Bombay High Court
ARVIND BHARATBHUSHAN AGARWAL AND ANRversusTHE STATE OF MAHARASHTRA AND ANR
- Decided
- Disposal
- Disposed Off
Holding
The High Court held that where a commercial dispute has been settled and the FIR does not involve a heinous offence, the FIR may be quashed under Section 528/482, and costs may be imposed on the petitioners to prevent abuse of process.
Summary
The petitioners filed a writ petition under Section 528 of the Bharatiya Nagarik Suraksha Sanhita (mirroring Section 482 of the CrPC) seeking to quash FIR No. 1613/2024, which arose from a commercial dispute. The parties have since reconciled, filed a consent affidavit, and the complainant urged the court to set aside the criminal proceedings. Relying on the Bhajan Lal guidelines, the court examined whether a settled civil dispute involving non‑heinous offences can justify quashing the FIR and whether costs should be imposed to deter misuse of criminal law. The court held that, absent a serious societal interest, the FIR could be quashed and directed the petitioners to pay Rs. 25,000 as costs to a charitable institution. The petition was therefore allowed, the FIR set aside, and costs imposed.
Issues considered
- Whether the High Court can quash an FIR under Section 528/482 when the underlying dispute has been settled and the offences are not heinous.
- Whether costs may be imposed on petitioners in a consent‑quashing petition to deter abuse of the criminal process.
Legislation cited
- Bharatiya Nagarik Suraksha Sanhita — s. 528
- Bharatiya Nagarik Suraksha Sanhita (BNS) — s. 316(5), 318(4), 336(2), 336(3), 338, 340(2), 3(5), 351(2) r/w 34
- Code of Criminal Procedure, 1973 — s. 482
- Public Trust Act, 1950
Subjects
- quash FIR
- Section 482
- Section 528
- consent settlement
- costs
- abuse of process
- commercial dispute
- criminal procedure
- Bhajan Lal guidelines
Judgment
64. CRI WP-1581-26.odt
Amberkar
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CRIMINAL APPELLATE JURISDICTION
WRIT PETITION NO. 1581 OF 2026
Arvind Bharatbhushan Agarwal & Anr. .. Petitioners
Versus
The State of Maharashtra & Anr. .. Respondents
....................
Mr. Bakul Bhosale a/w Mr. Rajeev R. Chaudhary, Advocates for
Petitioners
Ms. Rajeshree V. Newton, APP for State
Mr. Himanshu Jha, Advocate for Respondent No. 2
...................
CORAM : MILIND N. JADHAV, J.
DATE : AUGUST 31, 2026
P. C.:
1. Heard Mr. Bhosale, learned Advocate for Petitioners; Ms.
Newton, learned APP for State and Mr. Jha, learned Advocate for
Respondent No. 2.
2. Present Petition is filed under the provisions of Section 482 of
the Code of Criminal Procedure, 1973 / 528 of Bharatiya Nagarik
Suraksha Sanhita seeking to quash and set aside the F.I.R. bearing No.
1613/2024 under Sections 3(5), 316(5), 318(4), 336(2), 336(3), 338,
340(2), 351(2) r/w 34 of the BNS against the Petitioners dated
16/10/2024.
3. Parties are before the Court in view of the fact that there was a
commercial dispute between the parties, which led to the filing of the
FIR dated 16-10-2024. Parties have now reconciled their dispute and
1 of 6
64. CRI WP-1581-26.odt
all claims have been settled. Consent affidavit filed by respondent No.
2 dated 24.06.2026 is taken on record. Complainant is present in
court. I have interacted with him. He confirms his consent affidavit
and urges the Court to quash the 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.
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
1 1992 AIR 604
2 of 6
64. CRI WP-1581-26.odt
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”.
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
3 of 6
64. CRI WP-1581-26.odt
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 State
4 of 6
64. CRI WP-1581-26.odt
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 Petitioners for their actions resulting in
the complainant invoking criminal proceedings and now both the
parties seeking quashing by consent, the Petitioners should pay costs.
Hence, Petitioners are directed to pay costs of Rs.25,000/- towards the
corpus of 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, 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. Petitioners are
5 of 6
64. CRI WP-1581-26.odt
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 Petition deserves to be
allowed subject to payment of costs as directed herein above. It is so
allowed in terms of prayer clauses ‘a’ which read thus:-
“(a) That the Hon'ble Court may be pleased to quash and set aside
the F.I.R. bearing No. 1613/2024 under section 3(5), 316(5),
318(4), 336(2), 336(3), 338, 340(2), 351(2) r/w 34 of the BNS
against the Petitioners dated 16/10/2024;
11. List the Petition for compliance of the order regarding payment
of costs on 15th September, 2026.
12. Advocate for Petitioners shall remain present and show
compliance on behalf of Petitioners on the returnable date for
compliance. If they do 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 Petitioners/parties to both Petitions.
13. Writ Petition is allowed and disposed.
Amberkar [ MILIND N. JADHAV, J. ]
Digitally signed
by RAVINDRA
RAVINDRA MOHAN
MOHAN AMBERKAR
AMBERKAR Date:
2026.09.03
17:57:15 +0530
6 of 6
Checking your session…