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2023 Supreme(Gau) 721

IN THE GAUHATI HIGH COURT (THE HIGH COURT OF ASSAM: NAGALAND: MIZORAM & ARUNACHAL PRADESH)
SUSMITA PHUKAN KHAUND, J.
Muchiar Rahman Mallik S/o Lt. Nur Mohammad Mallik – Appellant
Versus
The State Of Assam And Ors – Respondent
Crl. Pet 1248 of 2022
Decided on : 27-07-2023

Advocates:
Advocate Appeared:
For the Appellant :Mr. A. Islam Advocate
For the Respondent: Mr. B. Sarma, Mr. S. Hussain

Headnote:

Section 482 Cr.P.C - Quashing of FIR - Financial Dispute - Private in Nature - Abuse of Process of Court - Settlement between Parties - Abuse of Process of Court - Financial and Economic Well-being of the State - [KEYWORD] - [FINANCIAL DISPUTE] - [Section 482 Cr.P.C] - [The court quashed the FIR and related proceedings based on the settlement between the parties, considering the financial dispute as predominantly private in nature and the possibility of conviction as remote, thus preventing an abuse of the process of the court.]

Fact of the Case:

The petitioner was accused of not handing over rented rooms to the respondent as agreed, leading to the registration of an FIR. However, the parties settled their dispute, and the petitioner returned the amount to the respondents. The court considered the financial dispute as predominantly private in nature and quashed the FIR and related proceedings.

Finding of the Court:

The court found that the parties had settled their dispute, and the financial dispute was predominantly private in nature. It concluded that the possibility of conviction was remote, and further proceedings would be an abuse of the process of the court.

Issues: The main issue was the quashing of the FIR and related proceedings based on the settlement between the parties and the nature of the financial dispute.

Ratio Decidendi: The court's decision was based on the settlement between the parties, the nature of the financial dispute as predominantly private, and the remote possibility of conviction, preventing an abuse of the process of the court.

Final Decision: The court quashed the FIR dated 02.11.2014, charge-sheet No. 290/2021, and the order of cognizance dated 09.05.2022, based on the settlement between the parties and the nature of the financial dispute as predominantly private in nature.

JUDGMENT :

1. Heard Mr. A. Islam, learned counsel for the petitioner as well as Mr. B. Sarma, learned Addl. P.P. for the respondent no. 1. Also heard Mr. S. Hussain, learned counsel for the respondent nos. 2 and 3.

2. The petitioner has filed this application under Section 482 Cr.P.C with prayer for quashing of the impugned FIR dated 02.11.2014 registered as Dispur P.S. Case No. 2372/2014, charge-sheet No. 290/2021 dated 11.09.2021, the order of cognizance dated 09.05.2022 passed in PRC Case No. 1353/2022 by the learned Judicial Magistrate 1st Class, Kamrup (M) Guwahati.

3. The FIR unfolds that the respondent no. 2 had taken on rent two rooms for business purpose from the petitioner and an amount of Rs. 14.50 Lakhs was paid by the respondent no. 2 to the petitioner and a money agreement was executed. The petitioner however, did not hand over the rooms to the respondent no. 2 as agreed and the same rooms were let out on rent to another tenant. On the basis of this FIR, the Dispur P.S. 2372/2024 was registered against the petitioner. The deed of agreement is marked as Annexure-1. It is submitted that the respondent no. 2, is the informant and the respondent no. 3 is the informant’s father. When the respondent no. 3 failed to pay the entire amount of consideration of Rs. 50 Lakhs within one year, the petitioner who was facing financial difficulties to continue the construction of the building let out the room to another tenant and this fact was in the knowledge of the respondent.

4. However, the respondents filed the Title Suit being the T.S. No. 355/2014 with prayer for specific performance of contract and recovery of possession and permanent injunction. The Title suit was also withdrawn later by the respondent. During the continuation of the title suit, the present FIR was lodged against the petitioner. Now, the petitioner and the respondent have jointly filed an agreement of settlement, which is marked as Annexure-4. The respondents have acknowledged the money returned by the petitioner through Annexure-4, money receipt. Rs. 14.50 Lakhs was returned by the petitioner to the respondents. At present, the respondents are also not willing to proceed with the present case being T.S. 355/2014. Both the parties have amicably settled their disputes. Possibility of conviction appears to be remote and bleak, and further proceedings will indeed be an abuse of the process of the Court. It has been observed by the Hon’ble Supreme Court in Parbatbhai Aahir @ Parbatbhai Bhimsingbhai Karmur and Ors. Vs. State of Gujarat and Another in Criminal Appeal No. 1723/2017

“15. The broad principles which emerge from the precedents on the subject, may be summarised in the following propositions :

(i) Section 482 preserves the inherent powers of the High Court to prevent an abuse of the process of any court or to secure the ends of justice. The provision does not confer new powers. It only recognises and preserves powers which inhere in the High Court;

(ii) The invocation of the jurisdiction of the High Court to quash a First Information Report or a criminal proceeding on the ground that a settlement has been arrived at between the offender and the victim is not the same as the invocation of jurisdiction for the purpose of compounding an offence. While compounding an offence, the power of the court is governed by the provisions of Section 320 of the Code of Criminal Procedure, 1973. The power to quash under Section 482 is attracted even if the offence is non-compoundable.

(iii) In forming an opinion whether a criminal proceeding or complaint should be quashed in exercise of its jurisdiction under Section 482, the High Court must evaluate whether the ends of justice would justify the exercise of the inherent power;

(iv) While the inherent power of the High Court has a wide ambit and plenitude it has to be exercised;

(i) to secure the ends of justice or

(ii) to prevent an abuse of the process of any court;

(v) The decision as to whether a complaint or First Informati

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