The High Court may exercise its inherent powers under Section 528 of the BNSS (formerly Section 482 CrPC) to quash criminal proceedings arising from commercial or financial disputes if the parties have reached a voluntary settlement and the offence is not of a heinous nature.

ORAL ORDER

1. Learned advocate Kavan K. Patel states that he has received instruction to appear for the respondent no.1 – original complainant and he seeks permission to file his appearance as well as affidavit. Accordingly, he is permitted. Registry to accept.

2. Rule. Learned APP Mr. Vivek Bhamare and learned advocate Mr. Kavan Patel waive service of notice of rule for the respective respondents.

3. By way of this application, the applicant has prayed for quashing of the FIR being C.R.No. 11191011260075 of 2026 registered at DCB Police Station, Ahmedabad City for the offence punishable under Section 316(2), 316(5), 54 of the BNS, 2023 on the ground that the parties have amicably settled their dispute.

4. Heard learned advocate Mr. Vivek Bhamare for the applicant, learned APP Ms.C.M.Shah for the respondent no.1 – State and learned advocate Mr.Kavan Patel for the respondent no.2 – original complainant.

5. Learned advocate Mr. Vivek Bhamare for the applicant and learned advocate Mr. Kavan Patel for the respondent no. 2 – original complainant jointly submit that the complainant had filed the complaint against in all 07 persons. The FIR shows that there were business transactions between the complainant and the 07 persons. Learned advocate for the applicant further submits that the original accused no.2 had entered into the business transaction with the complainant and in all, an amount of Rs.11,80,462/- was outstanding with regard to the business transaction from 18.03.2025 to 08.08.2025 and out of Rs.11,80,462, an amount of Rs.1,00,000/- was repaid and an amount of Rs.10,80,462/- was remained to be repaid. Pursuant to filing of the present FIR, due to intervention of the members of the community, the matter has been amicably settled between the parties and on 24.03.2026, an amount of Rs.9,00,000/- was transferred to the complainant through Online mode in the bank account of the respondent no.2 and rest of the amount has been waived by the complainant and there is no dispute pending between the complainant and the applicant. The respondent no.2 – original complainant does not wish to prosecute the matter further and the compromise has been entered into voluntarily, without any coercion, undue influence or pressure. The respondent no.2 has no objection if the impugned FIR as well as all other consequential proceedings arising pursuant thereto are quashed against the applicant – accused No. 2 only .

6. Learned advocate Mr. Kavan Patel for the respondent no.2 – original complainant submits that the respondent no.2 – original complainant is present before this Court and has produced a copy of affidavit of the respondent no.2 – original complainant.

7. Learned APP Ms.C.M.Shah for the respondent no.1 – State submits that the impugned judgment and order of sentence is just and proper; however, considering the fact that the dispute between the parties is amicably settled, necessary order may be passed.

8. The respondent no.2 – original complainant is present in person before this Court, and on inquiry, submits that the dispute between them has been settled amicably and he does not wish to prosecute the matter qua the applicant – original accused no. 2 further. He admits to the contents of the affidavit and submits that the compromise has been entered into his own free will without any fear, threat and coercion.

9. The affidavit filed by the respondent no. 2 – original complainant reads as under:

“I, I undersigned, Ashokkumar Ranmal Salecha, Aged: 54 Yrs, Male, Occu: Business Having Residence at: M.No204, Royal Jardin, Railway C