In Brief
Rom Industries Ltd. defrauded State Bank of Patiala by obtaining higher credit limits using forged and false stock statements, causing claimed losses of Rs.38.08 crores. After a One Time Settlement with the bank involving partial repayment, the company sought to quash criminal proceedings for fraud and forgery—non-compoundable offences. The High Court allowed the petition. The Supreme Court held that while acknowledging the value of compromise, the doctrine of judicial restraint and separation of powers ordinarily prevent the High Court from quashing serious economic crime proceedings based solely on settlement. Such action would improperly encroach on executive/prosecutorial authority. The Court dismissed the CBI's appeal, but left the broader question open for future cases.
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