Cheating and breach-of-trust FIR may be quashed upon full settlement and restitution to the complainant.

Respondent No. 2 alleged that the petitioner induced him to invest ₹60 lakh in a property, promising him a share in its second floor.

After learning that the floor had been sold to another person, respondent No. 2 confronted the petitioner, who issued four cheques totalling ₹42.5 lakh; the cheques were dishonoured.

An FIR was registered under Sections 420 and 406 IPC, and a chargesheet was filed.

During the proceedings, the parties executed a settlement deed dated 24 September 2026, under which the petitioner agreed to pay ₹60 lakh in full and final settlement. The amount was paid, and respondent No. 2 stated that he did not wish to pursue the matter.

Whether the FIR and consequential proceedings under Sections 420 and 406 IPC should be quashed in view of the parties’ settlement and payment of the agreed amount.

Whether quashing should be made subject to payment of costs.

The petition invoked the High Court’s inherent jurisdiction under Section 482 CrPC or Section 528 BNSS to seek quashing of the FIR and consequential proceedings.

The FIR alleged offences under Sections 420 and 406 IPC.

The judgment cites no precedent or elaborated legal test for quashing on settlement; it records the Court’s determination that, in the circumstances, there was no impediment to allowing the petition.

The Court noted that the parties had resolved their dispute through a written settlement, the petitioner had paid the full ₹60 lakh, and respondent No. 2 confirmed receipt and his wish not to pursue the case.

In light of those circumstances, the Court found no impediment to quashing the FIR and consequential proceedings.

The State sought costs, citing the FIR’s date and the nature of the offences; the Court made quashing conditional on payment of ₹20,000 to the Delhi High Court Legal Services Committee.

The order was subject to the petitioner paying ₹20,000 in costs to the Delhi High Court Legal Services Committee within two weeks and submitting proof of payment to the Court and the concerned IO/SHO.