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2025 Supreme(Gau) 1028

THE GAUHATI HIGH COURT, (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH), 
(ITANAGAR BENCH)
N. UNNI KRISHNAN NAIR, J.
Hemmar Lomi, Son of Late Tossen Lomi and Anr. – Petitioner 
Versus
The State of AP, represented by the PP of AP – Respondent 
Crl.Petn. No.68 Of 2025
Decided On : 27-05-2025

Advocates Appeared:
For the Petitioner:Tamo Taggu, R Karga, Licha Rakap, Geba Lomi Advocate
For the Respondent: P P of AP.

Quashing of proceedings for serious offenses like counterfeiting is not permissible even if a settlement is reached, as such offenses affect society at large.

Headnote:(A) Indian Penal Code - Sections 489B and 489C - Criminal Petition to quash an FIR for counterfeiting currency - Informant entered into a settlement with the accused, but the serious nature of the charges prevents quashing of proceedings - The allegations have a societal impact and cannot be characterized as civil in nature. (Paras 4, 6, 10, 11)

(B) Quashing of Criminal Proceedings - High Court's inherent powers under Section 528 of the Bharatiya Nagarik Suraksha Samhita (BNSS), 2023 - Such powers must be exercised cautiously to prevent abuse of process and secure justice. The inherent power should not be invoked where serious crimes are involved. (Paras 8, 10)

Facts of the case:
The petitioners sought to quash the FIR for counterfeiting after entering a settlement agreement, asserting that the dispute was resolved between them. The FIR alleged the possession and circulation of counterfeit currency notes.

Findings of Court:
The court ruled that the nature of the offense was serious with societal implications, necessitating the continuation of criminal proceedings.

Issues: Whether the amicable settlement warrants the quashing of the FIR in light of the serious charges of counterfeiting against the petitioner.

Ratio Decidendi: The court emphasized that serious crimes, especially those affecting society, cannot be quashed based on a private settlement, as this would undermine the justice system and public interest.

Result: The Criminal Petition is dismissed.

Table of Content
1. details of the criminal accusation (Para 2 , 3)
2. reliance on settlement agreement (Para 4)
3. scope of court's inherent power (Para 5 , 6)
4. supreme court's guidance on quashing (Para 7)
5. nature of offences and quashing limitations (Para 8 , 9)
6. impact on criminal justice system (Para 10)
7. final decision on the petition (Para 12)

JUDGMENT :

Heard Mr. T. Taggu, learned counsel appearing for the petitioners. Also heard Ms. L. Hage, learned Additional Public Prosecutor, appearing for the state respondent.

2. The present criminal petition has been instituted, praying for quashing of the F.I.R., dated 09.01.2021, lodged before the Police of the Itanagar Police Station, leading to registration of Itanagar Police Station Case No. 8/2021, under Sections 489B/489C of the INDIAN PENAL CODE (IPC).

3. The brief facts requisite for adjudication of the issues arising in the present proceeding is noticed as under.

Shri Tarh Tagung, the petitioner No. 2 herein, had lodged an F.I.R. on 07.01.2021, inter alia alleging that the petitioner No. 1 herein, was caught with fake notes (Rs. 500 notes) while purchasing a packet of cigarette from his shop (Gumti), situated near Dokum Baptist Church at around 9 P.M. On receipt of the said F.I.R., the Police of Itanagar Police Station registered Itanagar Police Station Case No. 08/2021, under Sections 489B/489C of the IPC. The investigation in connection with the said case is presently underway. The materials brought on record reveal that during the course of investigation, the Police had recovered another 5 (five) numbers of fake currency notes, all of denomination Rs. 500 from the vehicle of the petitioner No. 1, herein. It is also revealed that further 4 (four) persons were arrested and one of the persons who was arrested was the wife of the petitioner No. 1.

The petitioners have instituted the present proceeding by contending that the informant, in Itanagar Police Station Case No. 08/2021, Shri Tarh Tagung, the petitioner No. 2 herein, had entered into a settlement agreement with the petitioner No. 1 and had resolved to settle their differences and the resolution of the differences was reduced to writing in the form of a settlement agreement, dated 06.07.2024, executed by the petitioner No. 1 and the petitioner No. 2, i.e. the accused and the informant in Itanagar Police Station Case No. 08/2021.

In terms of the said agreement, as reached between the petitioners herein, it was resolved that they would take steps for quashing of the FIR lodged against the petitioner No. 1 by the petitioner No. 2. The petitioner No. 1, relying on the said settlement agreement and an affidavit sworn by the petitioner No. 2, wherein, he had undertaken that he would not raise any further grievance against the petitioner No. 1, has prayed for quashing of the proceedings in the Itanagar Police Station Case No. 08/2021.

4. It is the submission of the learned counsel for the petitioners that the issues arising in the matter between the petitioner No. 1 and the petitioner No. 2, having been resolved and such resolution also having been reduced in writing in the form of a settlement agreement, dated 06.07.2024, this Court would be pleased to exercise its inherent powers under Section 528 of the Bharatiya Nagarik Suraksha Samhita( BNSS ), 2023, to quash the proceedings in Itanagar Police Station Case No. 08/2021.

5. I have heard the learned counsels for the parties and also produced the materials available on record.

6. While it is a settled position of law that this Court in exercise of its inherent powers under Section 528 of the BNSS , 2023, is empowered, in a given case, to quash the criminal proceedings involved, however, such power is circumscribed and is to be so invoked with the sole purpose to prevent abuse of the process of Court and otherwise, to secure the ends of justice.

7. The Hon'ble Supreme Court in the case of Gian Singh V. State of Punjab and Anr. , reported in (2012) 10 SCC 303, had categorical

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