Bombay High Court
FATEHSINH MOHANSINH CHAUHAN PROP. M/S. HAVELI ENTERPRISES AND ANRversusTHE UNION TERRITORY OF DADRA AND NAGAR HAVELI AND DAMAN AND DIU
- Decided
- Disposal
- Allowed
Holding
The High Court allowed the consent quashing of the FIR, charge‑sheet and special case and imposed costs on the applicants.
Summary
The applicants, Haveli Enterprises and others, sought consent quashing of FIR No. 186 of 2017, charge‑sheet No. 74 of 2018 and Special Case (SC/ST) No. 3 of 2018 pending before the Special Court in Dadra and Nagar Haveli. The complainant (Respondent No.2) filed an affidavit indicating that the parties had settled their dispute and had no grievance, requesting the High Court to quash the criminal proceedings. The Court, invoking its inherent powers under Section 482 of the Criminal Procedure Code, 1973 and Section 528 of the BNSS, allowed the consent quashing, noting that the matter was essentially civil/commercial and not a heinous offence. The Court also imposed costs of Rs. 25,000 on the applicants, directing payment to a charitable trust, to deter misuse of criminal law. The application was therefore allowed and disposed of subject to compliance with the cost order.
Issues considered
- Whether the High Court can quash the FIR, charge‑sheet and special case on the basis of consent between the parties under Section 482 CrPC and Section 528 BNSS.
- Whether costs may be imposed on the applicants in a consent‑quashing petition to prevent abuse of the criminal process.
Legislation cited
- BNSS — s. 528
- Code of Criminal Procedure, 1973 — s. 482
- Public Trust Act — s. XXIX of 1950
- Society Registration Act — s. XXI of 1980
Subjects
- consent quashing
- Section 482 CrPC
- Section 528 BNSS
- costs in criminal proceedings
- abuse of process
- settlement of civil dispute
- FIR quash
- special court
- public resources
Judgment
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HARSHADA H. SAWANT
(P.A.)
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CRIMINAL APPELLATE JURISDICTION
CRIMINAL APPLICATION NO.1599 OF 2026
Fatehsinh Mohansinh Chauhan Prop. M/S.
Haveli Enterprises And Anr. .. Applicants
Versus
The Union Territory Of Dadra And Nagar Haveli
And Daman And Diu .. Respondent
WITH
CRIMINAL APPLICATION NO.1602 OF 2026
Fatehsinh Mohansinh Chauhan Prop. M/S.
Haveli Enterprises And Anr. .. Applicants
Versus
The Union Territory Of Dadra And Nagar Haveli
And Daman And Diu .. Respondent
....................
Ms. Varsha Palav a/w. Mr. Ajinkya Palav and Mr. Viraj Shelatkar,
Advocates for Applicants in Application No.1599 of 2026.
Mr. Ashwin Thorat a/w. Archismati Chandramore, Ms. Reeti
Upadhyay for Respondent No.1.
Ms. Savina Bangera, Advocate for Respondent No.2.
PSI – Satish Chavan, Matunga Police Station.
...................
CORAM : MILIND N. JADHAV, J.
DATE : OCTOBER 08, 2026
P.C.:
1. Heard Ms. Palav, learned Advocate for Applicants
Application No.1599 of 2026; Mr. Thorat, learned Advocate for
Respondent No.1 and Ms. Bangera, learned APP for Respondent No.2.
2. Criminal Application No.1599 of 2026 is only determined by
this order. The Complainant who is arrayed as Respondent No.2 has
filed an affidavit for consent quashing dated 11.09.2026. Complainant
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would persuade the Court to accept the same. The parties have
reconciled their disputes and have settled it amongst themselves and
he has no grievance whatsoever if First Information Report No. 186 of
2017, consequential charge-sheet No.74 of 2018 and consequential
Special Case (SC/ST) No.3 of 2018 pending before the Special Court
namely Sessions Court of Dadra and Nagar Haveli at Silvassa is
quashed and set aside by the Court by consent quashing. Respondent
No.2 is present in Court and I have interacted with him with the able
assistance of his Advocates. He agrees that he has given his consent for
withdrawal of the criminal proceedings.
3. Without delineating anything further on merits and the fact
that the pendency of the criminal proceedings will duly affect the
parties and their future prospects, I am inclined to accept the request
made for Consent quashing and allow the Application.
4. Section 482 of the Criminal Procedure Code, 1973 conferred
inherent powers on High Courts to pass such orders as are justified to
give effect to any order in the Court, prevent abuse of process of any
Court or secure the ends of justice. In the BNSS this provision stands
incorporated with Section 528 which substantially reproduces the
language and intent of Section 482 of the CRPC, 1973 High Courts
invoke this provision to step in where cases have been instituted with
malafide motives or to harass the accused person thereby avoiding
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procedural harassment. It empowers Court to dismiss FIRs or criminal
proceedings if there is no prima facie case or evidence against the
accused person/s or if orders are made in violation of the principles of
natural justice. The exercise of such powers under Section 482 of CRPC
and now Section 528 of BNSS remains discretionary and varies from
case to case.
5. In State of Harayana vs Bhajan Lal1 the Supreme Court laid
down model categories and guidelines in paragraph No. 102 of the
said judgment in which the FIRs can be quashed. The Supreme Court
has further asserted that power under Section 482 is an
acknowledgment of "powers inherent" and not the source of powers
additional. It has held that even non compoundable offences can be
quashed where necessary. It has held that High Courts have to decide
whether the prosecution of an offence would further or be against the
interest of justice. It is also held that grievous offences such as murder,
rape, and dacoity cannot ordinarily be quashed even after settlement
because they involve societal implication.
6. In the above context, when parties settle their private dispute
or the lis between them is purely civil and commercial or matrimonial
and the offence is not heinous or does not impact the society at large,
the Court can consider such request. In such a case awarding costs for
putting the criminal law into motion on the act of the accused persons
1 1992 AIR 604
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and thereafter both parties seeking quashing of proceedings by
consent, in my opinion, can be considered by Court which can impose
costs on the parties, especially so in matters coming before the Court
by “consent quashing”.
7. For above levy of costs the legal principle rests on the logic
that criminal law cannot be used as a bargaining chip or a tool for
private settlements after draining the State and judicial resources. In
simple words, Courts cannot be used as a recovery mechanism to settle
scores and/or bring the parties into subjugation. I am of the firm
opinion that imposition of costs in consent quashing matters is
required to be levied for three main reasons viz., wastage of public
resources, consumption of valuable judicial time and for deterrence
against vexatious litigation. This is because after criminal machinery
is set into motion, the Police Department is forced to take cognizance,
conduct investigations, attend courts, deploy personnel, collect
evidence and draft chargesheets, all using public funds/ public
exchequer. Equally substantial judicial time of the Trial Courts and
Sessions Courts is wasted for handling a case, presentation of a case,
issuance of summons, scheduling of trial dates, appointment of
prosecutors and their fees, etc. and ultimately if consent quashing is
allowed such judicial time stands completely wasted, which could have
otherwise been used for genuine Trial Court matters/ litigation in one
way such matters result in clogging the legal system and lead to
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humongous pendency which becomes difficult to tackle.
8. Another aspect to consider for imposing costs is that it curbs
the growing trend of filing strategically exaggerated criminal
complaints (especially matrimonial or commercial disputes) simply to
force financial and legal settlements. In a given case made out on
merits of the matter, even the Complainant can be put to costs while
considering a quashing Petition purely on merits depending upon the
facts of each case before Court. In some strong circumstances, even the
State machinery can be put to costs if a purely civil dispute between
parties strongly emanating from the facts on record is registered as
criminal case and given the flavor of criminality. This Court is also
equally conscious about not imposing costs blindly or mechanically if a
particular party is not found to be remiss or at explicit fault for abusing
the law, as also conscious about heinous offences impacting the society
at large while considering consent quashing.
9. Applying the aforesaid principles to the facts of the present
case, I am of the opinion that the Applicants for their actions resulting
in the complainant invoking criminal proceedings and now both the
parties seeking quashing by consent, the Applicants should pay costs.
Hence, Applicant is directed to pay costs of Rs.25,000/- towards the
Corpus of A.K. Munshi Yojana a trust which runs medical centres,
vocational training centres and which also runs a Special School called
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J.T. Sheth Mandbuddhi Vikas Kendra, imparting education and training
to the needs of 150 special children in the field of Education (Classes
for 6 to 18 years), early intervention (upto 6 years) and vocational
training (18 years above) having its school address and building at A.K.
Munshi Yojana Chowk, 3rd Panjarapole Lane, C.P. Tank, Mumbai – 400
004 [Contact Nos. 22425513 / 22423654] registered under the Society
Registration Act, XXI of 1980 under No. : 387/81 GBBSD and the
Public Trust Act, XXIX of 1950 under No. F-6809. RCI Reg. No. 0163
within a period of two weeks from the date of uploading of this order.
Applicants are present in Court and through their learned Advocates
agree to pay the aforesaid costs amount to the charity.
10. In view of the above matter, the present Application deserves
to be allowed subject to payment of costs as directed herein above. At
the request of parties, it is so allowed in terms of prayer clauses ‘a-1’
which reads thus:-
“a-1)By an appropriate Writ, Order or direction of this Hon'ble Court,
the charge-sheet No. 74 of 2018 filed by the Respondent No. 1
and proceeding of Special Case (SC-ST) No. 3 of 2018, pending
before the learned Special Court, (learned Sessions Judge) Dadra
& Nagar Haveli, at Silvasa be quashed and set aside. ”
11. List the Application for compliance of the order regarding
payment of costs on 23rd October 2026.
12. Advocate in Application for Applicants shall remain present
and show compliance on behalf of Applicant on the returnable date for
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compliance. If learned Advocate for Applicants not remain present and
there is non-compliance of this order, Court will pass appropriate order
for recall of this order, which shall be noted by the Applicants/parties
to Application.
13. Criminal Application No.1602 of 2026 on 29th October 2026.
To be listed under the caption ‘First on Board’.
14. Criminal Application is allowed and disposed.
H. H. SAWANT [ MILIND N. JADHAV, J. ]
Digitally signed
HARSHADA by HARSHADA
HANUMANT
HANUMANT SAWANT
SAWANT Date: 2026.10.10
12:57:44 +0530
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