Bombay High Court
KRISHANPAL CHARANPAL SINGH AND ORSversusTHE STATE OF MAHARASHTRA AND ANR
- Decided
- Disposal
- Allowed
Holding
The High Court allowed the consent quashment of the FIR and imposed costs of Rs.25,000 on the applicants.
Summary
The applicants were accused of cheating and breach of trust after a monetary dispute, leading to FIR No. 0484 of 2026 under sections 3(5) and 318(4) of the Bhartiya Nyaya Sanhita. The parties subsequently reconciled, the complainant received Rs.30 lakhs and a demand draft of Rs.10 lakhs, and executed a consent affidavit confirming full payment. The applicants filed a criminal application seeking quashment of the FIR by consent, invoking the inherent powers of the High Court under Section 528 of the BNS (mirroring Section 482 of the CrPC). Relying on the Bhajan Lal guidelines, the court held that where the dispute is civil‑commercial, the offence is not heinous, and the parties have settled, the FIR may be quashed, but costs may be imposed to deter abuse of criminal process. Accordingly, the court allowed the consent quashment, ordered the applicants to pay Rs.25,000 to the Bar Council’s Advocate Aid Fund, and disposed of the application.
Issues considered
- Whether an FIR for cheating and breach of trust can be quashed by consent after full settlement of the civil dispute.
- Whether the High Court may impose costs on the applicants in a consent‑quashing proceeding.
- Whether sections 3(5) and 318(4) of the Bhartiya Nyaya Sanhita are suitable for quashment under the inherent powers of the Court.
- Application of the Bhajan Lal guidelines and Section 528 BNS in the present case.
Legislation cited
- Bhartiya Nyaya Sanhita, 2023 — s. 318(4), 3(5), 528
- Code of Criminal Procedure, 1973 — s. 482
Subjects
- consent quashment
- inherent powers
- Section 528 BNS
- Section 482 CrPC
- costs in criminal proceedings
- settlement of civil dispute
- cheating
- breach of trust
- Bhajan Lal guidelines
Judgment
140.APL.1638.2026.doc
Ajay
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CRIMINAL APPELLATE JURISDICTION
CRIMINAL APPLICATION NO. 1638 OF 2026
Krishnapal Charanpal Singh and Ors. .. Applicants
Versus
State of Maharashtra and Anr. .. Respondents
....................
Ms. Sonal Parab a/w. Ms. Esha Rane, Advocates for Applicants.
Mr. Yogesh M. Nakhwa, APP for Respondent – State.
Mr. Priyatosh R. Tiwari, Advocate for Respondent No.2 –
Complainant.
......…...........
CORAM : MILIND N. JADHAV, J.
DATE : SEPTEMBER 11, 2026.
P.C.:
1. Heard Ms. Parab, learned Advocate for Applicants; Mr.
Nakhwa, learned APP for Respondent No.1 – State and Mr. Tiwari,
learned Advocate for Respondent No.2 – Complainant.
2. The dispute and lis between the parties emanated out of
exchange of monies and non-payment thereof led to filing of the FIR
for cheating and breach of trust.
3. The parties have reconciled and have exchanged the monies.
Consent terms dated 30.08.2026 are appended at Exhibit ‘B’ - page 29
in which it is stated that Complainant has already received Rs.30 lakhs
and on the date of quashing of the present Application, a Demand
Draft of Rs.10 lakhs will be received by her. The Demand Draft of
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Rs.10 lakhs is handed over to the Complainant who is present in Court
through her Advocate Mr. Tiwari. (Demand Draft No.934988 of HDFC
Bank, dated 17.08.2026) The consent Affidavit is filed by the
Complainant. She is present in Court. I have interacted with her. She
confirms the receipt of all the aforesaid amounts and the Demand
Draft.
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.
5. In State of Harayana vs Bhajan Lal 1 the Supreme Court laid
down model categories and guidelines in paragraph No. 102 of the
1 1992 AIR 604
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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
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
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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 (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
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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, Applicants are directed to pay costs of Rs.25,000/- to Account
Name: Bar Council of Maharashtra and Goa Advocate Aid Fund; Bank
Name: State Bank of India; Branch Name: Mumbai Main Branch;
Account No.10996711937; IFS Code: SBIN0000300 and Type of
Account: Savings Account. All Applicants are present in Court and
through their learned Advocates agree to pay the aforesaid costs
amount as directed.
10. In this view of the above, both the learned Advocates
persuade the Court to allow the Application by consent quashing. The
Application stands allowed in terms of prayer clause (a) which reads
thus:-
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“(a) That this Hon’ble Court be pleased to quash FIR No. 0484
of 2026 filed by the Respondent No. 2 at Mankhurd Police
Station, Mumbai for alleged offences punishable 3(5),
318(4) of Bhartiya Nyaya Sanhita, 2023 against the
Applicants/Accused on such terms and conditions as this
Hon’ble Court may deem fit and proper.”
11. In view of the above, Criminal Application is disposed.
[ MILIND N. JADHAV, J. ]
Ajay
Digitally signed
by AJAY
AJAY TRAMBAK
TRAMBAK UGALMUGALE
UGALMUGALE Date:
2026.09.12
16:59:20 +0530
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