In Brief
The CBI appealed the High Court's decision to quash criminal fraud proceedings against directors of two companies. The defendants had allegedly defrauded a bank of Rs. 15 crores. However, the parties subsequently settled the civil dispute through a debt recovery tribunal, with the companies fully repaying all outstanding amounts to the bank. The Supreme Court upheld the High Court's quashing order, holding that when all financial obligations have been satisfied and no issue of criminality survives, continuing criminal prosecution would constitute an abuse of process. The appeals were dismissed.
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