K. BHARTHI DEVI AND ANR. versus STATE OF TELANGANA AND ANR.

K. BHARTHI DEVI AND ANR. versus STATE OF TELANGANA AND ANR.

The Supreme Court held that the dispute predominantly bore the character of a civil dispute arising out of loan transactions which had been amicably settled by payment including an OTS and the loan account was closed; given the settlement recorded by the DRT and the payments made, the possibility of conviction was remote and bleak and continuation of criminal proceedings would cause oppression and prejudice; therefore the High Court ought to have exercised its jurisdiction under Section 482 CrPC to quash the criminal proceedings and the appeal is allowed.

Parties
Appellant: K. Bharthi Devi; Appellant: Anr.; Respondent: State of Telangana; Respondent: Central Bureau of Investigation (CBI); Respondent: Indian Bank, Osmanganj Branch, Hyderabad
Jurisdiction
India
Judgment Date
03 October 2024
Procedural Posture
Criminal Appeal / Appeal to Supreme Court
Outcome
Appeal allowed
Legal Topics
Quashing, Settlement/compromise, Section 482 Cr PC, One Time Settlement, Debts Recovery Tribunal
Criminal Procedure Criminal Law Banking Law Quashing Settlement/compromise Section 482 Cr PC One Time Settlement Debts Recovery Tribunal

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Parties

K. Bharthi Devi

Appellant

Anr.

Appellant

State of Telangana

Respondent

Central Bureau of Investigation (CBI)

Respondent

Indian Bank, Osmanganj Branch, Hyderabad

Respondent

Procedural Posture

Criminal Appeal / Appeal to Supreme Court

Legal Issues

  1. 1 Whether criminal proceedings under Section 482 CrPC should be quashed where the dispute predominantly has a civil character and the parties have settled the dispute
  2. 2 Whether settlement by way of One Time Settlement/compromise between borrower and bank and closure of loan account renders continuation of criminal prosecution under IPC and Prevention of Corruption Act oppressive and an abuse of process

Ratio Decidendi

The Supreme Court held that the dispute predominantly bore the character of a civil dispute arising out of loan transactions which had been amicably settled by payment including an OTS and the loan account was closed; given the settlement recorded by the DRT and the payments made, the possibility of conviction was remote and bleak and continuation of criminal proceedings would cause oppression and prejudice; therefore the High Court ought to have exercised its jurisdiction under Section 482 CrPC to quash the criminal proceedings and the appeal is allowed.

Court Disposition

Appeal allowed

Orders

  • The appeal is allowed.
  • The impugned judgment and order dated 1st September 2017 passed by the High Court in Criminal Petition No. 5778 of 2016 is quashed and set aside.