In Brief
Directors and employees of a company that obtained a large bank loan later settled the debt through a one-time settlement before a Debt Recovery Tribunal. The bank subsequently filed a criminal complaint alleging fraud, cheating, and diversion of funds. The appellants sought to quash the criminal proceedings, arguing settlement should end the case. The Supreme Court upheld the High Court's refusal to quash, holding that economic offences and offences under the Prevention of Corruption Act cannot be quashed by private settlement. Such offences affect public interest and institutional credibility, extending beyond private disputes. Financial settlement does not extinguish criminal liability for breach of trust and fraud.
The lawyer headnote and full judgment text are available to registered users.