Bombay High Court
ASHOK CHAMPALAL PAREKH AND ANRversusSTATE OF MAHARASHTRA AND ANR
- Decided
- Disposal
- Disposed Off
Holding
The High Court quashed the FIR and ordered the petitioners to pay costs, holding that consent quashing is permissible in private commercial matters where no serious societal interest is involved.
Summary
The petitioners, engaged in a gold exchange business, filed a complaint alleging breach of trust, leading to FIR C.R. No.65 of 2026 under Sections 316(5) and 3(5) of the Bharatiya Nyaya Sanhita. The parties later reconciled and submitted a consent affidavit stating full payment of dues, seeking quashal of the FIR. The High Court, invoking its inherent powers under Section 528 of the Bharatiya Nagarik Suraksha Sanhita (mirroring Section 482 of the CrPC) and applying the Bhajan Lal guidelines, held that the matter was a private commercial dispute not involving a heinous offence and could be quashed by consent. The Court also directed the petitioners to pay costs of Rs. 25,000 to a charitable NGO to deter misuse of criminal law. Consequently, the FIR and the related witness statement were quashed, and the petition was allowed subject to the cost order.
Issues considered
- Whether an FIR arising from a private commercial dispute can be quashed on the parties' consent under Section 528 BNSS/Section 482 CRPC.
- Whether costs may be imposed on petitioners in a consent‑quashing proceeding.
- Whether the offences alleged under Sections 316(5) and 3(5) BNS are of a nature that permits quashal despite being non‑compoundable.
Legislation cited
- Bharatiya Nagarik Suraksha Sanhita, 2023 — s. 528
- Bharatiya Nyaya Sanhita, 2023 — s. 316(5), 3(5)
- Code of Criminal Procedure, 1973 — s. 482
- Constitution of India — s. Article 226
Subjects
- consent quashing
- Section 482
- Section 528
- costs in criminal proceedings
- FIR quashal
- commercial dispute
- Bharatiya Nagarik Suraksha Sanhita
- Bhajan Lal guidelines
- Article 226
Judgment
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Amberkar
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CRIMINAL APPELLATE JURISDICTION
WRIT PETITION NO. 2205 OF 2026
Ashok Champalal Parekh & Anr. .. Petitioners
Versus
State of Maharashtra & Anr. .. Respondents
....................
Mr. Gaurav Nankar a/w Mr. Pibush Toshnival i/by Mr. Ashish
Pawar, Advocates for Petitioners
Ms. Rajeshree V. Newton, APP for State
Ms. Ruchi Singh a/w Ms. Smita Ausarkar, Advocates for
Respondent No. 2
Mr. John Pillai, PSI, Vile Parle Police Station
...................
CORAM : MILIND N. JADHAV, J.
DATE : AUGUST 31, 2026
P. C.:
1. Heard Mr. Nankar, learned Advocate for Petitioners; Ms.
Newton, learned APP for State and Ms. Singh, learned Advocate for
Respondent No. 2.
2. Present Petition is filed under the provisions of Article 226 of
the Constitution of India 1950 and Section 528 of the Bharatiya
Nagarik Suraksha Sanhita, 2023 seeking to quash FIR bearing C.R. No.
65 of 2026 dated 23.01.2026 registered with the Vile Parle Police
Station, Mumbai.
3. Petitioners and Respondent No. 2 have a business relationship
being involved in the exchange of gold and gold manufactured
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ornaments between them. A complaint was filed due to one such
incident for breach of trust. Since the parties have reconciled their
claims, they have urged the Court to consider their case for consent
quashing.
4. Respondent No. 2 has filed consent affidavit dated 10.07.2026
which is taken on record. I have perused the same. Parties are present
before the court. I have interacted with both parties. In the consent
affidavit, complainant has stated that all amounts have been duly paid
to him by Petitioner. In the above circumstances, there is no
impediment in allowing the present Petition as requested.
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
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
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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
and thereafter both parties seeking quashing of proceedings by
consent, in my opinion, can be considered by Court which can impose
1 1992 AIR 604
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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
matters result in clogging the legal system and lead to humongous
pendency which becomes difficult to tackle.
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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 complain 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/- to Anand Mangal
Bahuuddeshiya Sanstha within a period of two weeks from the date of
uploading of this order. Petitioners are present in Court and through
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their learned Advocates agree to pay the aforesaid costs amount to the
charity.
11. I direct payment of costs to Anand Mangal Bahuuddeshiya
Sanstha, registered NGO and Trust situated at Malegaon working at
the grassroots level towards social welfare, holistic upliftment,
sustainable community development of destitutes, marginalized
women, elderly persons by providing them shelter, dignity, daytime
care services, medical care, promoting women empowerment by
livelihood training and practical vocational skill training programs in
rural and urban areas, supports skill development and health care
access and emergency relief for vulnerable community groups and at
present providing complete shelter, nutritious meals and complete
healthcare to 28 destitute seniors and 6 individuals with intellectual
disabilities at their Malegaon Headquarters. The details of this Sanstha
for payment of costs are as under:-
Name of Bank: Bank Of Maharashtra
Account Number: 60434381304
IFSC Code: MAHB0002075
MICR Code: 423014102
Registered Name: Anand Mangal Bahuuddeshiya Sanstha, Malegaon.
Registration No.: MAHA/2909/Nashik | F-15352 / Nashik,
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Office Address: S.No. 39/2/4D/41/1, Plot No.13, Near Panchaganga
Auto Showroom, Malegaon, Dist. Nashik, Maharashtra,
Mobile No.: +91 8208525304.
12. 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 ‘b ’ which read thus:-
“(b) This Hon'ble Court be pleased to quash and set aside the FIR
bearing C.R. No. 65 of 2026 dated 23.01.2026 registered with the
Vile Parle Police Station, Dist. Mumbai for the offences punishable
under Sections 316(5), 3(5) of the Bharatiya Nyaya Sanhita
(BNS), 2023.
13. It is further clarified that PW NO. 901/2026 is also quashed
14. List the Petition for compliance of the order regarding payment
of costs on 16th September, 2026.
15. 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.
16. Writ Petition is allowed and disposed.
Amberkar [ MILIND N. JADHAV, J. ]
Digitally signed
by RAVINDRA
RAVINDRA MOHAN
MOHAN AMBERKAR
AMBERKAR Date:
2026.09.03
12:14:11 +0530
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