In Brief
Two women accused (wives of the principal borrower) in a fraud case involving forged loan documents challenged the quashing dismissal by the High Court. The Supreme Court allowed their appeal, holding that criminal proceedings involving non-compoundable offences (conspiracy, cheating, forgery, criminal breach of trust) can be quashed where the underlying dispute is predominantly civil in character, the parties have comprehensively settled, and conviction possibility is remote. Here, the Bank and borrowers had fully resolved the loan dispute through a One-Time Settlement arrangement, with the Bank closing the account after payment. The Court found that continuing proceedings would cause oppression and defeat justice, particularly as the appellants had no active role beyond conspiracy allegations.
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