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Informative

“Delhi High Court Quashes FIR in Economic Offences Case Following Amicable Settlement Between Parties”

Update / Judgement Date

13 Oct 2025

Source

WCP News Bulletin

Author

Sakshi Bhardwaj — WCP Legal Desk

Reading Time

2 min read

Criminal LawOther Legal Matters
“Delhi High Court Quashes FIR in Economic Offences Case Following Amicable Settlement Between Parties”
WCP News Bulletin

Headnote:

The Delhi High Court quashed FIR No. 14/2023 registered at the PS Economic Offences Wing under Sections 406, 420, and 120B IPC against Vishal Yadav & Anr., in view of an amicable settlement between the parties. The Court observed that continuation of criminal proceedings after resolution of dispute would amount to abuse of process of law and is not in the interest of justice. Parties were directed to deposit a cost of Rs. 20,000/- each with Delhi High Court Advocates Welfare Trust.


Background:

  1. Petition filed under Article 226 of the Constitution read with Section 528 Cr.P.C., seeking quashing of FIR No. 14/2023 and all proceedings arising therefrom.
  2. FIR registered on 15.02.2023 at PS Economic Offences Wing alleging that petitioners induced respondent no. 2’s company to export PVC resin worth USD 1,153,831.25 to Essential Tradexpo Pvt. Ltd. on a 60-day credit term but failed to make payment.


Settlement:

  1. Parties amicably settled the matter and executed a Settlement Agreement dated 30.10.2023.
  2. Petitioners paid total settlement amount of Rs. 51,80,231/- (USD 62,225/-) to respondent no. 2 as per schedule.
  3. Respondent no. 2 confirmed settlement voluntarily and expressed no objection to quashing the FIR.
  4. Learned Additional Public Prosecutor for the State also had no objection.


Legal Principles:

  1. Citing Gian Singh v. State of Punjab (2012) 10 SCC 303: High Court can quash criminal proceedings if continuation would be unfair, abuse of process, or contrary to interest of justice.
  2. B.S. Joshi v. State of Haryana (2003) 4 SCC 675: High Court can exercise powers under Section 482 Cr.P.C. to quash non-compoundable offences in appropriate cases.


Decision:

  1. FIR No. 14/2023 and all consequential proceedings quashed.
  2. Petitioners directed to deposit a cost of Rs. 20,000/- each with Delhi High Court Advocates Welfare Trust within one month.
  3. Petition allowed and disposed of accordingly. Pending applications, if any, also disposed of.


Coram:

Hon’ble Mr. Justice Ravinder Dudeja

Citation: W.P.(CRL) 335/2024