IMPORTANT POINT
Continuation of proceedings after compromise will only prolong the trial which may end in a decision which may be of no consequence to any of the parties. It would amount to abuse of process of Court and an exercise in futility.

JUDGMENT

Pinaki Chandra Ghose, J.

Leave granted.

2. This appeal, by special leave, has been filed assailing the judgment and order dated 2nd June, 2011 passed by the High Court of Punjab and Haryana at Chandigarh in Criminal Miscellaneous No.M-2829 of 2011, whereby the High Court while relying upon another judgment of the same High Court and on the basis of settlement of dispute, quashed the criminal proceedings against the respondents, being FIR No.SIA-2001-E-0006 dated 28.12.2001 under Sections 420 and 471 of Indian Penal Code [in short `IPC'], registered at Police Station, SIU(X)/SPE/CBI, New Delhi and the criminal proceedings pending in the Court of learned Special Judicial Magistrate, CBI, Punjab, Patiala.

3. Brief facts of the case are as follows: M/s. Rom Industries Ltd., Mansa Road, Bhatinda (Punjab), which is respondent No.3 herein, (hereinafter referred to as the "respondent-company") was dealing with State Bank of Patiala, Bhatinda (City) Branch (for short "the Bank") since 1976 and was availing the credit limits from a consortium of banks with the Bank as leader and enjoyed total fund based credit limits from the banking system to an extent of Rs. 31,500.00 lacs in March, 1996. However, in the year 1996, due to destruction of stocks consisting of Deolided Cakes lying at Bedi Port, Jamnagar in a cyclone storm that hit Bedi Port, Jamnagar on 19/20 June, 1996, it claimed to have suffered heavy loss to the extent of Rs. 38.08 crores. The destruction of stocks could not be corroborated by any evidence. The respondent-company had been granted credit facilities against hypothecation of stocks which included stocks lying at the port. But allegedly after Bank verification of the stocks, it was found that the respondent-company had fraudulently obtained higher credit limits on the basis of stock statements which appeared forged and false. The respondent-company approached the Bank for grant of adhoc export packing credit limit of Rs. 10 crores in February 1995, which was sanctioned on 09.03.1995.

4. Law was set into motion when FIR No.SIA-2001-E-0006 dated 28.12.2001 was registered at Police Station, SIU(X)/SPE/CBI, New Delhi, by Shri K. Balachandran, Chief Vigilance Officer of the State Bank of Patiala under Section 120-B read with Sections 420, 467, 468 and 471 of IPC, against the Board of Directors including respondent Nos.1 & 2. Charge-sheet was filed before the learned Special Judicial, Magistrate, CBI, Patiala, Punjab, against the respondents under Section 420/471 read with Section 120(B) of IPC, for having entered into criminal conspiracy between 1995 to 1996 and causing loss to State Bank of Patiala to the extent of Rs. 28.49/- crores through false stock statements, forged bank guarantee and dishonest misuse of funds generated.

5. During the pendency of the proceedings before the Court of learned Special Judicial Magistrate, CBI, Patiala, Punjab, a compromise was arrived at between the Bank and the respondent-company under a One Time Settlement scheme of the Bank, through which sums of Rs. 6 crores and Rs. 1.25 crores were deposited by the respondents and acknowledged by the Bank vide letter dated 11.11.2009. Thereafter the Bank released the securities and guarantees of the respondents, withdrew the recovery proceeding pending in the DRT and stated vide the aforesaid letter dated 11.11.2009 that nothing was due from the respondents to the Bank. An application filed by respondent No.1 for compounding of offences under Section 320(2) of IPC, was dismissed by the Trial Court on the ground that Section 471 read with 468 of IPC is a non-compoundable offence.

6. Thereafter, the respondents approached the High Court, invoking its power under Section 482 of the Criminal Procedure Code, 1973 (in short `Cr.P.C.) for quashing FIR No.SIA-2001-E-0006 dated 28.12.2001 and also the resultant proceedings pending before the Court of learned Special Judicial Magistrate, CBI, Patiala, Punjab, on the basis of aforesaid settlement. The High Co