High Court may quash non-heinous cheating and theft proceedings upon amicable settlement and bleak conviction prospects.

The petitioner invoked the inherent jurisdiction of the High Court under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, seeking quashing of the entire criminal proceeding, including Korrah P.S. Case No. 34 of 2021, registered for offences under Sections 420 and 379 of the Indian Penal Code.

The investigation was pending and no charge-sheet had been submitted.

During the pendency of the petition, the petitioner and the informant settled their dispute through the intervention of common friends and well-wishers. The informant stated that he was no longer interested in pursuing the case.

The State expressed no objection to the petition in view of the compromise.

Whether the High Court should exercise its inherent jurisdiction under Section 528 of the BNSS, 2023, to quash the FIR and criminal proceeding arising from offences under Sections 420 and 379 IPC on the basis of a settlement between the parties?

Whether, in view of the compromise and the private nature of the dispute, the possibility of conviction was remote and continuation of the criminal proceeding would amount to an abuse of process or cause injustice to the petitioner?

The Court exercised its inherent jurisdiction under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, to prevent abuse of the process of law and secure the ends of justice.

It relied on Parbatbhai Aahir v. State of Gujarat, (2017) 9 SCC 641, which restated the principles in Gian Singh v. State of Punjab, (2012) 10 SCC 303, that the High Court may quash criminal proceedings involving predominantly civil, commercial, financial, or otherwise private disputes when the parties have completely settled their differences and the possibility of conviction is remote and bleak. However, heinous offences, offences involving serious mental depravity, offences affecting society at large, and offences under special statutes ordinarily should not be quashed merely on the basis of compromise.

The Court found that the alleged offences were neither heinous nor indicative of serious mental depravity and that the criminal case arose from a misunderstanding between the parties.

Since the dispute had been amicably resolved and the informant no longer wished to pursue the prosecution, the possibility of conviction was considered remote and bleak. Applying the principles in Parbatbhai Aahir and Gian Singh, the Court held that continuation of the proceeding would cause hardship to the petitioner and would not serve the ends of justice. The settlement therefore justified exercise of the Court’s inherent power to terminate the prosecution.

The entire criminal proceeding, including the FIR in Korrah P.S. Case No. 34 of 2021, registered under Sections 420 and 379 IPC, was quashed and set aside qua the petitioner. The criminal miscellaneous petition was allowed, and Interlocutory Application No. 12150 of 2026 was disposed of.