Criminal proceedings quashed where the mortgaged tractor remained with its owners and the bank loan was fully repaid.

The Bank alleged that a tractor purchased by borrower Rupa with a loan of ₹4,50,000 had been sold to an unknown person while the loan remained unpaid.

An FIR was registered under Sections 406 and 120-B IPC, followed by a charge sheet dated 29 February 2020 and a summoning order dated 4 December 2020.

Sompal Singh, who asserted that he was only a guarantor, sought quashing under Section 482 CrPC.

During the proceedings, the investigating officer reported that the tractor had been inspected at the registered owners’ residence and its identifying numbers matched the registration record.

The Bank also confirmed that the entire loan had been paid.

1. Whether, in light of the tractor being found with its registered owners and the loan being fully repaid, continuation of the criminal proceedings against the applicant was warranted

2. Whether the charge sheet, summoning order and proceedings against the applicant should be quashed under Section 482 CrPC

Section 482 of the Code of Criminal Procedure, 1973 preserves the High Court’s inherent power to make orders necessary to give effect to the Code, prevent abuse of the process of a court, or otherwise secure the ends of justice.

The alleged offences were under Sections 406 and 120-B of the Indian Penal Code, 1860; the Court considered whether the factual basis for those proceedings remained sustainable.

No judicial precedents were cited or applied in the judgment.

The prosecution rested on allegations that the mortgaged tractor had been sold to an unknown person and that the Bank’s loan remained unpaid.

The investigating officer’s verification showed that the tractor remained with its registered owners and that its chassis and engine numbers matched the registration record; the State did not dispute this finding.

The Bank likewise confirmed full repayment.

On these circumstances, the Court held that the central factual basis of the prosecution was undermined and that continuing proceedings against the applicant would serve no useful purpose.

Pending applications were also disposed of.