SC quashed criminal proceedings initiated by CBI against...

SC quashed criminal proceedings initiated by CBI against appellants involving allegations of forgery and cheating. The Court determined the dispute was predominantly civil in nature, with the bank having no grievance and the entire amount already settled. Applying principles from prior precedent, the Court found the criminal case lacked substantive merit, and continuation would cause significant prejudice to the appellants. The timing of settlement prior to chargesheet filing was crucial in the Court's decision. The inherent powers under Section 482 CrPC were invoked to terminate the criminal proceedings, recognizing the overwhelming commercial character of the underlying transaction. The impugned High Court order was set aside, and the appeal was allowed.

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