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2025 Supreme(Online)(Chh) 10666

IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
Ramesh Sinha, CJ, Bibhu Datta Guru, J
Atul Kumar Singh – Appellant
Versus
State of Chhattisgarh – Respondent
CRMP No. 316 of 2024



Advocates:
For the Appellants/Petitioners: Mr. Kashif Shakeel
For the Respondents: Mr. Swajit Ubeja, Mr. Kunal Das

The court quashed FIR and proceedings after parties reached a mutual settlement, emphasizing inherent powers to promote judicial efficiency.

Headnote:(A) Code of Criminal Procedure, 1973 - Section 482 - Quashing of FIR - Petitioner sought quashing of FIR and consequential proceedings regarding the charge after parties reached amicable settlement - The court held that continuing proceedings would cause unnecessary hardship as the dispute was resolved. (Paras 11)

(B) Inherent Powers - The High Court has jurisdiction to quash FIR and subsequent proceedings when the parties compromise, thus serving judicial efficiency and fairness. (Paras 10)

Facts of the case:
The petitioner, Director of a liquor company, faced an FIR due to a dispute over destroyed stock. The parties amicably settled the matter, leading to this petition.

Findings of Court:
FIR and pending proceedings concerning the petitioner were quashed as a result of the amicable settlement.

Issues: The main issue addressed was whether to quash judicial proceedings after a compromise was reached.

Ratio Decidendi: The court ruled that proceeding against the petitioner post-settlement serves no useful purpose, affirming the use of inherent powers to quash FIRs under such circumstances.

Result: Petition allowed.

Table of Content
1. facts regarding the petitioner’s business and subsequent dispute with the respondent. (Para 2 , 3 , 4 , 5 , 6)
2. arguments and positions of both parties regarding the petitioner's request. (Para 7 , 8)
3. court observations affirming the settlement and supporting quashing. (Para 9 , 10)
4. final court decision to allow the petition. (Para 11 , 12)

Per Ramesh Sinha, Chief Justice

17/09/2025

1. Heard Kashif Shakeel, learned counsel for the petitioner. Also heard Mr.

Swajit Ubeja, learned Panel Lawyer for the State/respondent No. 1 as well as Mr. Kunal Das, learned counsel for the respondent No. 2 and 3.

2. By this petition under Section 482 of the Code of Criminal Procedure , 1973 (for short, the Cr.P.C.), the petitioner seeks quashing of FIR bearing Crime No. 646/2022 registered at Police Station, Telibandha, District Raipur (Annexure A/1) as well as consequential proceedings of Criminal Case No. 15277/2024, pending against the petitioner including the charge memo dated 10.01.2025 (Annexure P/6), order of cognizance dated 12.09.2024 and order dated 03.03.2025 (Annexure P/8).

3. The facts, in brief, as projected by the petitioner are that the petitioner is the Director of Om Sai Beverages Pvt. Ltd which is involved in the trading of liquors. In the year 2019-2020, there was change in liquor policy and in pursuance to the same the petitioner's Company was granted license for supply of liquor to the Chhattisgarh State Beverages Corporation (for short, the Corporation). The respondent No. 3 Company is also involved in the manufacturing and supply of liquor. Respondent No. 3 came into contact with the petitioner's Company and gave consent to the commence wholesale business of their brands under the FL 10 A License in the State of Chhattisgarh in terms of the agreement entered between the parties. In the year 2020, the Corporation demanded consent letter for transferring the stock of the respondent No. 3 Company which was given by the respondent No.2 being authorised representative of respondent No. 3 Company in favour of petitioner's Company.

4. Certain stock of the respondent No. 3 had already expired while lying in the godown of the Corporation and as per the policy of the Corporation the same is destroyed after intimating the parties after preparing panchnama and inspection by a Committee. A dispute was raised between the parties with regard to the destroyed stock and on basis of suspicion the respondent No. 3 through respondent No. 2 filed complaint before the Police and thereafter before the JMFC under Section 156 (3) of CrPC. The stock was destroyed as per the prevailing practise made under the law but monetary loss was incurred upon the respondents due to which dispute arose between the parties which got escalated resulting into lodging of the present F.I.R. Later on as the petitioners have decided to compensate the losses incurred by the private respondents therefore the parties have arrived into amicable settlement and on 24.01.2024 through a deed of settlement executed by and between the respondent No. 2 & 3 and the petitioner.

5. Mr. Shakeel, learned counsel for the petitioner submits that as the respondent No. 3 Company has authorised respondent No. 2 to act and plead on their behalf to enter into compromise and represent before any authority or Court, in view of the above facts and circumstances, the petitioner has approached this Hon'ble Court by way of the present petition seeking to invoke its inherent powers under Section 482 of the Cr.P.C for quashing the FIR No. 646/2022, registered at Police Station Telibandha, District Raipur, qua the petitioner and consequential proceedings/orders arising there from.

6. It is further submitted by Mr. Shakeel that the Police has filed the charge-

sheet against the petitioner before the competent Magistrate and on 12.09.2024 the learned JMFC Raipur has taken cognizance of the case and Criminal Case No. 15277/2024 has been registered against the petitioner under Sectio

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