In Brief
A Supreme Court bench quashed an FIR alleging cheating and criminal breach of trust, finding the dispute was fundamentally civil in nature. The High Court had directed the appellant to pay ₹25 lakh to the complainant as a precondition for mediation. The Court held that a High Court cannot condition quashing of an FIR on monetary payment or attempt to facilitate settlement in criminal cases. It emphasized that money disputes must be resolved through civil suits or appropriate forums, not criminal prosecution, as using criminal law to recover money constitutes abuse of process. The Court clarified that cheating requires proof of criminal intent from inception, not merely non-performance of a commercial agreement.
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