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Bombay High Court

PRIKAR PROPERTIES PRIVATE LIMITED AND ORSversusTHE STATE OF MAHARASHTRA AND ORS

Decided
Disposal
Allowed

Holding

The petition is allowed and the criminal proceedings are quashed, subject to the imposition of costs on the petitioners.

Summary

The petitioners sought quashing of criminal proceedings that arose from a civil dispute over an MOU, which had led to a civil suit and subsequent criminal case. Both parties entered into a settlement, signing consent terms and a mediator’s report dated 01‑10‑2026, and requested the court to dismiss the criminal case. The court examined its inherent power under Section 482 of the Criminal Procedure Code, 1973 (and the analogous Section 528 of the BNSS) and relied on the principles laid down in State of Haryana v. Bhajan Lal (1992 AIR 604) regarding consent quashing. It held that where the dispute is essentially civil and the offence is not heinous, the High Court may quash the proceedings, but may also impose costs to deter misuse of criminal law. Accordingly, the petition was allowed, the criminal proceedings were quashed, and the petitioners were directed to pay Rs. 25,000 as costs to a charitable trust.

Issues considered

  • Whether the High Court can quash criminal proceedings on the basis of a settlement between parties where the underlying dispute is civil.
  • Whether Section 482 of the CrPC (and Section 528 of the BNSS) empowers the court to dismiss the case despite the offence being non‑heinous.
  • Whether costs can be imposed on the petitioners in a consent‑quashing order.

Legislation cited

Subjects

  • consent quashing
  • Section 482 CrPC
  • civil dispute
  • criminal proceedings
  • costs
  • mediation
  • settlement
  • inherent powers of High Court

Judgment

                                                                54.WP.1757.2017.doc

Ajay

                IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                          CRIMINAL APPELLATE JURISDICTION

                        WRIT PETITION NO. 1757 OF 2017

       Prikar Properties Private Limited and Ors.          .. Petitioners
             Versus
       State of Maharashtra and Ors.                       .. Respondents

                                  ....................
        Mr. Anupam Surve a/w. Mr. Vinayak S. Vengurlekar, Advocates
         i/by Ms. Nair Venurlekar & Co. for Petitioners.
        Ms. Sangeeta E. Phad, APP for Respondent – State.
        Mr. Hemant J. Ashar and Ms. Neeta H. Ashar, Advocates for
         Respondent Nos.2 and 3.
        Mr. Karma Vivan, Advocate for Respondent No.6.
        Mr. Vimal J. Soni, Respondent No.6 present.
                                     ......…...........

                                   CORAM : MILIND N. JADHAV, J.
                                   DATE          : OCTOBER 01, 2026.

       P.C.:

       1.        Heard Mr. Surve, learned Advocate for Petitioners; Ms. Phad,

       learned APP for Respondent – State and Mr. Ashar, learned Advocate

       for Respondent Nos.2 and 3.


       2.        The parties are before the Court seeking quashing of the

       criminal proceedings in view of the parties having amicably settled the

       dispute finally. Consent Terms are duly signed by Petitioner Nos.1 to

       3; Respondent No.6 and their respective Advocates.


       3.        Mr. Surve, learned Advocate persuades me to take on record

       Consent Terms and Mediator's Report both dated 01.10. 2026. Perusal


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of the said prima facie shows that the dispute between the parties

emanated from a civil issue, namely an MOU which ultimately led to

filing of a Civil Suit and the present criminal proceedings. Be that as it

may, since the parties have now reconciled the dispute and entered

into Consent Terms, request is made by both the parties to quash the

criminal proceedings so that the parties can continue to lead their life

free of the burden of the criminal proceedings and carry on with their

business prospects.


4.        Adhering to the request made by the parties, I am inclined to

consider the Petition and allow consent quashing. Parties are present

before me. I have interacted with the parties with the able assistance of

their respective Advocates. At the request made by the learned

Advocates, I wish to put in a word for the Mediator in the present

matter who has taken absolute efforts to reconcile the dispute

considering that the present Petition had remained pending on the

record of the Court for the past more than 9 years.


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



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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.


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     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.


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,
1    1992 AIR 604

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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”.


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

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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.


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 Petitioners for their actions resulting

in the Complainant invoking criminal proceedings and now both the

parties seeking quashing by consent, Petitioners should pay costs.

Hence, Petitioners are directed to pay costs of Rs.25,000/- towards the



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Corpus of A.K. Munshi Yojana a trust which runs medical centres,

vocational 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

within a period of two weeks from the date of uploading of this order.

All Petitioners are present in Court and through their learned

Advocates agree to pay the aforesaid costs amount as directed.


11.       As stated in the Consent Terms, Demand Draft of Rs.2 crores

has been handed over to Respondent No.6. The parties are all present

before me and submit that they shall all abide by the terms and

conditions in the Consent Terms as per their undertaking given to this

Court.


12.       Parties shall be at liberty to approach the Civil Court on the

basis of the Consent Terms and take appropriate orders for disposal of

the Civil Suit in accordance with law.




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                                  13.       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’ and ‘a1’.


                                  14.       Parties have jointly informed the Court that they will take

                                  immediate steps to dispose of the Civil Suit and one pending Criminal

                                  Writ Petition in this Court for the same cause of action, in view of the

                                  present order and the Consent Terms.


                                  15.       The Vakalatnama on behalf of Respondent No.6 of Mr.

                                  Karma is accepted by the Registry/Department and placed on the

                                  record of the case.


                                  16.       In view of the above, Writ Petition is disposed.


                                  17.       List the present Writ Petition on Board on 15th October 2026.




                                                                              [ MILIND N. JADHAV, J. ]

        Ajay
               Digitally signed
               by AJAY
AJAY       TRAMBAK
TRAMBAK    UGALMUGALE
UGALMUGALE Date: 2026.10.01
               18:42:07 +0530




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