giving voluntary consent and no objection to quashing the proceedings against the petitioner.

Both sides sought permission to compound the offences.

The petition invoked the High Court’s inherent jurisdiction under Section 482 of the Code of Criminal Procedure, 1973, corresponding to Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, to seek quashing of the criminal proceedings.

The alleged offences were under Sections 409, 420 and 506 IPC.

The Court applied its inherent jurisdiction to accept the parties’ settlement and quash the proceedings; it cited no statutory compounding provision or precedent in its order.

The Court noted that the dispute was between individuals, that the petitioner had paid the agreed settlement amount, and that the complainant had voluntarily consented to quashing.

In those circumstances, it considered it appropriate to accept the settlement and “obliterate” the crime against the petitioner.

The order does not separately analyse the elements of the alleged offences or set out a broader test for quashing on settlement.

I.A. No. 1/2026 was also disposed of as a consequence.