In Brief
The appellant challenged a High Court order refusing to quash criminal proceedings under Section 420 IPC (cheating) arising from a dishonoured cheque. The Supreme Court found that the parties had amicably settled their dispute by payment of ₹3,50,000. The Court held that in cases essentially arising under Section 138 of the Negotiable Instruments Act, when parties settle and the complainant is compensated, criminal proceedings may be quashed in the interest of justice. The Court disposed of the appeal, quashing the complaint and noting that related proceedings could be similarly addressed when appropriately brought to notice.
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