Bombay High Court
KAMLESH KEDARNATH RAIversusTHE STATE OF MAHARASHTRA AND ORS
- Decided
- Disposal
- Allowed
Holding
The High Court quashed the chargesheet under Section 528, subject to the applicant paying costs of Rs 10,000 to a charitable trust.
Summary
The applicant and the complainant, who are co‑owners of a hotel business, fell out over a Rs 5 lakh hand loan, leading to an FIR for extortion and the registration of a chargesheet under Section 308(2) of the Bharatiya Nyaya Sanhita, 2023. Three days later the complainant filed an affidavit of reconciliation, and both parties jointly sought to quash the criminal proceedings by filing an application under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023. The High Court, invoking its inherent powers under Section 528 (mirroring Section 482 of the CrPC), examined the Bhajan Lal guidelines on consent quashing and held that the matter was a private commercial dispute not affecting public interest. Accordingly, the court allowed the consent quash of the chargesheet but imposed costs of Rs 10,000 to be paid to a charitable trust. The applicant consented to pay the costs within two weeks, and the application was disposed.
Issues considered
- Whether a criminal chargesheet for extortion can be quashed by consent under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (inherent powers analogous to Section 482 of the CrPC).
- Whether the Bhajan Lal guidelines permit quashing of a non‑heinous offence arising from a private commercial dispute.
- Whether costs may be imposed on the parties in a consent‑quash application.
Legislation cited
- Bharatiya Nagarik Suraksha Sanhita, 2023 — s. 528
- Bharatiya Nyaya Sanhita, 2023 — s. 308(2)
- Code of Criminal Procedure, 1973 — s. 482
Subjects
- consent quashing
- inherent powers
- Section 528
- Section 482
- extortion
- commercial dispute
- costs
- Bharatiya Nyaya Sanhita
- Bharatiya Nagarik Suraksha Sanhita
- Bhajan Lal guidelines
Judgment
127. APL-790-26.odt
Amberkar
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CRIMINAL APPELLATE JURISDICTION
CRIMINAL APPLICATION NO. 790 OF 2026
Kamlesh Kedarnath Rai .. Applicant
Versus
The State of Maharashtra & Ors. .. Respondents
....................
Mr. Rishi Bhuta a/w Ms. Saakshi Jha, Advocates for Applicant
Mr. Yogesh M. Nakhwa, APP for State
Mr. Ujjwal Gandhi, Advocate for Respondent No. 3
...................
CORAM : MILIND N. JADHAV, J.
DATE : SEPTEMBER 11, 2026
P. C.:
1. Heard Mr. Bhuta, learned Advocate for Applicant; Mr. Nakhwa,
learned APP for State and Mr. Gandhi, learned Advocate for
Respondent No. 3.
2. Present Application is filed under Section 528 of Bharatiya
Nagarik Suraksha Sanhita, 2023 seeking to quash the chargesheet in
C.R. No. 578/2025 registered with the MIDC Police Station under
Section 308(2) of the Bharatiya Nyaya Sanhita, 2023 and the
proceedings pending on the files of the Ld. Addl. Chief JMFC, XXII
Court, Andheri vide C.C. No. 3721/PW/2025.
3. Parties before the Court run a hotel business together. Mr.
Bhuta would submit that on the basis of hand loan of 5 Lakhs
exchanged between the parties, the return and reciprocation of the
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said sum was not done and FIR was lodged and Applicant was
apprehended on the ground of extortion. However it is seen that
Immediately three days thereafter, Complainant approached the
concerned Magistrate and filed an affidavit to the effect of
reconciliation of their differences and both parties in fact been
business partners and running the hotel business establishment
together.
4. Consent affidavit dated 15.04.2026 of Complainant is filed
before me. Both parties are present before Court. I have interacted
with them. I prima facie find that whatever may have happened, it
should not now come in their way of they doing business together and
therefore, at the request made by both parties, I am inclined to allow
the present Application by consent quashing.
5. 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
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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.
6. 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.
7. 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”.
8. 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
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matters result in clogging the legal system and lead to humongous
pendency which becomes difficult to tackle.
9. 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.
10. Applying the aforesaid principles to the facts of the present case,
I am of the opinion that the Applicant for his actions resulting in the
Complainant invoking criminal proceedings and now both the parties
seeking quashing by consent, the Applicant should pay costs. Hence,
Applicant is directed to pay costs of Rs. 10,000/- towards the Corpus
of A.K. Munshi Yojana a trust which runs medical centres, vocational
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training centres and which also runs a Special School called 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.
11. Applicant is present in Court and through his Advocates agree to
pay the aforesaid costs amount to the charity within a period of two
weeks from today.
12. 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 (c) which reads thus:-
“c . That considering the facts and circumstances of the case, this
Hon'ble Court be pleased to quash the chargesheet in C.R. No.
578/2025 registered with the MIDC Police Station under Section
308(2) of the Bharatiya Nyaya Sanhita, 2023 and the proceedings
pending on the files of the Ld. Addl. Chief JMFC, XXII Court,
Andheri vide C.C. No. 3721/PW/2025 on such terms and
conditions as this Hon'ble Court may deem fit and proper"
13. List the Application for compliance of the order on 16th
October, 2026.
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14. Advocate for Applicant shall remain present and show
compliance on that date. 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 Applicant.
15. Criminal Application is allowed and disposed.
Amberkar [ MILIND N. JADHAV, J. ]
Digitally
signed by
RAVINDRA
RAVINDRA MOHAN
MOHAN AMBERKAR
AMBERKAR Date:
2026.09.15
15:51:48
+0530
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