Can Criminal Proceedings for Cheating and Breach of Trust be Quashed Under Section 528 BNS Based on Compromise Between Parties?

Quashing permitted under Section 528 of Bharatiya Nagarik Suraksha Sanhita, 2023, when parties have settled voluntarily and without coercion, even for offences under Sections 420, 406 IPC and 24 of the Immigration Act. The High Court applies and upholds Full Bench and Supreme Court precedents, reaffirming binding authority for similar future cases involving private/commercial disputes.

 

Summary

Category Data
Case Name CRM-M/44030/2025 of AMIT KUMAR @ BITTU Vs STATE OF HARYANA AND ANOTHER
CNR PHHC011273222025
Date of Registration 11-08-2025
Decision Date 28-10-2025
Disposal Nature ALLOWED
Judgment Author MR. JUSTICE YASHVIR SINGH RATHOR
Court High Court of Punjab and Haryana
Bench Single Judge Bench (MR. JUSTICE YASHVIR SINGH RATHOR)
Precedent Value Binding authority for subordinate courts under the High Court; persuasive for other High Courts and the Supreme Court
Overrules / Affirms Affirms the Full Bench judgment in 2007 (3) RCR (Criminal) 1052 (‘Kulwinder Singh’) and Supreme Court’s decision in (2012) 10 SCC 303 (‘Gian Singh’)
Type of Law Criminal Law, Procedural Law under Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023; Offences under IPC and Immigration Law
Questions of Law Whether quashing of criminal proceedings under Section 528 BNS is permissible in cases of private settlement for offences under Sections 420, 406 IPC, and Section 24 of Immigration Act.
Ratio Decidendi The Court observed that when parties have voluntarily compromised, continuing criminal proceedings serves no useful purpose for commercial/individual disputes. Relying on authoritative precedents, it held that inherent powers can be exercised to quash FIRs under Section 528 BNS if the compromise is genuine, voluntary, and without coercion, even for specific offences not strictly compoundable. The Court further noted that the State and complainant do not oppose the compromise, supporting quashing. The judgment affirms that the principles laid down previously continue to apply under the BNSS, 2023, for identical offences and circumstances.
Judgments Relied Upon 2007 (3) RCR (Criminal) 1052 (‘Kulwinder Singh and others v. State of Punjab and another’) Full Bench; (2012) 10 SCC 303 (‘Gian Singh v. State of Punjab and others’) Supreme Court
Logic / Jurisprudence / Authorities Relied Upon by the Court The logic is that where the dispute is personal/commercial, a voluntary settlement, untainted by coercion or undue influence, justifies quashing to prevent abuse of process and furthering the cause of justice. Court relies on authoritative precedents.
Facts as Summarised by the Court FIR No.543 dated 18.07.2025 was registered at Police Station Karnal Sadar under Sections 420, 406 IPC and Section 24 of Immigration Act. Parties appeared before the Magistrate and recorded voluntary, non-coerced compromise statements. State and complainant did not object to quashing.

Practical Impact

Category Impact
Binding On All subordinate courts in Punjab and Haryana under the High Court’s jurisdiction
Persuasive For Other High Courts, Supreme Court of India
Follows ‘Kulwinder Singh and others v. State of Punjab and another’ (2007 (3) RCR (Criminal) 1052); ‘Gian Singh v. State of Punjab and others’ (2012) 10 SCC 303

What’s New / What Lawyers Should Note

  • Reaffirms that compromise between parties (voluntary, without coercion) suffices for quashing under Section 528 BNSS, even for offences under Sections 420, 406 IPC and Section 24 of Immigration Act.
  • The Court explicitly applies the new procedural code (BNSS, 2023), confirming continuity of principles from earlier Code of Criminal Procedure rulings.
  • Lawyers can cite this judgment to support applications for quashing on compromise where both complainant and State do not object, especially in commercial/personal disputes.
  • The requirement of a judicially verified, voluntary compromise (via trial court/Magistrate) remains essential for quashing.
  • Strengthens existing precedent’s application to proceedings under BNSS, 2023.

Summary of Legal Reasoning

  • The Court identified that the only outstanding issue was whether criminal proceedings should continue when the parties have reached a compromise, in a case registered under Sections 420, 406 IPC and Section 24, Immigration Act.
  • The Court had directed the parties to record their statements before the Magistrate to verify the genuineness and voluntariness of the settlement.
  • After receiving an unambiguous report from the Magistrate confirming that the compromise was voluntary and without coercion, the Court considered the precedential position.
  • Reliance was placed on the Full Bench decision in ‘Kulwinder Singh’ (2007 (3) RCR (Criminal) 1052) and the Supreme Court in ‘Gian Singh’ (2012) 10 SCC 303, which permit courts to exercise inherent powers for quashing in private disputes where compromise is genuine.
  • The Court applied this established position to the procedural scenario under Section 528 of the BNSS, 2023, stating no useful purpose would be served by continuing proceedings when all parties have resolved their dispute.
  • Noted specifically that neither the State nor the complainant objected to the quashing.

Arguments by the Parties

Petitioner

  • Sought quashing of FIR and proceedings based on a compromise reached with the complainant.
  • Asserted that the compromise was voluntary and without any undue influence or coercion.

Respondent No.2 (Complainant)

  • Did not dispute the compromise.
  • Appeared before Magistrate and confirmed voluntariness and absence of coercion.

State (Respondent State Counsel)

  • Did not dispute the factum or validity of the compromise.

Factual Background

The case concerned FIR No.543 dated 18.07.2025, registered at Police Station Karnal Sadar under Sections 420 and 406 of the Indian Penal Code and Section 24 of the Immigration Act. During the proceedings, the petitioner and the complainant reached a compromise. Pursuant to the Court’s direction, both parties appeared before the Additional Chief Judicial Magistrate, Karnal, and recorded their statements. The Magistrate reported the compromise as genuine and voluntary. Thereafter, both the State and the complainant raised no objection to the quashing of the proceedings.

Statutory Analysis

  • The Court considered Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), which parallels Section 482 of the CrPC regarding inherent powers to quash proceedings.
  • No specific statutory bar was identified; rather, the Court read in existing Supreme Court and Full Bench precedent on the scope of such inherent powers to the new procedural code context (BNSS, 2023).
  • The offences at issue (Sections 420, 406 IPC; Section 24 Immigration Act) are not inherently compoundable, but may be quashed if a genuine compromise is established, as per the cited authorities.

Dissenting / Concurring Opinion Summary

No dissenting or concurring opinions noted in the judgment.

Procedural Innovations

  • The judgment involved directing parties to appear before a Judicial Magistrate for voluntary compromise verification, reaffirming procedural safeguards before quashing — consistent with but not new relative to previous practice.

Alert Indicators

  • ✔ Precedent Followed – Reaffirms established law regarding quashing of proceedings on compromise, specifically applying Full Bench and Supreme Court precedent to the BNSS, 2023 context.

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