2022 (9) TMI 1520 - HC - Indian Laws

FIR Quashed After Parties Settle Embezzlement Dispute; Loan Repaid, No Dues Certificate Issued, Costs Paid to Police Fund.

The court quashed the FIR and related proceedings following an amicable settlement between the parties involved in a dispute over alleged embezzlement and ... Quashing of FIR - Compromise and settlement between parties - Withdrawal of complaint - Consent of Public Prosecutor - Effect of chargesheet on exercise of quashing power - Conditional quashing requiring restoration/production of original document - Imposition of cost as condition for quashingQuashing of FIR - Compromise and settlement between parties - Consent of Public Prosecutor - Effect of chargesheet on exercise of quashing power - FIR No.175/2020 and proceedings therefrom were quashed notwithstanding filing of a chargesheet, in view of settlement between the parties, withdrawal of the complaint and no objection by the State. - HELD THAT: - The Court noted that the parties had amicably settled their disputes and the complainant (Respondent No.2) had sought withdrawal of the complaint. The affidavit of the complainant recording the settlement terms was placed on record and the complainant reiterated his acceptance of the settlement in Court. Learned APP for the State stated he had no objection to quashing. Taking these facts together and observing that quashing would not necessarily entail conviction of the petitioners, the Court exercised its power to quash the FIR and proceedings emanating therefrom despite the fact that a chargesheet had been filed.FIR No.175/2020 registered at EOW, New Delhi and proceedings emanating therefrom are quashed.Conditional quashing requiring restoration/production of original document - Withdrawal of complaint - Imposition of cost as condition for quashing - Quashing was made subject to specified conditions: delivery of the original Resolution to the complainant and payment of costs towards Delhi Police Welfare Fund. - HELD THAT: - The complainant required the original Resolution of M/s Nayati Charitable Trust signed by three trustees to be handed over; the petitioners agreed to deliver that document during the day. The Court imposed a monetary condition of Rs.50,000/- to be paid towards the Delhi Police Welfare Fund and directed that the cost receipt be placed on record before the trial court. These conditions were treated as integral to granting the quash order and to record finality of the compromise and withdrawal.Quash granted subject to handing over the original Resolution to Respondent No.2 and payment of Rs.50,000/- towards Delhi Police Welfare Fund, with the receipt to be filed before the trial court.Final Conclusion: The petition is allowed: FIR No.175/2020 and proceedings thereto are quashed pursuant to the parties' settlement and the State's no objection, subject to production of the original Resolution to the complainant and payment of specified costs; pending applications are disposed of. Issues:1. Dispute arising from alleged embezzlement and misappropriation of loan amount.2. Arrest and subsequent release of the petitioners.3. Settlement between the parties leading to withdrawal of complaint and FIR.4. Agreement for reduction of share capital and settlement of grievances before the National Company Law Tribunal.5. Quashing of FIR and related proceedings.Analysis:1. The judgment pertains to a case involving a dispute arising from alleged embezzlement and misappropriation of a loan amount by the petitioners, along with non-payment of salaries, reduction of equity shareholding, and falsification of accounts. The dispute led to the registration of an FIR against the petitioners based on a complaint by one of the shareholders of the company involved. The petitioners had taken a loan from Yes Bank for the development of a hospital, and subsequent events triggered the complaint and legal actions against them.2. Following the dispute, two of the petitioners were arrested but later released on bail. The parties involved in the case reached an amicable settlement, leading to the withdrawal of the complaint and FIR. The settlement involved the repayment of the loan amount to Yes Bank and the issuance of a No Dues Certificate. Another creditor also discharged the petitioners from their financial obligations, further indicating the resolution of financial disputes.3. The settlement between the parties was formalized through an affidavit filed by the respondent, incorporating all the terms of the agreement. Both parties agreed to abide by the terms and conditions of the settlement, which included the reduction of share capital and the settlement of grievances before the National Company Law Tribunal. The respondent confirmed the settlement in court and expressed no objection to quashing the FIR, subject to certain conditions.4. The petitioners agreed to provide the original Resolution of M/s Nayati Charitable Trust to the respondent and withdrew a complaint filed by certain entities with the Economic Offence Wing. The State's APP had no objection to quashing the FIR, considering that a chargesheet had already been filed. The court, after considering the circumstances and the settlement between the parties, allowed the petition, quashed the FIR, and directed the payment of a cost towards the Delhi Police Welfare Fund.5. In conclusion, the judgment reflects the resolution of a complex legal dispute through an amicable settlement between the parties, leading to the quashing of the FIR and related proceedings. The court's decision was based on the agreement between the parties, the absence of impediments to quashing the FIR, and the overall circumstances of the case.