Settlement-based quashing of criminal proceedings made conditional on claimant affidavits and secured disbursement before termination.

In a settlement-driven prosecution under Section 482 CrPC, quashing of the FIR-based criminal proceedings was made conditional on the affected claimants first filing affidavits stating that they had no objection to the proceedings being quashed against the petitioner. The deposited amount was directed not to be disbursed until those affidavits were filed and the High Court passed the quashing order, and the petitioner was allowed to participate to verify the genuineness of the claimants and payments. The arrangement therefore linked termination of the criminal proceedings to secured payment and confirmed claimant consent.

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Issues: Whether the criminal proceedings arising out of the FIR could be quashed in favour of the petitioner on the claimants filing affidavits expressing no objection, and whether disbursement of the deposited amount should be deferred until such affidavits were filed.

Analysis: The proceedings under Section 482 of the Code of Criminal Procedure, 1973 were considered in the context of a settlement affecting 136 claimants. The Court accepted the arrangement that the claimants would first file affidavits stating that they had no objection to quashing of the criminal proceedings insofar as the petitioner was concerned. It was also directed that the amount deposited should not be disbursed until the affidavits were filed and the High Court passed the quashing order. The petitioner was permitted to participate in the process to verify the genuineness of the claimants and the payments.

Conclusion: The criminal proceedings were directed to be quashed by the High Court after the claimants filed affidavits of no objection, and disbursement of the deposited amount was made conditional upon that step.

Final Conclusion: The petition was disposed of by preserving the settlement-based route to quashing, while ensuring that payment to the claimants preceded the termination of the criminal proceedings.

Ratio Decidendi: In a settlement-driven prosecution, quashing may be ordered subject to the affected claimants affirming no objection by affidavit and the Court ensuring that monetary disbursement is secured before the proceedings are terminated.

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