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2025 Supreme(Online)(Ker) 53409

IN THE HIGH COURT OF KERALA AT ERNAKULAM
C.S.DIAS, J
SGS AGRO FARMS LTD – Appellant
Versus
STATE OF KERALA – Respondent
CRL.MC NO. 9396 OF 2025 | CC NO.55 OF 2020



Advocates:
For the Appellants/Petitioners: S.MUHAMMED HANEEFF, M.H.ASIF ALI, ARAVIND T RAMESH, ASHIK ALI M.H, ASWATHI K.C.
For the Respondents: ITTY PAULSON

The High Court may quash proceedings if the parties to non-heinous offences have amicably settled their disputes, promoting judicial economy.

Headnote:The judgment addresses the inherent powers of the High Court to quash proceedings under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. The case arose from allegations under Section 420 IPC and related provisions, which were amicably settled, thereby deeming continuation of the prosecution unnecessary (paragraph 1-7). Issues of whether such settlements justify quashing proceedings were framed, relying on established precedents which stress that for non-heinous offences and settled disputes, quashing serves justice (paragraph 6). Ultimately, the court allowed the petition, quashing the pending proceedings against the accused (last paragraph).

Table of Content
1. proceedings under the prize chits and money circulation schemes can be quashed if settled amicably. (Para 1 , 2)
2. parties involved confirm resolution of disputes with no objections to quashing. (Para 3 , 4)
3. court evaluates the nature of allegations, settlement, and declines public interest in pursuing prosecution. (Para 5 , 6 , 7)

ORDER

The petitioners are accused Nos. 1 to 8 in C.C.No. 55/2020 on the file of the Special Court of the Additional Chief Judicial Magistrate for the Trial of cases under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 , Thrissur, which has arisen from Crime No. 61/2020 registered by the Town West Police Station, Thrissur District, (‘Trial Court’, for short), alleging the commission of the offences punishable under Section 420 read with Section 34 of the Indian Penal Code and Section 2 (C) of the .

2. The petitioners have invoked the inherent jurisdiction of this Court under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 , to quash all further proceedings in the above case. It is asserted that the dispute that led to the registration of the crime has been amicably settled between the petitioners and the second respondent, who has executed Annexure A2 affidavit, affirming the settlement.

3. I have heard the learned counsel appearing for the petitioners, the learned Public Prosecutor, and the learned counsel for the second respondent.

4. The learned counsel on either side submits that, with the intervention of relatives and well-wishers, the parties have resolved their disputes amicably. The party respondent has no subsisting grievance and does not wish to pursue the prosecution, and has no objection to the proceedings being quashed.

5. The learned Public Prosecutor, on instructions, submits that the second respondent has not appeared before the Investigating Officer and has not given his statement. Therefore, the veracity of the settlement could not be ascertained.

6. The scope and ambit of the inherent powers of this Court to quash criminal proceedings on the ground of settlement between the parties have been authoritatively laid down by the Hon’ble Supreme Court inGian Singh v. State of Punjab [ (2012) 10 SCC 303 ], State of Madhya Pradesh v. Laxmi Narayan and Others [ (2019) 5 SCC 688 ], Naushey Ali v. State of U.P. [ (2025) 4 SCC 78 ], and in a host of judicial pronouncements. It is held that in cases where the offences are not grave or heinous, and where the parties have amicably settled the dispute, to secure the ends of justice, the High Court may invoke its inherent powers to quash the proceedings, particularly if continuation of the prosecution would serve no fruitful purpose.

7. On an overall consideration of the facts and circumstances of the present case, and the materials on record, I am satisfied that: the offences alleged are not heinous or of a serious nature; no public interest or element of societal concern is involved; the chances of conviction are remote in view of the settlement; and the continuation of the proceedings would merely burden the judicial process without advancing the cause of justice. Furthermore, the settlement would promote harmony between the parties and restore peace. Hence, this Court is persuaded to hold that this is a fit case to exercise its inherent jurisdiction.

In the result, the Crl. M.C. is allowed.

Accordingly, Annexure AI Final Report in Crime No. 61/2020 of the Town West Police Station, and all further proceedings in C.C.No. 55/2020 of the Trial Court, as against the petitioners, are hereby quashed.

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