DEEPAK CHANDULAL LOHANA AND ORSversusTHE STATE OF MAHARASHTRA AND ANR

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                                 IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                       CRIMINAL APPELLATE JURISDICTION

                                           WRIT PETITION NO. 3279 OF 2026

                      Deepak Chandulal Lohana & ors.                      .Petitioners

                                     Vs.

                      The State of Maharashtra & anr.                     .Respondents

ANAND                 Mr. Shamamah Kazi i/b. Mr. Sagar Pujari, Advocates, for the Petitioners
SUDHAKAR
SUDAME                Mr. Vijay Shelar, Advocate, for Respondent No. 2
Digitally signed by
ANAND SUDHAKAR
                      Ms. Rupali Chaudhari, API, DCB, CID, Unit No. 6, Chembur present
SUDAME
Date: 2026.09.29
10:47:51 +0530
                                           CORAM : MILIND N. JADHAV, J.

                                           DATE    : 18.09.2026
                      P. C.

                      1.      Heard Mr. Kazi, learned Counsel for the Petitioners and

                      Mr. Shelar, learned Counsel for Respondent No. 2.

                      2.      The lis between the parties was part of a commercial suit with

                      regard to the transaction in question. That has been settled by virtue of

                      Memorandum of Understanding executed between the parties on

                      05.05.2026. The final tranche of payment of Rs.2.5/- Crores is handed

                      over by way of Demand Draft to the Petitioners in Court before me

                      today. The Petitioners have received the same. They are present in

                      Court today. They confirm receipt of the same. In view of the above,

                      both the parties have requested the Court for consent quashing of the

                      Criminal proceeding.

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3.      Considering the request made by the learned Advocates, their

submissions      and    the    Consent     Affidavit   of    Respondent

No.2/Complainant dated 09.06.2026 filed which is appended at page

No. 20, the Petition stands allowed.

4.      In addition to the above, the Bank account, being HDFC Bank, C.

G. Road, Chembur having A/c. No.50200035088206 of the Petitioners

which has been frozen by the prosecution is directed to be immediately

released from attachment and re-frozen.

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 CRPC

and now Section 528 of BNSS remains discretionary and varies from


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case to case.

6.      In State of Harayana vs Bhajan Lal 1 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, 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


1
     1992 AIR 604

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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 Petitioner, for his 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 a trust which runs medical centres, vocational

training centres and which also runs a Special School called J.T. Sheth

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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.

The Petitioners are present in Court and through their learned

Advocate agree to pay the aforesaid costs amount to the charity.


11.     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 ‘b’ which read thus:-

           “a)   That this Hon’ble Court may be pleased to issue appropriate Writ,
                 Order or Direction thereby quashing and setting aside C. R. No. 68
                 of 2022 registered with DCB CID Unit-VI, Mumbai (transferred
                 from Chembur Police Station) for offences punishable under
                 Sections 406, 420, 465, 467, 468, 506 and 120B of the Indian
                 Penal Code, 1860 on such terms and conditions as this Hon’ble
                 Court may deem fit and proper in the interest of justice.
           b)    That this Hon’ble Court may be pleased to quash and set aside
                 consequential chargesheet and criminal proceedings pending
                 before the Hon’ble 37th Metropolitan Magistrate, Esplanade,
                 Mumbai.”

12.     List the Writ Petition for compliance of the order regarding


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payment of costs on 05.10.2026.


13.     Advocate for the Petitioners shall remain present and show

compliance on behalf of the Petitioners on the returnable date for

compliance. 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 Petitioners.


14.     Writ Petition is allowed and disposed.



                                                 (MILIND N. JADHAV, J.)




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