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2026 Supreme(Online)(Kar) 21368

THE HIGH COURT OF KARNATAKA
Hanchate Sanjeevkumar, J
Yallaling Shankar Lali – Appellant
Versus
State of Karnataka – Respondent
CRL.P No. 102406 of 2025



Advocates:
For the Appellants/Petitioners: Sachchidanand Babaji Patil P.
For the Respondents: Abhishek Malipatil, Avinash M. Angadi

Inherent powers of the High Court to quash criminal proceedings for non-compoundable offences, including those under special statutes like the SC/ST Act, can be exercised if the dispute is predominantly private and financial in nature and the parties have amicably settled.

Headnote:(A) Bharatiya Nagarik Suraksha Sanhita, 2023 - Section 528 - Bharatiya Nyaya Sanhita - Sections 115(2), 333, 352, 351(3) - SC & ST (Prevention of Atrocities) Amendment Act, 2015 - Sections 3(2)(va) and 3(2)(vii) - Quashing of FIR based on compromise - Private monetary dispute - Dispute found to be predominantly financial, arising from a money transaction - Complainant voluntarily settled the matter - No adverse effect on societal interests - Proceedings quashed in interest of justice (Paras 6, 7)

Facts of the case:
The petitioner approached the court to quash an FIR registered for various offences including those under the special statute, following an amicable settlement between the parties. The core dispute originated from a financial/monetary transaction and a related cheque bounce case, rather than true caste-based animosity.

Findings of Court:
The court observed that while the offences involved were non-compoundable, the matter was essentially a private financial dispute. Following the precedent established by the Supreme Court, the court exercised inherent powers to quash the proceedings to prevent abuse of the process of law and to secure the ends of justice, noting the complainant's voluntary consent and reimbursement of state-provided compensation.

Issues: Whether criminal proceedings for non-compoundable offences, including those under special legislation, can be quashed based on a private compromise when the underlying dispute is essentially financial.

Ratio Decidendi: If a dispute is predominantly private and civil in nature, even if involving non-compoundable offences or special statutes, the High Court possesses the inherent power to quash proceedings to secure the ends of justice provided it does not harm public interest and the settlement is voluntary.

Result: Petition allowed; proceedings quashed.

Table of Content
1. parties can move to quash firs based on amicable settlement of private disputes. (Para 1 , 2)
2. courts can quash non-compoundable offences by invoking inherent powers if disputes are private. (Para 3 , 4 , 5)
3. financial/private nature of disputes allows quashing even under special statutes. (Para 6 , 7)

THIS CRIMINAL PETITION IS FILED UNDER SECTION 528 OF THE BHARATIYA NAGARIKA SURAKSHA SANHITA, 2023, PRAYING TO QUASH THE FIR IN MARKET P.S.CRIME NO.89/2025 DATED 08.05.2025 FOR THE OFFENCES PUNISHABLE UNDER SECTIONS 115(2), 333, 352, 351(3) OF THE BHARATIYA NYAYA SANHITA AND UNDER SECTIONS 3(2)(va), 3(2)(vii) OF THE SC & ST (PREVENTION OF ATROCITIES) AMENDMENT ACT 2015 AS AGAINST THE PETITIONER/ACCUSED IN THE INTEREST OF JUSTICE AND EQUITY.

THIS PETITION COMING ON FOR ADMISSION, THIS DAY ORDER WAS MADE THEREIN AS UNDER:

CORAM: THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR

ORAL ORDER

1. This petition is filed by the petitioner/accused under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 20231Hereinafter referred to as “BNSS, 2023”, seeking to quash the entire proceedings and praying for the following relief:

“WHEREFORE, it is most humbly prayed that this Hon’ble Court be pleased to Quash the FIR in Market PS Crime No.89/2025 dated 08.05.2025 for the offences punishable under Sections 115(2), 333, 352, 351(3) of the Bharatiya Nyaya Sanhita & under Sections 3(2)(va), 3(2)(vii) of the SC & ST (Prevention of Atrocities) amendment act 2015 as against the Petitioner/Accused in interest of justice and equity”.

2. The complainant and the accused are present before this Court along with their respective learned counsel. They have submitted a memorandum of compromise petition under Section 359(1) read with Section 528 of BNSS, 2023, stating that they have amicably settled the matter. The accused has prayed to quash the entire proceedings, to which the complainant has consented. Therefore, both the complainant and the accused pray that the criminal proceedings be quashed in view of the settlement.

3. Certain offences are alleged under the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, which are non-compoundable.

4. The Hon’ble Supreme Court in the case of The Hon’ble Supreme Court in the case of Ramgopal and Another vs. State of Madhya Pradesh 22021 SCC Online SC 834 has observed at Paragraph Nos.10 to 13, as follows:

“10. The compendium of these broad fundamentals structured in more than one judicial precedent, has been recapitulated by another 3-Judge Bench of this Court in State of Madhya Pradesh vs. Laxmi Narayan & Ors3(2019) 5 SCC 688 elaborating:

(1) That the power conferred under Section 482 of the Code to quash the criminal proceedings for the non-compoundable offences under Section 320 of the Code can be exercised having overwhelmingly and predominantly the civil character, particularly those arising out of commercial transactions or arising out of matrimonial relationship or family disputes and when the parties have resolved the entire dispute amongst themselves;

(2) Such power is not to be exercised in those prosecutions which involved heinous and serious offences of mental depravity or offences like murder, rape, dacoity, etc. Such offences are not private in nature and have a serious impact on society;

(3) Similarly, such power is not to be exercised for the offences under the special statutes like the Prevention of Corruption Act or the offences committed by public servants while working in that capacity are not to be quashed merely on the basis of compromise between the victim and the offender;

(4) Xxx xxx xxx

(5) While exercising the power under Section 482 of the Code to quash the criminal proceedings in respect of non-compoundable offences, which are private in nature and do not have a serious impact on society, on the ground that there is a settlement/compromise between the victim and the offender, the High Court is required to consider the antecedents of the accused; th

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