Created by Fuzzy Cloud

Bombay High Court

NISHIT HASMUKHBHAI MEHTA AND ANRversusTHE STATE OF MAHARASHTRA AND ANR

Decided
Disposal
Disposed Off

Holding

The High Court allowed the writ petition, quashed the FIR, and imposed costs on the petitioners.

Summary

The petitioners, businessmen involved in a diamond trade dispute, settled unpaid invoices amounting to Rs.1.52 crore and filed a consent affidavit confirming receipt of the settlement. They sought quashing of an FIR registered under sections 409, 420 and 34 of the IPC, invoking the inherent powers of the High Court under Section 482 of the CrPC and Section 528 of the B.N.S.S. The Court examined the Bhajan Lal guidelines on quashing FIRs, noting that non‑heinous commercial offences may be dismissed when the dispute is civil in nature and both parties consent. It held that while consent quashing is permissible, costs may be imposed to deter misuse of criminal law and compensate public resources. Consequently, the petition was allowed, the FIR was quashed, and the petitioners were ordered to pay Rs.25,000 to a charitable trust.

Issues considered

  • Whether an FIR for non‑heinous commercial offences can be quashed on the basis of a settlement and consent of the parties
  • Whether Section 528 of the B.N.S.S (in conjunction with Section 482 of the CrPC) empowers the High Court to quash such FIRs
  • Whether costs may be imposed on parties seeking consent quashing of criminal proceedings

Legislation cited

Subjects

  • consent quashing
  • Section 482
  • Section 528
  • commercial dispute
  • non‑heinous offence
  • costs in criminal proceedings
  • abuse of process

Judgment

                                                                          153.WP.5976.2025.doc

HARSHADA H. SAWANT
      (P.A.)
                        IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                      CRIMINAL APPELLATE JURISDICTION


                                  WRIT PETITION NO.5976 OF 2025

              Nishit Hasmukhbhai Mehta And Anr.                .. Petitioners
                          Versus
              The State of Maharashtra and Anr.                .. Respondents
                                          ....................
               Mr. Sachin Daga a/w. Ms. Shreyashi Panda, Advocates for
                 Petitioners.
               Ms. Sangeeta E. Phad, APP for Respondent No.1 – State.
               Ms. Trushna Shah, Advocate for Respondent No.2.
               PSI – Sonali Ghadge, BKC Police Station.
                                                ...................

                                               CORAM : MILIND N. JADHAV, J.
                                               DATE          : OCTOBER 08, 2026
              P.C.:

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

              learned APP for Respondent No.1 and Ms. Shah, learned Advocate for

              Respondent No.2.


              2.         The dispute between the Petitioners who are both

              businessmen and known to each other having a business relationship,

              stands duly resolved which had arisen on account of the unpaid

              invoices regarding to trading of diamonds.


              3.         The Petitioners have filed a their additional affidavit which is

              taken on record. The Complainant’s Consent Affidavit dated

              08.10.2026 is taken on record. The Complainant is not present since he

              is visiting a religious place.



                                                                                        1 of 6
                                                           153.WP.5976.2025.doc


4.           The learned advocate for the Complainant has taken me

through the affidavit of Consent wherein the entire settlement amount

of Rs.1.52 Crores has stood received by the Complainant. As per the

details stated therein, I have no reason to disbelieve the same.


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

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
1    1992 AIR 604

                                                                         2 of 6
                                                         153.WP.5976.2025.doc


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

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



                                                                       3 of 6
                                                      153.WP.5976.2025.doc


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.


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

                                                                    4 of 6
                                                         153.WP.5976.2025.doc


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, the Petitioners should pay costs.

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

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 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, 3 rd 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

                                                                       5 of 6
                                                                                                    153.WP.5976.2025.doc


                            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’ which read thus:-


                                                  “a) To issue a writ in the nature of mandamus or any other appropriate
                                                       writs or orders or directions in exercise of the extraordinary
                                                       jurisdiction and inherent powers of this Hon'ble Court under
                                                       Article 226 of the Constitution of India, 1950 read with Section
                                                       528 of B.N.S.S to call for records, quash and set aside the
                                                       impugned FIR bearing C.R. No. 184 of 2025 dated 12.04.2025
                                                       registered by Bandra Kurla Complex Police Station, Mumbai
                                                       against the Petitioners under B.N.S.S. for alleged offences under
                                                       the sections 409, 420, and 34 of The Indian Penal Code, 1860 on
                                                       the basis of a police complaint lodged by the Respondent No. 2
                                                       together with all investigations and other proceedings ensuing
                                                       therefrom; and”


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

                            payment of costs on 23rd October 2026.


                            13.                   Advocates in Petitions for Petitioners shall remain present

                            and show compliance on behalf of all 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 Petitions.


                            14.                   Writ Petition is allowed and disposed.



H. H. SAWANT                                                                        [ MILIND N. JADHAV, J. ]




                            Digitally signed by
               HARSHADA HARSHADA
                        HANUMANT
               HANUMANT SAWANT
               SAWANT   Date: 2026.10.10
                            12:51:27 +0530
                                                                                                                  6 of 6


Continue reading with your account

Sign in to read the full judgment. It’s free.

Sign in to read

Checking your session…

For a signed copy suitable for filing, refer to the court's website.