IMPORTANT POINT
Criminal breach of trust and cheating – Money cannot be recovered in a civil dispute between parties by filing First Information Report and seeking help of Police.

ORDER :

1. Leave granted.

2. This appeal arises from the order passed by the High Court of Judicature at Allahabad dated 7-3-2025 by which the High Court in a Writ Petition filed by the appellant - herein praying for quashing of the First Information Report lodged by the Respondent No. 4 - herein for the offence punishable under Sections 60 (b), 316(2) and 318 (2) of the Bharatiya Nyaya Sanhita, 2023 (for short “the BNS 2023”) directed the parties to go for mediation and simultaneously also directed the appellant - herein to hand-over a demand draft of Rs. 25,00,0000/- (Rupees Twenty Five Lakh only) for the purpose of mediation to the Respondent No. 4 (original complainant).

3. The impugned order passed by the High Court reads thus:

“1. Heard Ms. Sana Raees Khan, learned counsel for the petitioner and learned A.G.A. appearing for the State respondents.

2. The petitioner, by means of this writ petition under Article 226 of the Constitution of India, has invoked the inherent jurisdiction of this Court with prayer to quash the impugned First Information Report dated 09.01.2025 registered as Case Crime No.12 of 2025 under Sections 60 (b), 316(2) and 318(2) of B.N.S. 2023, P.S. Hariparwat, District Agra. Further request is made to issue direction to the respondents not to arrest the petitioner.

3. Learned counsel for the petitioner submits that the petitioner is a co-founder and production head of M/s. Karma Media and Entertainment LLP, which is primarily engaged in production of motion picture. The respondent no. 4 (informant) is running the business under the name and style of M/s Polaroid Media, which is engaged in the business of financing, co- production and co- financing media projects. The informant has lodged the impugned FIR by dragging a civil dispute inter-se the parties into criminal case. A bare perusal of the impugned FIR, no criminal offence is made out against the petitioner. It is submitted that the Court must ensure that criminal prosecution is not used as an instrument of harassment or for seeking private vendetta or with an ulterior motive to pressurise the accused. Even though the proceedings are pending and neither the charge-sheet nor the final report has been submitted in the present case. In support of her submission she has placed reliance on the judgments of Apex Court in Delhi Race Club (1940) Ltd. vs. State of Uttar Pradesh, (2024) 0 Supreme 689 (Paras 25, 28, 29 and 30) and in the case of Radheyshyam and Others vs. State of Rajasthan and Another, Criminal Appeal No. 3020 of 2024 decided on July 22, 2024. She lastly submits that as there is a commercial dispute and both the parties are reputed in the society, instead of dragging the matter in the criminal proceeding. it would be apt that the matter may be referred to the Mediation and Conciliation Centre of this Court.

4. In response to the aforesaid request, we have asked learned counsel for the petitioner to seek instructions from the petitioner for upfront payment to the informant so that the matter may be referred to the Mediation and Conciliation Centre and we have adjourned the proceeding. Later on, on the instructions, learned counsel for the petitioner submits that the petitioner is inclined to pay Rs. 25 lakhs within three weeks from today.

5. Accordingly, the matter is referred to the Mediation Centre of this Court with the direction that after deposit of such amount by the petitioner, the Mediation Centre shall make all possible efforts to conclude the mediation and conciliation proceedings expeditiously, preferably within a period of three months.

6. Let the parties be present at the Mediation and Conciliati