2024 (10) TMI 138 - SC - Indian Laws

Supreme Court allows quashing criminal proceedings when parties resolve disputes in commercial, financial, matrimonial matters under Section 482 CrPC.

TARINA SEN Versus UNION OF INDIA & ANR.

The SC allowed the appeal for quashing criminal proceedings under Section 482 CrPC. The court held that in matters involving commercial, financial, ... Prayer for quashing of the criminal proceedings - Section 482 of the Code of Criminal Procedure, 1973 - whether the continuation of the criminal proceedings against the present appellants would be justified or not? - HELD THAT:- In the matters arising out of commercial, financial, mercantile, civil, partnership or such like transactions or the offences arising out of matrimony relating to dowry, etc. or family disputes where the wrong is basically private or personal in nature and the parties have resolved their entire dispute, the High Court should exercise its powers under Section 482 CrPC for giving an end to the criminal proceedings. It is held that the possibility of conviction in such cases is remote and bleak and as such, the continuation of the criminal proceedings would put the accused to great oppression and prejudice. Appeal allowed. Issues:Challenge to final orders of High Court in quashing criminal proceedings under Section 482 of CrPC, 1973 - Allegations of criminal conspiracy, loan fraud, and corruption - Settlement between borrowers and Bank - Justifiability of continuation of criminal proceedings against accused - Applicability of legal principles in quashing criminal proceedings.Detailed Analysis:1. Criminal Proceedings and Allegations:The Supreme Court considered the challenge to the final orders of the High Court quashing criminal proceedings under Section 482 of the CrPC, 1973. The case involved allegations of criminal conspiracy, loan fraud, and corruption against the accused persons, including the present appellants, under various sections of the IPC and the Prevention of Corruption Act. The accused were alleged to have engaged in fraudulent activities related to loan applications and funds misappropriation.2. Settlement and Discharge of Debt:The appellants had reached a settlement with the Bank in the Debt Recovery Tribunal proceedings, resulting in the discharge of the entire debt on 31st January 2011. An amount was deposited as a full settlement of the Bank's dues. The settlement between the borrowers and the Bank was a crucial aspect of the case, leading to the question of the justifiability of continuing the criminal proceedings against the accused.3. Legal Submissions and Judgments:The legal representatives of the parties presented their arguments before the Court. The appellants' counsel argued that the accused had no active role in the alleged offenses and that the continuation of proceedings would be futile post the settlement. The counsel relied on various judgments of the Supreme Court to support their contentions. However, the ASG representing the CBI contended that the settlement between the Bank and the borrowers did not absolve the accused of their criminal liability.4. Judicial Consideration and Decision:The Supreme Court, after considering the facts and legal submissions, emphasized that the matter had been compromised between the borrowers and the Bank, resulting in the closure of the loan account. The Court, in line with its previous judgments, held that in cases where disputes have been resolved privately, especially in commercial or financial matters, the continuation of criminal proceedings would be unjustifiable. The Court noted the remote possibility of conviction and the potential oppression faced by the accused in such situations.5. Judgment and Order:Ultimately, the Supreme Court allowed the appeals, setting aside the High Court's orders and quashing the criminal proceedings against the appellants in the trial court. The Court's decision was based on the principles of settlement, lack of active involvement of the accused, and the remote likelihood of conviction. The judgment highlighted the importance of considering private settlements and resolving disputes to prevent unnecessary oppression and prejudice to the accused.This detailed analysis encapsulates the key aspects of the legal judgment, including the factual background, legal arguments, judicial considerations, and the final decision of the Supreme Court in quashing the criminal proceedings against the accused appellants.