M/S Omaxe LTD vs. State Of Nct Of Delhi
Held
The Court held that since the matter has been amicably settled between the petitioner and respondent Nos. 2 and 3, no useful purpose would be served by keeping the case pending. The Court found that continuing the proceedings would amount to an abuse of the process of law. Therefore, the petition was allowed. The FIR No. 98/2021, registered at Police Station Kalkaji, Delhi, under Sections 420/406 IPC, and all proceedings emanating therefrom, were quashed. The Court's reasoning was based on the voluntary settlement reached by the parties, rendering further adjudication unnecessary and counterproductive. The ratio decidendi is that criminal proceedings arising from civil disputes can be quashed if the parties have amicably settled their differences, preventing the misuse of the legal process.
Facts
The petitioner, M/s Omaxe Ltd., launched a housing project in 2018. Respondent Nos. 2 and 3 applied for a flat and an Agreement for Sale was executed for Rs. 52,01,269/-. Respondents paid Rs. 20,53,571.44/- towards the sale consideration and Rs. 2,46,428.56/- towards application GST. As respondents failed to make further payments as per the agreement, the petitioner cancelled the allotment on June 4, 2019. Aggrieved, respondents filed a complaint leading to the registration of FIR No. 98/2021 under Sections 420/406 IPC. The petitioner filed a petition under Articles 226/227 of the Constitution and Section 482 Cr.P.C. to quash the FIR and subsequent proceedings.
Key Issues
1. Whether the FIR registered under Sections 420/406 IPC against the petitioner company for alleged cheating and criminal breach of trust, arising from a dispute over a housing project allotment and payment defaults, is liable to be quashed on the grounds of amicable settlement between the parties? Petitioner's contention: The petitioner argued that the parties have amicably settled their disputes, as evidenced by a Settlement dated July 13, 2021. They submitted that continuing the FIR would be an abuse of the process of law. Respondent's contention: Respondent Nos. 2 and 3, present in court, confirmed the voluntary settlement without any force or pressure and stated they have no objection to the FIR being quashed. The State also submitted that it has no objection to the quashing of the FIR in view of the settlement.
Sections Cited
Section 420, Section 406, Section 482 Cr.P.C., Article 226, Article 227
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Cause title — parties, addresses and appearances
O R D E R %
2022
This is a petition under Articles 226/227 of the Constitution of India read with Section 482 Cr.P.C. for quashing of FIR No.98/2021, under Section 420/406 IPC, registered at Police Station Kalkaji, Delhi, and all proceedings emanating therefrom.
The brief facts of the case are that in 2018 petitioner-company launched a ground housing project known as ‘Omaxe Shubhangan Bahadurgarh’ in the village Kasar in Tehsil Bahadurgarh, District Jhajjar, Haryana. On 21.6.2018, respondent nos. 2 and 3 applied for allotment of a flat in ‘Omaxe Shubhangan Bahadurgarh’. On 17.11.2018, petitioner allotted Flat No.701, 7th Floor, Tower No.1 0, Shubhangan (3-4 BHK) admeasuring approx. 2215 sq. ft. in ‘Omaxe Shubhangan Bahadurgarh’
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