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Issues: Whether the FIR registered under Section 174-A of the Indian Penal Code, 1860 and the consequential proceedings were liable to be quashed after the underlying complaint under Section 138 of the Negotiable Instrument Act, 1881 had been compromised and withdrawn.
Analysis: The underlying complaint arose from a private dispute under Section 138 of the Negotiable Instrument Act, 1881. The parties entered into a settlement, and the complaint was dismissed as withdrawn. The Court noted the later pronouncement of the Supreme Court that proceedings under Section 174-A of the Indian Penal Code, 1860 are independent and can, in principle, continue even if the proclamation ceases to operate. At the same time, the Court treated the compromise and withdrawal of the foundational complaint as a relevant circumstance while considering whether continuation of the FIR and connected proceedings would serve any useful purpose. Exercising inherent powers under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 and Section 482 of the Code of Criminal Procedure, 1973, the Court found that insistence on continuation would amount to abuse of process and would not advance the ends of justice.
Conclusion: The FIR under Section 174-A of the Indian Penal Code, 1860 and all consequential proceedings were quashed, in favour of the petitioner.
Ratio Decidendi: Even though an offence under Section 174-A of the Indian Penal Code, 1860 is independent, the High Court may quash the resultant proceedings in exercise of inherent jurisdiction where the foundational complaint has been amicably settled and withdrawn and continuation would amount to abuse of process and defeat the ends of justice.