In Brief
The Central Bureau of Investigation challenged orders discharging 13 accused persons in a criminal case involving alleged cheating, forgery, and criminal conspiracy. The accused had purportedly defrauded Bank of Baroda of crores of rupees through forged documents and fictitious companies. The trial court had discharged them chiefly relying on a One Time Settlement reached between the bank and the company. The Supreme Court held that civil settlement extinguishes only civil liability, not criminal liability for serious offences. It set aside the discharge, finding overwhelming material supporting allegations of financial fraud through manipulated credit facilities and forged documents. Such conduct constitutes a social wrong affecting collective interest, not merely a private civil dispute, and cannot be quashed. The Court directed the trial court to frame charges and conclude trial within one year.
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