Bombay High Court
ZULFEEQUAR DAULAT KHAN SARGUROH AND ORSversusTHE STATE OF MAHARASHTRA AND ANR
- Decided
- Disposal
- Disposed Off
Holding
The High Court exercised its inherent power under Section 482 CrPC/Section 528 BNSS to quash the FIR as the matter was a settled commercial dispute, but imposed costs on the applicants.
Summary
The applicants were charged under IPC sections 406, 420 read with 34 for a commercial mineral supply dispute. The parties later reconciled, returned the disputed amount and filed consent terms seeking to quash the FIR under Section 482 of the CrPC and the corresponding Section 528 of the Bharatiya Nagarik Suraksha Sanhita. The Court examined the scope of its inherent powers, referring to the guidelines in State of Haryana v. Bhajan Lal, and noted that non‑heinous offences arising from civil or commercial matters may be quashed on settlement. While allowing the quash, the Court imposed costs of Rs. 25,000 on the applicants to be paid to a charitable special school. The order directed compliance within two weeks and disposed of the application.
Issues considered
- Whether the FIR under IPC 406, 420 r/w 34 can be quashed under Section 482 CrPC/Section 528 BNSS on the basis of a settlement of a commercial dispute.
- Whether costs may be imposed on the applicants in a consent‑quashing application.
Legislation cited
- Bharatiya Nagarik Suraksha Sanhita, 2023 — s. 528
- Code of Criminal Procedure, 1973 — s. 482
- Indian Penal Code, 1860 — s. 34, 406, 420
Subjects
- quash of FIR
- Section 482
- Section 528
- consent settlement
- commercial dispute
- costs order
- high court inherent powers
- IPC 406
- IPC 420
Judgment
63. APL-1560-26.odt
Amberkar
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CRIMINAL APPELLATE JURISDICTION
CRIMINAL APPLICATION NO. 1560 OF 2026
Zulfeequar Daulat Khan Sarguroh & Ors. .. Applicants
Versus
State of Maharashtra & Anr. .. Respondents
....................
Mr. Hrishikesh Mundargi i/by Pravada Rauit, Advocates for
Applicants
Ms. Anuja S. Gotad, APP for State
Mr. Kushal Mor a/w Mr. Tanmay Karmakar, Advocates for
Respondent No. 2
...................
CORAM : MILIND N. JADHAV, J.
DATE : AUGUST 31, 2026
P. C.:
1. Heard Mr. Mundargi, learned Advocate for Applicants; Ms.
Gotad, learned APP for State and Mr. Mor, learned Advocate for
Respondent No. 2.
2. Present Application is filed under the provisions of Section 482
of the Code of Criminal Procedure, 1973 corresponding with Section
528 of the Bharatiya Nagarik Suraksha Sanhita seeking to quash the
FIR dated 24.04.2024 bearing C.R. No. 0415 of 2024 registered with
Amboli Police Station under Section 406, 420, r/w. 34 of the Indian
Penal Code, 1860 against the Applicants.
3. Parties have reconciled their disputes which emanate from a
commercial transaction with regard to the supply of minerals between
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the parties. Parties have filed Consent Terms. Affidavit of Responder
dated 29.08.2026 gives reference of the said Consent Terms by which
the amount has been returned back by the Applicants to the
complainant. Consent affidavit of Responder No. 2 dated 29.08.2026
is taken on record. I have perused the same. All parties are present
before the court. I have interacted with them. Complainant has
confirmed the filing of the consent affidavit. They urge the Court to
quash the criminal proceedings.
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
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.
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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 furthered 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
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”.
1 1992 AIR 604
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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 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
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(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
complaint invoking criminal proceedings and now both the parties
seeking quashing by consent, the Applicants should pay costs. Hence,
Applicants are directed to pay costs of Rs. 25,000/- to A.K. Munshi
Yojana’s J.T. Sheth Mandbuddhi Vikas Kendra, a Special School
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,
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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.
10. All Applicants are present in Court and through their learned
Advocate agree to pay the aforesaid costs amount to the charity.
11. In view of the above matter, the present Application deserves to
be allowed subject to payment of costs as directed herein above. It is
so allowed in terms of prayer clause ‘a’ which read thus:-
“(a) That this Hon'ble Court may be pleased to exercise its power
under Section 482 of the Code of Criminal Procedure, 1973
corresponding with Section 528 of the Bharatiya Nagarik
Suraksha Sanhita, 2023 and may be pleased to quash the FIR
dated 24.04.2024 bearing C.R. No. 0415 of 2024 registered with
Amboli Police Station under Section 406, 420, r/w. 34 of the
Indian Penal Code, 1860 against the Applicants.
12. List the Appilcation for compliance of the order regarding
payment of costs on 15th September, 2026.
13. Advocate for Applicants shall remain present and show
compliance on behalf of the Applicants on the returnable date for
compliance. If he does 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 both Petitions.
14. Application is allowed and disposed.
Amberkar
Digitally signed
by RAVINDRA
RAVINDRA MOHAN
[ MILIND N. JADHAV, J. ]
MOHAN AMBERKAR
AMBERKAR Date:
2026.09.02
12:18:24 +0530
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