Cyber crimes and economic offences involving digital impersonation and fraud are not mere private disputes and cannot be quashed solely on the basis of a compromise, as they impact the digital ecosystem and public confidence.

Judgment

1. The present criminal miscellaneous petitions have been filed under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (corresponding to Section 482 of the Code of Criminal Procedure, 1973) seeking quashing of FIR No.07/2024 dated 25.06.2024 registered at Cyber Police Station, Jodhpur East for offences punishable under Sections 384, 419, 420 and 120-B IPC and Sections 66-C and 66-D of the Information Technology Act, 2000 along with all consequential proceedings.

2. Learned counsel for the petitioners submits that the dispute between the petitioners and respondent No.2 has been amicably resolved and the parties have entered into a compromise. It is submitted that the complainant does not wish to pursue the present criminal proceedings any further and therefore, in view of the compromise arrived at between the parties, the FIR and all consequential proceedings deserve to be quashed in exercise of the inherent powers of this Court.

3. Per contra, learned Public Prosecutor has opposed the petitions and submitted that the allegations contained in the FIR disclose commission of offences not only under the Indian Penal Code, 1860 but also under the provisions of the Information Technology Act, 2000. It is also submitted that cyber offences are not merely a private dispute between individuals but affect public confidence in digital systems and electronic transactions and therefore cannot be quashed merely on the basis of compromise arrived at between the parties.

4. I have heard learned counsel for the parties and have carefully perused the material available on record.

5. It is well settled that the High Court, in exercise of its inherent powers under Section 482 Cr.P.C. or the corresponding provisions of Section 528 BNSS, may quash criminal proceedings where the dispute between the parties is essentially private in nature and the continuation of criminal proceedings would amount to abuse of the process of law.

6. The Hon’ble Supreme Court in Gian Singh vs. State of Punjab , (2012) 10 SCC 303 has held that criminal proceedings involving offences which are predominantly of a civil character or arise out of matrimonial, commercial or family disputes may be quashed in exercise of inherent powers if the parties have settled the matter. Similarly, in Narinder Singh & Ors. vs. State of Punjab, (2014) 6 SCC 466, the Apex Court laid down guidelines governing the exercise of such powers and observed that quashing on the basis of compromise may be permissible in disputes having overwhelmingly civil flavour. However, such power is to be exercised with caution and does not extend to cases involving serious offences or offences having a wider societal impact.

7. Further, in the matter of Parbatbhai Aahir vs. State of Gujarat , (2017) 9 SCC 641, the Hon’ble Supreme Court held that while considering quashing of criminal proceedings on the basis of compromise, the High Court must examine the nature and gravity of the offence, and also clarified that economic offences affecting the financial well-being of the State cannot be treated as mere private disputes and the Court would be justified in declining quashing in such cases.

“(x) There is yet an exception to the principle set out in propositions (viii) and (ix) above. Economic offences involving the financial and economic well-being of the state have implications which lie beyond the domain of a mere dispute between private disputants. The High Court would be justified in declining to quash