Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2023 Supreme(Del) 2520

IN THE HIGH COURT OF DELHI AT NEW DELHI
Dinesh Kumar Sharma, J.
Ankur Saluja – Appellant
Versus
State & Anr. – Respondents
Cr.M.C. 942 of 2020 & Cr.M.A. 3813 of 2020 (stay) & Cr.M.C. 5103 of 2022
Decided On : 22-02-2023

Advocates appeared:
Mr. Rahul Sharma with Mr. Prabhash Malik and Mr. Shubham Sharma, Advocates, for the Petitioner.
Mr. Raghuvinder Varma, APP, for the State.
Mr. Sahil Giri, Advocate, for the Respondent No.2.

Courts may quash proceedings if parties have entered into a settlement at their own free will in a private dispute, provided the settlement is within the four corners of the law.

Headnote:
Settlement Agreement - Quashing of FIR - Section 138 Negotiable Instrument Act, 1881 - [IPC 420, Negotiable Instrument Act 1881] - The court discussed the settlement agreement between the parties and quashed the FIR under Section 420 IPC and directed the petitioner to move an application for recall of order of proclamation in light of the settlement.
Fact of the Case:

Disputes arose due to alleged non-payment by the petitioner Ankur Saluja, leading to an FIR under Section 420 IPC and a complaint under Section 138 Negotiable Instrument Act, 1881. The parties entered into a settlement agreement mediated by the Delhi High Court Mediation & Conciliation Centre.
Finding of the Court:

The court found that as the parties had reached an amicable settlement out of their own free will in a private dispute, there was no purpose in continuing with the trial. The court quashed the FIR and directed the petitioner to move an application for recall of order of proclamation in light of the settlement.
Issues: Dispute over non-payment, settlement agreement, quashing of FIR, recall of order of proclamation.
Ratio Decidendi: Courts may quash proceedings if parties have entered into a settlement at their own free will in a private dispute, provided the settlement is within the four corners of the law.
Final Decision: The petition stands disposed of, and the FIR under Section 420 IPC is quashed. The petitioner is directed to move an application for recall of order of proclamation in light of the settlement.

JUDGMENT

Dinesh Kumar Sharma, J. (Oral)--Briefly stated facts of the case are that the disputes had arisen on account of the alleged non-payment by the petitioner Ankur Saluja. These disputes gave rise to the FIR bearing No.298/2018 under Section 420 IPC, PS K.N. Katju Marg and a complaint under Section 138 Negotiable Instrument Act, 1881 bearing CC No.198/2018 titled as Bhushan Tyagi vs. Ankur Saluja. In the complaint under Section 138 Negotiable Instrument Act, 1891, the petitioner was declared a proclaimed offender. Aggrieved of this, the petitioner filed Crl.M.C.942/2020 for quashing of FIR bearing No.298/2018 under Section 420 IPC.

2. Learned counsel for the parties submit that pursuant to the reference of the matter to the Delhi High Court Mediation & Conciliation Centre, the parties have entered into the settlement vide Settlement Agreement dated 02.09.2022.

3. The terms and conditions of the settlement agreement dated 02.09.2022 are as under:

1. The First Party shall pay a sum of Rs.20,00,000/- (Rupees "Twenty Lakhs Only) to the Second Party towards the full and final settlement amount in respect to all the outstanding of the Second Party and also for the settlement of all the aforesaid cases including the FIR bearing No. 298/2018 under section 420 IPC, P.S. K.N. Katju Marg, Delhi.

2. The First Party shall pay a sum of Rs.20,00,000/- (Rupees Twenty Lakhs Only) - in four instalments by way of demand draft/RTGs in the following manner:

(a) Rs.5,00,000/- (Rupees Five Lakhs Only) at the time of signing the Settlement Agreement which has been paid today by First Party to the Second Party. The Second Party acknowledges the receipt of Demand Draft No. 012644 drawn on IDBI Bank, Paschim Vihar, Delhi dated 02.09.2022 which is annexed herein as Annexure A.

(b) Rs.5,00,000/- (Rupees Five Lakhs Only) at the time of recording of No Objection of Second Party before the Hon'ble High Court at the time of quashing of FIR bearing No. 298/2018 under section 420 IPC, P.S. K.N. Katju Marg, Delhi on or before 30.09.2022.

(c) Rs.5,00,000/- (Rupees Five Lakhs Only) before the Hon'ble High Court of Delhi in Crl. M.C. 942/2020 at the time of recording of No Objection statement of the Second Party for setting aside the order of proclamation and all consequential proceedings on or before 30.10.2022.

(d) Rs.5,00,000/- (Rupees Five Lakhs Only) before the court of Metropolitan Magistrate-01, Rohini Court, Delhi at the time of withdrawal of the complaint bearing no. 198/2018 under section 138 of Negotiable Instrument Act on or before 30.11.2022 by the Second Party.

3. It is further agreed between the parties that the Second Party shall cooperate and take all necessary steps (which shall not be limited to filing of any affidavits/making any statements/or personally appearing before any authority/court/Tribunal/Police authorities) for withdrawing the allegations/Complaint/FIR as per fulfilling the terms and conditions mentioned in the present Agreement.

It is further agreed that the First party shall take all necessary steps for fulfilling the terms of Settlement Agreement within the times stipulated in it.

4. Both the parties agree and undertake that they have settled all the disputes and grievances against each other amicably and they shall not file any proceedings, make statements, RTI's, applications whether Civil or Criminal, if any against each other.

5. That both the parties undertake to abide by the Settlement Agreement and in the event First Party defaults in the fulfilment of the same, the Second Party shall be entitled to forfeit the amount received by him and continue with the prosecution of his cases and in the event Second Party defaults in fulfilment of the terms of the Settlement Agreement the First Party shall be entitled to refund of the amount paid by him to the Second Party. The defaulting party shall also be liable for the contempt proceedings as per law.

6. This Settlement Agreement shall be binding upon both the parties and for the benefit

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