In Brief
The appellants were accused of orchestrating fraudulent diversion of bank funds through conspiracy, forgery and misappropriation. Criminal proceedings were initiated against them under the IPC and Prevention of Corruption Act. The underlying commercial dispute was later fully settled through a One Time Settlement scheme with the bank receiving complete repayment and issuing No Dues Certificates. The High Court refused to quash the proceedings citing an advanced stage of trial and existence of prima facie case. The Supreme Court allowed the appeal and quashed all criminal proceedings, holding that when a dispute is fully settled with no continuing public interest and co-accused have received identical relief, criminal proceedings should not continue as they serve no meaningful purpose.
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