Gujarat High CourtCriminal Procedure and EvidenceContract Law

Gujarat HC Quashes Criminal-Breach-of-Trust FIR After Parties Settle Business Dispute For ₹8 Lakh

PRADEEP RATANLAL PAREEK (PRADEEP RATANLAL PAREKH)v.STATE OF GUJARAT

Gujarat HC Quashes Criminal-Breach-of-Trust FIR After Parties Settle Business Dispute For ₹8 Lakh. PRADEEP RATANLAL PAREEK (PRADEEP RATANLAL PAREKH) vs STATE OF GUJARAT. Gujarat High Court. LawLens
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In brief

The question

Whether the High Court should exercise its inherent jurisdiction to quash the FIR and consequential proceedings where the parties have amicably settled the underlying commercial dispute and the complainant consents to quashing.

The court held

The Court allowed the petition and quashed FIR No. 11191025260600 of 2026, together with the Criminal Case and all consequential proceedings arising from it, insofar as they concerned the petitioner.

It also directed

The Rule was made absolute.

01Facts

The petitioner sought quashing of FIR No. 11191025260600 of 2026, registered at Kagadapith Police Station, Ahmedabad, for offences under Sections 316(2) and 316(4) of the Bharatiya Nyaya Sanhita, 2023.

pp. 2–4

The FIR arose from a commercial dispute between the petitioner and respondent No. 2, the complainant.

pp. 2–4

The complainant filed an affidavit stating that the parties had settled the dispute for ₹8,00,000 in full and final satisfaction of the outstanding dues, and consented to quashing the FIR.

pp. 2–4

The State opposed the petition, arguing that the allegations were serious.

pp. 2–4

02Issues

i.Whether the High Court should exercise its inherent jurisdiction to quash the FIR and consequential proceedings where the parties have amicably settled the underlying commercial dispute and the complainant consents to quashing.

pp. 2–5

ii.Whether continuing the criminal proceedings despite the settlement would amount to unnecessary harassment or an abuse of the process of law.

p. 5

03Law Applied

The petition invoked Articles 14, 226 and 227 of the Constitution of India and Section 482 of the Code of Criminal Procedure, 1973, as the basis for seeking quashing.

pp. 2–5

The Court considered Sections 316(2) and 316(4) of the Bharatiya Nyaya Sanhita, 2023, under which the FIR had been registered.

pp. 2–5

It relied on Gian Singh v. State of Punjab, Madan Mohan Abbot v. State of Punjab, Nikhil Merchant v. Central Bureau of Investigation, Manoj Sharma v. State, Narinder Singh v. State of Punjab and State of Haryana v. Bhajan Lal in considering whether proceedings may be quashed following settlement and to secure the ends of justice.

pp. 2–5

Provisions in the judgment · 2 · Linked ones open on LawLens

Code of Criminal Procedure, 1973 Section 482

Bharatiya Nyaya Sanhita, 2023 Section 316

04Reasoning

The Court treated the dispute as arising from a commercial transaction and noted the complainant’s affidavit confirming full and final settlement, payment of the outstanding dues, and voluntary consent to quashing.

pp. 3–5

Although the State characterized the allegations as serious, the Court concluded that, in light of the settlement and the cited authorities, continuing the prosecution would unnecessarily harass the petitioner, make the trial futile, and amount to an abuse of process.

pp. 3–5

05Holding

The Court allowed the petition and quashed FIR No. 11191025260600 of 2026, together with the Criminal Case and all consequential proceedings arising from it, insofar as they concerned the petitioner.

p. 5

The Rule was made absolute.

p. 5
Gujarat High Court

Original Court PDF

PRADEEP RATANLAL PAREEK (PRADEEP RATANLAL PAREKH)vsSTATE OF GUJARAT

Gujarat High Court · October 28, 2026

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