2022 (2) TMI 890 - HC - Indian Laws

Court quashes FIR after settlement, citing abuse of legal process.

Deepak Versus State of Haryana and another

The court allowed the petition for quashing the FIR under Section 174-A IPC and consequential proceedings. It held that continuing the proceedings after ... Dishonor of Cheque - amicable settlement between the parties arrived at - Section 138 of the Negotiable Instruments Act, 1881 - HELD THAT:- A perusal of the judgment in BALDEV CHAND BANSAL VERSSTATE OF HARYANA AND ANOTHER US [2019 (1) TMI 1949 - PUNJAB & HARYANA HIGH COURT] would show that in a similar case where the FIR had been registered under Section 174-A IPC in view of the order passed in proceedings under Section 138 of the Act, while declaring the petitioner therein as proclaimed offender in the said proceedings, a Co-ordinate Bench after relying upon various judgments observed that once the main petition under Section 138 of the Act stands withdrawn in view of an amicable settlement between the parties, the continuation of proceedings under Section 174-A IPC is nothing but an abuse of the process of law. The said aspect was one of the main consideration for allowing the petition and setting aside the order declaring the petitioner therein as proclaimed person as well as quashing of the FIR under Section 174-A IPC - A perusal of the relevant extract of the above judgment would show that where the main case was dismissed for want of prosecution, it was observed that the continuation of proceedings under Section 174-A IPC shall be an abuse of the process of court. In the present case, it is not in dispute that respondent No.2 had filed complaint under Section 138 of the Act of 1881 for dishonour of cheque dated 15.01.2013 amounting to ₹ 66,250/- and it is in the said proceedings that the order dated 15.11.2019 (Annexure P-4) was passed vide which the petitioner was declared as proclaimed offender and direction was given to SHO concerned to register an FIR and in pursuance of the said order, the present FIR No.691 dated 19.11.2019 (Annexure P-5) was registered under Section 174-A of the IPC - Since, the proceedings under Section 138 of the Act of 1881 have been withdrawn and the present FIR has been registered on account of non-appearance of the petitioner, this Court feels that continuance of the proceedings in the present FIR would be an abuse of process of the Court. The present petition is allowed. Issues:Petition for quashing of FIR under Section 174-A IPC and consequential proceedings arising therefrom.Analysis:The petitioner filed a petition under Section 482 of Cr.P.C. seeking to quash FIR No. 691 dated 19.11.2019 registered under Section 174-A of the Indian Penal Code at Police Station Ballabgarh City, District Faridabad, along with all consequential proceedings. The petitioner had settled a complaint under Section 138 of the Negotiable Instruments Act, 1881, after the cheque was dishonored. Despite settling the matter and not appearing in court, the respondent-Bank pursued the case, leading to the petitioner being declared a proclaimed person and the FIR being lodged. However, the complaint was later withdrawn by the bank, and full payment was made by the petitioner. The petitioner sought quashing of the FIR based on these developments.The court referred to a previous judgment in a similar case where it was held that once the main petition under Section 138 of the Act stands withdrawn due to an amicable settlement, continuing proceedings under Section 174-A IPC would be an abuse of the legal process. Another judgment highlighted that if a main case is dismissed for want of prosecution, continuing proceedings under Section 174-A IPC would also constitute an abuse of the court process. In the present case, the complainant withdrew the complaint under Section 138 of the Act of 1881 after the matter was compromised, leading to the quashing of the FIR being sought by the petitioner.Considering the withdrawal of the complaint under Section 138 of the Act of 1881 and the subsequent registration of the FIR due to the petitioner's non-appearance, the court found that continuing the proceedings in the FIR would amount to an abuse of the court process. Referring to relevant legal authorities and the circumstances of the case, the court allowed the petition and ordered the quashing of FIR No. 691 dated 19.11.2019 registered under Section 174-A of the IPC at Police Station Ballabgarh City, District Faridabad, along with all consequential proceedings arising therefrom. All pending miscellaneous applications were disposed of in light of the judgment.