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Monday, September 24, 2012

the power of the High Court in quashing a criminal proceeding or FIR or complaint in exercise of its inherent jurisdiction is distinct and different from the power given to a criminal court for compounding the offences under Section 320 of the Code. Inherent power is of wide plenitude with no statutory limitation but it has to be exercised in accord with the guideline engrafted in such power viz; (i) to secure the ends of justice or (ii) to prevent abuse of the process of any Court. In what cases power to quash the criminal proceeding or complaint or F.I.R may be exercised where the offender and victim have settled their dispute would depend on the facts and circumstances of each case and no category can be prescribed. However, before exercise of such power, the High Court must have due regard to the nature and gravity of the crime. Heinous and serious offences of mental depravity or offences like murder, rape, dacoity, etc. cannot be fittingly quashed even though the victim or victim’s family and the offender have settled the dispute. Such offences are not private in nature and have serious impact on society. Similarly, any compromise between the victim and offender in relation to the offences under special statutes like Prevention of Corruption Act or the offences committed by public servants while working in that capacity etc; cannot provide for any basis for quashing criminal proceedings involving such offences. But the criminal cases having overwhelmingly and pre-dominatingly civil flavour stand on different footing for the purposes of quashing, particularly the offences arising from commercial, financial, mercantile, civil, partnership or such like transactions or the offences arising out of matrimony relating to dowry, etc. or the family disputes where the wrong is basically private or personal in nature and the parties have resolved their entire dispute. In this category of cases, High Court may quash criminal proceedings if in its view, because of the compromise between the offender and victim, the possibility of conviction is remote and bleak and continuation of criminal case would put accused to great oppression and prejudice and extreme injustice would be caused to him by not quashing the criminal case despite full and complete settlement and compromise with the victim. In other words, the High Court must consider whether it would be unfair or contrary to the interest of justice to continue with the criminal proceeding or continuation of the criminal proceeding would tantamount to abuse of process of law despite settlement and compromise between the victim and wrongdoer and whether to secure the ends of justice, it is appropriate that criminal case is put to an end and if the answer to the above question(s) is in affirmative, the High Court shall be well within its jurisdiction to quash the criminal proceeding. 58. In view of the above, it cannot be said that B.S. Joshi1, Nikhil Merchant2 and Manoj Sharma3 were not correctly decided. We answer the reference accordingly. Let these matters be now listed before the


                                                                  REPORTABLE


                        IN THE SUPREME COURT OF INDIA

                       CRIMINAL APPELLATE JURISDICTION

               SPECIAL LEAVE PETITION (CRL.) NO. 8989 OF 2010

Gian Singh                                              …Petitioner

                       Versus

State of Punjab & Another                                   …Respondents

                                    WITH

               SPECIAL LEAVE PETITION (CRL.) NO. 6138 OF 2006

               SPECIAL LEAVE PETITION (CRL.) NO. 5203 OF 2011

                SPECIAL LEAVE PETITION (CRL.) NO. 259 OF 2011

               SPECIAL LEAVE PETITION (CRL.) NO. 5921 OF 2009

               SPECIAL LEAVE PETITION (CRL.) NO. 7148 OF 2009

               SPECIAL LEAVE PETITION (CRL.) NO. 6324 OF 2009

                   CRIMINAL APPEAL NOS. 2107-2125 OF 2011


                                  JUDGEMENT
R.M. LODHA, J.


            When the special leave petition  in   Gian  Singh  v.  State  of
Punjab and another came up for hearing, a two-Judge Bench  (Markandey  Katju
and Gyan Sudha Misra, JJ.) doubted the correctness of the decisions of  this
Court in B.S. Joshi and others v. State of Haryana  and  another[1],  Nikhil
Merchant v. Central Bureau of Investigation and another[2] and Manoj  Sharma
v. State and others[3] and referred the  matter   to  a  larger  Bench.  The
reference order reads as follows :
           “Heard learned counsel for the petitioner.


                 The petitioner has been convicted under  Section  420  and
           Section 120B, IPC by the learned Magistrate. He filed an  appeal
           challenging his conviction before the  learned  Sessions  Judge.
           While his appeal was pending, he filed an application before the
           learned Sessions  Judge  for  compounding  the  offence,  which,
           according to the learned counsel, was directed to  be  taken  up
           along with the main appeal. Thereafter, the petitioner  filed  a
           petition under Section 482, Cr.P.C. for quashing of the  FIR  on
           the ground of  compounding  the  offence.  That  petition  under
           Section 482 Cr.P.C. has been dismissed by the High Court by  its
           impugned order. Hence, this petition  has  been  filed  in  this
           Court.


                 Learned counsel for the petitioner  has  relied  on  three
           decisions of this Court, all by two Judge Benches. They are B.S.
           Joshi vs. State of Haryana (2003) 4 SCC 675; Nikhil Merchant vs.
           Central Bureau of Investigation and Another (2008)  9  SCC  677;
           and Manoj Sharma vs. State and Others (2008) 16 SCC 1. In  these
           decisions, this Court has indirectly  permitted  compounding  of
           non-compoundable  offences.  One  of  us,  Hon’ble  Mr.  Justice
           Markandey Katju, was a member to the last two decisions.


                  Section  320,  Cr.P.C.  mentions  certain   offences   as
           compoundable, certain other offences as  compoundable  with  the
           permission  of  the  Court,  and  the  other  offences  as  non-
           compoundable vide Section 320(7).


                  Section  420,  IPC,  one  of  the  counts  on  which  the
           petitioner has been  convicted,  no  doubt,  is  a  compoundable
           offence with permission of the Court in  view  of  Section  320,
           Cr.P.C. but Section 120B IPC,  the  other  count  on  which  the
           petitioner has been convicted, is  a  non-compoundable  offence.
           Section 120B (Criminal conspiracy) is  a  separate  offence  and
           since it is a non-compoundable offence, we cannot permit  it  to
           be compounded.


                 The Court cannot  amend  the  statute  and  must  maintain
           judicial restraint in this connection. The Courts should not try
           to take over the function of the Parliament or executive. It  is
           the legislature alone which can amend Section 320 Cr.P.C.


                 We are of the  opinion  that  the  above  three  decisions
           require to be re-considered as, in our opinion, something  which
           cannot be done directly cannot be done indirectly. In our, prima
           facie, opinion, non-compoundable offences cannot be permitted to
           be compounded by the  Court,  whether  directly  or  indirectly.
           Hence, the above three decisions do  not  appear  to  us  to  be
           correctly decided.


                 It is true that in the last  two  decisions,  one  of  us,
           Hon’ble Mr. Justice Markandey Katju, was a member  but  a  Judge
           should always be open to correct  his  mistakes.  We  feel  that
           these decisions require re-consideration  and  hence  we  direct
           that this matter be placed before a larger Bench  to  reconsider
           the correctness of the aforesaid three decisions.


                 Let the papers of this case be placed before Hon’ble Chief
           Justice of India for constituting a larger Bench.”



2.          This is how these matters have come up for consideration  before
us.
3.          Two provisions of the Code  of  Criminal  Procedure,  1973  (for
short, ‘Code’) which are vital for consideration of the  issue  referred  to
the larger Bench are Sections 320 and 482. Section 320 of the Code  provides
for compounding of certain offences punishable under the Indian Penal  Code,
1860 (for short, ‘IPC’). It reads as follows :

           “S. 320. Compounding of offences.—(1)  The  offences  punishable
           under the sections of  the  Indian  Penal  Code,  (45  of  1860)
           specified in the first two columns of the Table  next  following
           may be compounded by the persons mentioned in the  third  column
           of that Table :


                                    TABLE
|Offenc|Section of    |Person by whom offence |
|e     |the Indian    |may be compounded      |
|      |Penal Code    |                       |
|      |applicable    |                       |
|1     |2             |3                      |




           (2)   The offences punishable under the sections of  the  Indian
           Penal Code (45 of 1860) specified in the first  two  columns  of
           the table next following may, with the permission of  the  Court
           before which any prosecution for such  offence  is  pending,  be
           compounded by the persons mentioned in the third column of  that
           Table:--


                                    TABLE
|Offen|Section of       |Person by whom       |
|ce   |the Indian       |offence may be       |
|     |Penal Code       |compounded           |
|     |applicable       |                     |
|1    |2                |3                    |




           (3)   When an offence is compoundable under  this  section,  the
           abatement of such offence or an attempt to commit  such  offence
           (when such attempt is itself an offence) or where the accused is
           liable under section 34 or  149 of the Indian Penal Code (45  of
           1860)  may be compounded in like manner.


           (4)        (a)     When  the  person  who  would  otherwise   be
                       competent to compound an offence under  this  section
                       is under the age of eighteen years or is an idiot  or
                       a lunatic, any person competent to  contract  on  his
                       behalf,  may,  with  the  permission  of  the  Court,
                       compound such offence.


                 (b)   When the person who would otherwise be  competent  to
                       compound an offence under this section is  dead,  the
                       legal representative, as defined in the Code of Civil
                       Procedure, 1908  of such person may, with the consent
                       of the Court, compound such offence.




           (5)   When the accused has been committed for trial or  when  he
           has been convicted  and an appeal is pending, no composition for
           the offence shall be allowed without the leave of the  Court  to
           which he is committed, or, as the case may be, before which  the
           appeal is to be heard.


           (6)   A High Court or Court of Session acting in the exercise of
           its powers of revision under section 401 may allow any person to
           compound any offence which such person is competent to  compound
           under this section.


           (7)   No offence shall be  compounded  if  the  accused  is,  by
           reason of a  previous  conviction,  liable  either  to  enhanced
           punishment or to a punishment  of  a  different  kind  for  such
           offence.


           (8)   The composition of an offence  under  this  section  shall
           have the effect of an acquittal of the  accused  with  whom  the
           offence has been compounded.


           (9)   No offence shall be compounded except as provided by  this
           section.”


4.          Section 482 saves the inherent power of the High  Court  and  it
reads as follows :
           “S. 482.  Saving of inherent power  of  High  Court.—Nothing  in
           this Code shall be deemed to limit or affect the inherent powers
           of the High Court to make such orders as  may  be  necessary  to
           give effect to any order under this Code, or to prevent abuse of
           the process of any Court or otherwise  to  secure  the  ends  of
           justice.”

5.          In B.S. Joshi1 , the undisputed facts were these :  the  husband
was one of the appellants while the wife was respondent no. 2 in the  appeal
before  this  Court.  They  were  married  on  21.7.1999  and  were   living
separately  since  15.7.2000.  An  FIR   was   registered   under   Sections
498-A/323 and 406, IPC at the instance of the wife  on  2.1.2002.  When  the
criminal case registered at the  instance  of  the  wife  was  pending,  the
dispute between the husband and wife and their family members was   settled.
It appears that the wife filed an  affidavit  that  her  disputes  with  the
husband and the other members of his family had  been  finally  settled  and
she and her husband had  agreed  for  mutual  divorce.  Based  on  the  said
affidavit, the matter was taken to the High Court by both  the  parties  and
they jointly prayed for quashing the criminal proceedings  launched  against
the husband and his family members on the basis of  the  FIR  registered  at
the wife’s instance under  Sections  498-A  and  406  IPC.  The  High  Court
dismissed the petition for quashing the FIR as  in  its  view  the  offences
under Sections 498-A and 406, IPC were  non-compoundable  and  the  inherent
powers under Section 482 of  the  Code  could  not  be  invoked  to  by-pass
Section 320 of the Code. It is from this order that the matter reached  this
Court. This Court held that the High  Court  in  exercise  of  its  inherent
powers could quash criminal proceedings or FIR or complaint and Section  320
of the Code did not limit or affect the powers  under  Section  482  of  the
Code. The Court in paragraphs 14 and 15 (Pg. 682)  of  the  Report  held  as
under :
           “14. There is no doubt that the object of introducing Chapter XX-
           A containing Section 498-A in  the  Indian  Penal  Code  was  to
           prevent torture to a woman by her husband or by relatives of her
           husband. Section 498-A was added with  a  view  to  punishing  a
           husband and his relatives who harass  or  torture  the  wife  to
           coerce her or her  relatives  to  satisfy  unlawful  demands  of
           dowry. The hypertechnical view would  be  counterproductive  and
           would act against interests of women and against the object  for
           which this provision was added. There is every  likelihood  that
           non-exercise of inherent power to quash the proceedings to  meet
           the ends of justice would prevent women from  settling  earlier.
           That is not the object of Chapter XX-A of the Indian Penal Code.


           15. In view of the above discussion, we hold that the High Court
           in  exercise  of  its  inherent  powers   can   quash   criminal
           proceedings or FIR or complaint and Section 320 of the Code does
           not limit or affect the powers under Section 482 of the Code.”

6.          In Nikhil Merchant2, a company,  M/s.  Neemuch  Emballage  Ltd.,
Mumbai was  granted  financial  assistance  by  Andhra  Bank  under  various
facilities. On account of default in repayment of loans, the  bank  filed  a
suit for recovery of the amount payable by the borrower  company.  The  bank
also filed a complaint against the company, its Managing  Director  and  the
officials of Andhra Bank for diverse offences, namely,  Section  120-B  read
with Sections 420, 467, 468, 471 of the IPC  read  with  Sections  5(2)  and
5(1)(d) of the Prevention of Corruption Act, 1947  and  Section  13(2)  read
with Section 13(1)(d) of the Prevention of Corruption Act,  1988.  The  suit
for recovery filed  by  the  bank  against  the  company  and  the  Managing
Director of the Company was compromised. The suit was compromised  upon  the
defendants agreeing to pay the amounts due as per the schedule mentioned  in
the consent terms. Clause 11 of the consent terms read,  “agreed  that  save
as aforesaid neither party has any claim against the other  and  parties  do
hereby withdraw all the allegations  and  counter-allegations  made  against
each other”. Based on clause 11 of the consent terms, the Managing  Director
of the Company, the appellant who was accused no. 3 in  charge  sheet  filed
by CBI, made application for discharge  from  the  criminal  complaint.  The
said application was rejected by the Special Judge  (CBI),  Greater  Bombay,
which came to be challenged before the Bombay  High  Court.  The  contention
before the High Court was that since the subject matter of the  dispute  had
been settled between the appellant and the bank, it  would  be  unreasonable
to continue with the criminal  proceedings.  The  High  Court  rejected  the
application for discharge from the criminal cases. It  is  from  this  order
that the matter reached this Court  by  way  of  special  leave.  The  Court
having regard to the facts of the case and  the  earlier  decision  of  this
Court in B.S. Joshi1, set aside the order of the High Court and quashed  the
criminal proceedings by consideration of the matter thus:

           “28. The basic intention of the accused in this case appears  to
           have been to misrepresent the financial status of  the  Company,
           M/s Neemuch Emballage Ltd., Mumbai, in order  to  avail  of  the
           credit facilities to an extent to  which  the  Company  was  not
           entitled. In other words, the main intention of the Company  and
           its officers was to cheat the Bank and induce it  to  part  with
           additional amounts of  credit  to  which  the  Company  was  not
           otherwise entitled.


           29. Despite the  ingredients  and  the  factual  content  of  an
           offence of cheating punishable under Section 420 IPC,  the  same
           has been made compoundable under sub-section (2) of Section  320
           CrPC with the leave of the court. Of  course,  forgery  has  not
           been included as one of the compoundable offences, but it is  in
           such cases that the principle  enunciated  in  B.S.  Joshi  case
           becomes relevant.


           30. In the instant case, the disputes between  the  Company  and
           the Bank have been set at rest on the basis  of  the  compromise
           arrived at by them whereunder the dues of  the  Bank  have  been
           cleared and the Bank does not appear to have any  further  claim
           against the Company. What, however, remains  is  the  fact  that
           certain documents were alleged  to  have  been  created  by  the
           appellant herein in order to avail of credit  facilities  beyond
           the limit  to  which  the  Company  was  entitled.  The  dispute
           involved herein has overtones of a civil  dispute  with  certain
           criminal facets. The question which is required to  be  answered
           in this case is whether the power which independently lies  with
           this Court to quash the criminal  proceedings  pursuant  to  the
           compromise arrived at, should at all be exercised?


           31. On an overall view of the facts as indicated hereinabove and
           keeping in mind the decision of this Court in  B.S.  Joshi  case
           and the compromise arrived at between the Company and  the  Bank
           as also Clause 11 of the consent terms filed in the  suit  filed
           by the Bank, we are satisfied that this  is  a  fit  case  where
           technicality should not be allowed to stand in the  way  in  the
           quashing of the criminal proceedings, since, in  our  view,  the
           continuance of the same after the compromise arrived at  between
           the parties would be a futile exercise.”




7.          In Manoj Sharma3, the Court  was  concerned  with  the  question
whether an F.I.R. under Sections 420/468/471/34/120-B  IPC  can  be  quashed
either  under  Section  482  of  the  Code  or  under  Article  226  of  the
Constitution when the accused  and  the  complainant  have  compromised  and
settled the matter between themselves. Altamas Kabir, J., who delivered  the
lead judgment referred to B.S. Joshi1  and the submission made on behalf  of
the State that B.S. Joshi1 required a second look and held  that  the  Court
was not inclined to accept the contention made on behalf of the  State  that
the decision in B.S. Joshi1  required reconsideration, at least not  in  the
facts of the case. It was held that what was decided  in  B.S.  Joshi1   was
the power and authority of the High Court  to  exercise  jurisdiction  under
Section 482 of the Code or under Article 226 of the  Constitution  to  quash
offences which were not compoundable. The law stated in B.S. Joshi1   simply
indicated the powers of the High Court to quash any criminal  proceeding  or
first  information  report  or   complaint   whether   the   offences   were
compoundable or not. Altamas  Kabir,  J.  further  observed,  “The  ultimate
exercise of discretion under Section 482 CrPC or under Article  226  of  the
Constitution is with the court which has to exercise  such  jurisdiction  in
the facts of each case. It has been explained that the said power is  in  no
way limited by the  provisions  of  Section  320  CrPC.  We  are  unable  to
disagree with such statement of law. In any event,  in  this  case,  we  are
only  required  to  consider  whether  the  High  Court  had  exercised  its
jurisdiction under  Section  482  CrPC  legally  and  correctly.”   Then  in
paragraphs 8 and 9      (pg. 5) of the  Report,  Altamas  Kabir,  J.,  inter
alia, held as under :

           “8. …..Once the complainant decided not  to  pursue  the  matter
           further, the High Court could have taken a more  pragmatic  view
           of the matter. We do  not  suggest  that  while  exercising  its
           powers under Article 226 of  the  Constitution  the  High  Court
           could not have refused to quash the  first  information  report,
           but what we do say is that the matter could have been considered
           by the High Court with greater pragmatism in the  facts  of  the
           case.


           9.   ……In the facts of  this  case  we  are  of  the  view  that
           continuing with the criminal proceedings would be an exercise in
           futility………”


8.          Markandey Katju, J. although concurred with the view of  Altamas
Kabir, J. that criminal proceedings in that case deserved to be quashed  but
observed that question may have to be decided in  some  subsequent  decision
or decisions (preferably by a larger Bench)  as  to  which  non-compoundable
cases can be quashed under Section 482 of the Code or  Article  226  of  the
Constitution on the basis that the parties have entered into compromise.  In
paragraphs 27 and 28 (pg. 10) of the report he held as under:
           “27. There can be no doubt that a case under Section 302 IPC  or
           other serious offences like those under Sections 395, 307 or 304-
           B cannot be compounded and hence proceedings in those provisions
           cannot be quashed by the High Court in  exercise  of  its  power
           under Section 482 CrPC or in writ jurisdiction on the  basis  of
           compromise. However, in some other cases (like those akin  to  a
           civil nature), the proceedings can be quashed by the High  Court
           if the parties have come to an amicable settlement  even  though
           the provisions are not compoundable. Where a line is to be drawn
           will have to be decided in some later decisions of  this  Court,
           preferably  by  a  larger  Bench  (so  as  to   make   it   more
           authoritative). Some guidelines will have to be evolved in  this
           connection and the matter cannot be left at  the  sole  unguided
           discretion  of  Judges,  otherwise  there  may  be   conflicting
           decisions and judicial anarchy. A judicial discretion has to  be
           exercised on some objective guiding principles and criteria, and
           not on the whims and fancies of individual  Judges.  Discretion,
           after all, cannot be the Chancellor's foot.


           28. I am  expressing  this  opinion  because  Shri  B.B.  Singh,
           learned counsel for the respondent  has  rightly  expressed  his
           concern that the decision in  B.S.  Joshi  case  should  not  be
           understood to have meant that  Judges  can  quash  any  kind  of
           criminal case merely because there has been a compromise between
           the parties. After all, a crime is an offence  against  society,
           and not merely against a private individual.”

9.          Dr. Abhishek  Manu  Singhvi,  learned  senior  counsel  for  the
petitioner in SLP(Crl.) No. 6324 of 2009 submitted that the  inherent  power
of the High Court to quash a non-compoundable offence was not  circumscribed
by any of the provisions of the Code, including Section 320. Section 482  is
a declaration of the inherent power pre-existing in the High  Court  and  so
long as the exercise of the inherent power falls within  the  parameters  of
Section 482, it shall have an overriding effect over any of  the  provisions
of the Code. He, thus, submitted that in exercise  of  its  inherent  powers
under Section  482,  the  High  Court  may  permit  compounding  of  a  non-
compoundable offence provided that in doing so it satisfies  the  conditions
mentioned therein. Learned senior counsel would submit  that  the  power  to
quash the criminal proceedings under Section 482 of the Code exists even  in
non-compoundable offence but its actual exercise will depend on facts  of  a
particular case. He submitted that some or all of the  following  tests  may
be relevant to decide  whether  to  quash  or  not  to  quash  the  criminal
proceedings in a given case; (a) the nature and gravity of  case;  (b)  does
the dispute reflect  overwhelming  and  pre-dominantly  civil  flavour;  (c)
would the quashing  involve  settlement  of  entire  or  almost  the  entire
dispute; (d) the compromise/settlement between parties  and/or  other  facts
and the circumstances render possibility  of conviction  remote  and  bleak;
(e) not to quash would cause extreme injustice and would not serve  ends  of
justice and (f) not to quash would result in  abuse  of  process  of  court.

10.         Shri P.P. Rao, learned senior  counsel  for  the  petitioner  in
Special Leave Petition (Crl.) No. 5921 of 2009 submitted  that  Section  482
of the Code is complete answer to the reference made to  the  larger  Bench.
He analysed Section 482 and Section 320  of  the  Code  and  submitted  that
Section 320 did not limit or affect the inherent powers of the  High  Court.
Notwithstanding Section 320, High Court can  exercise  its  inherent  power,
inter alia, to prevent abuse of the process of any  court  or  otherwise  to
secure the ends of justice.  To secure the ends of justice  is  a  wholesome
and definite guideline. It requires formation of opinion by  High  Court  on
the basis of material on record as to whether  the  ends  of  justice  would
justify quashing of a particular criminal complaint, FIR  or  a  proceeding.
When the Court exercises its inherent power under Section 482 in respect  of
offences which are not compoundable taking into account the  fact  that  the
accused and the complainant have  settled  their  differences  amicably,  it
cannot  be  viewed  as  permitting  compounding  of  offence  which  is  not
compoundable.
11.         Mr. P.P. Rao, learned senior counsel submitted that in cases  of
civil wrongs which also constitute criminal offences,  the  High  Court  may
pass order under Section 482 once both parties  jointly  pray  for  dropping
the criminal proceeding initiated by one of  them  to  put  an  end  to  the
dispute and restore peace between the parties.
12.          Mr.  V.  Giri,  learned  senior  counsel  for  the   respondent
(accused) in Special Leave Petition (Crl.) No. 6138 of 2006  submitted  that
the real question  that  needs  to  be  considered  by  this  Court  in  the
reference is whether Section 320(9) of the Code creates a bar or  limits  or
affects the inherent powers of the High  Court  under  Section  482  of  the
Code. It was submitted that Section 320(9) does not create a  bar  or  limit
or affect the inherent powers of the High Court in the  matter  of  quashing
any criminal proceedings. Relying upon various decisions of this  Court,  it
was submitted that it has been consistently held that  the  High  Court  has
unfettered powers under Section 482 of  the  Code  to  secure  the  ends  of
justice and prevent abuse of the process of the  Court.  He  also  submitted
that on compromise between the  parties,  the  High  Court  in  exercise  of
powers under Section 482 can quash the criminal  proceedings,  more  so  the
matters arising from matrimonial dispute, property dispute, dispute  between
close relations, partners or business concerns which  are  predominantly  of
civil, financial or commercial nature.
13.         Learned counsel for the petitioner  in  Special  Leave  Petition
(Crl.) No. 8989 of 2010 submitted that the court should have  positive  view
to quash the proceedings  once  the  aggrieved  party  has  compromised  the
matter with the wrong doer. It was submitted  that  if  the  court  did  not
allow the quashing of FIR or complaint or criminal case  where  the  parties
settled their dispute amicably, it would encourage the parties to speak  lie
in the court and witnesses would become hostile and the criminal  proceeding
would not end in conviction. Learned counsel submitted that the court  could
also consider the two questions (1) can there be  partial  quashing  of  the
FIR qua accused  with  whom  the  complainant/aggrieved  party  enters  into
compromise. (2) can the court quash the proceedings in the cases which  have
not arisen from the matrimonial or  civil  disputes  but  the  offences  are
personal in nature like grievous hurt (S.326), attempt  to  murder  (S.307),
rape (S.376), trespassing (S.452) and kidnapping (S.364, 365) etc.
14.          Mr.  P.  P.  Malhotra,  learned  Additional  Solicitor  General
referred to the scheme of the Code. He submitted that in any  criminal  case
investigated by police on filing the report under Section 173 of  the  Code,
the  Magistrate,  after  applying  his  mind  to  the  chargesheet  and  the
documents accompanying the same, if takes cognizance  of  the  offences  and
summons the accused and/or frames charges and in certain grave  and  serious
offences, commits the accused to be tried by a court  of  Sessions  and  the
Sessions Court after satisfying itself and after hearing the accused  frames
charges for the offences alleged to have been committed  by  him,  the  Code
provides a remedy to accused to challenge the  order  taking  cognizance  or
of framing charges. Similar  situation  may  follow  in  a  complaint  case.
Learned Additional Solicitor General submitted that power under Section  482
of the Code  cannot  be  invoked  in  the  non-compoundable  offences  since
Section  320(9)  expressly  prohibits  the  compounding  of  such  offences.
Quashing of criminal proceedings of the offences which are  non-compoundable
would negative the  effect  of  the  order  of  framing  charges  or  taking
cognizance and therefore quashing would amount to taking away the  order  of
cognizance passed by the Magistrate.
15.         Learned Additional Solicitor General would submit that when  the
Court takes cognizance or frames charges,  it  is  in  accordance  with  the
procedure established by law.  Once the court  takes  cognizance  or  frames
charges, the method to  challenge  such  order  is  by  way  of  appropriate
application to the superior court under the provisions of the Code.
16.          If  power under Section 482 is exercised, in relation  to  non-
compoundable offences, it will amount to what is prohibited by law and  such
cases cannot be brought within the parameters ‘to secure ends  of  justice’.
Any  order  in  violation  and  breach  of  statutory  provisions,   learned
Additional Solicitor General would submit, would be a case against the  ends
of justice. He heavily relied upon a Constitution  Bench  decision  of  this
Court in Central Bureau of Investigation and others v. Keshub  Mahindra  and
others[4] wherein  this Court held, ‘no decision by any  court,  this  Court
not excluded, can be read in a manner as to nullify the  express  provisions
of an Act or the Code.’ With reference to B.S.  Joshi1,  learned  Additional
Solicitor General submitted that that was  a  case  where  the  dispute  was
between the husband and wife and the court  felt  that  if  the  proceedings
were not quashed, it would prevent the woman from settling in life  and  the
wife  had  already  filed  an  affidavit  that  there   were   temperamental
differences  and  she  was   not   supporting   continuation   of   criminal
proceedings. As regards,  Nikhil  Merchant2,  learned  Additional  Solicitor
General submitted that this Court in State of Madhya  Pradesh  v.  Rameshwar
and others[5] held that the said decision was a decision under  Article  142
of the Constitution.  With  regard  to  Manoj  Sharma3,  learned  Additional
Solicitor General referred to the observations made by Markandey  Katju,  J.
in paragraphs 24 and 28 of the Report.
17.         Learned Additional Solicitor General  submitted  that  the  High
Court has no power to quash criminal proceedings in regard  to  offences  in
which a cognizance has been taken by the  Magistrate  merely  because  there
has been  settlement  between  the  victim  and  the  offender  because  the
criminal offence is against the society.
18.         More than 65 years back, in Emperor v.  Khwaja  Nazir  Ahmed[6],
it was observed by the Privy Council that  Section  561A  (corresponding  to
Section 482 of the Code) had not given increased powers to the  Court  which
it did not possess before that section was enacted. It  was  observed,  `The
section gives no new powers, it only provides that  those  which  the  court
already inherently possess shall be  preserved  and  is  inserted  lest,  as
their Lordships think,   it  should  be  considered  that  the  only  powers
possessed by the court   are  those  expressly  conferred  by  the  Criminal
Procedure Code and that no inherent power had survived the  passing  of  the
Code’.
19.         In Khushi Ram v. Hashim and others[7], this Court held as  under
:
           “It is unnecessary to emphasise  that the inherent power of  the
           High Court under Section 561A cannot be  invoked  in  regard  to
           matters which are directly covered by the specific provisions of
           the Code…”


20.         The above view of Privy  Council  in  Khwaja  Nazir  Ahmed6  and
another decision in Lala Jairam Das  &  Ors.  v.  Emperor[8]  was  expressly
accepted by this Court in State of Uttar  Pradesh.  v.  Mohammad  Naim[9]  .
The Court said :
           “7. It is now well settled  that  the  section  confers  no  new
           powers on the High Court.  It  merely  safeguards  all  existing
           inherent powers possessed by a High Court necessary (among other
           purposes) to secure the ends of justice.  The  section  provides
           that those powers which the court inherently possesses shall  be
           preserved lest it be considered that the only  powers  possessed
           by the court are those expressly conferred by the Code and  that
           no inherent powers had survived the passing of the Code………..”

21.         In Pampathy v. State of Mysore[10], a three-Judge Bench of  this
Court stated as follows :
           “ The inherent power of the  High  Court  mentioned  in  Section
           561A, Criminal Procedure Code can be exercised only  for  either
           of the three purposes specifically mentioned in the section. The
           inherent power cannot  be  invoked  in  respect  of  any  matter
           covered by the specific provisions of the Code. It  cannot  also
           be invoked if its exercise would be inconsistent with any of the
           specific provisions of the Code. It is only  if  the  matter  in
           question is not covered by any specific provisions of  the  Code
           that s. 561A can come into operation…….”

22.         In State of Karnataka v. L. Muniswamy and others[11],  a  three-
Judge Bench of this Court referred  to  Section  482  of  the  Code  and  in
paragraph 7 (pg. 703) of the Report held as under :
           “7.  …….. In the exercise of  this  wholesome  power,  the  High
           Court is entitled to quash a  proceeding  if  it  comes  to  the
           conclusion that allowing the proceeding to continue would be  an
           abuse of the process of the Court or that the  ends  of  justice
           require that the proceeding ought to be quashed. The  saving  of
           the High Court's inherent powers, both  in  civil  and  criminal
           matters, is designed to achieve a salutary public purpose  which
           is that  a  court  proceeding  ought  not  to  be  permitted  to
           degenerate into a weapon of  harassment  or  persecution.  In  a
           criminal case, the veiled object behind a lame prosecution,  the
           very nature of the  material  on  which  the  structure  of  the
           prosecution rests and the like would justify the High  Court  in
           quashing the proceeding in the interest of justice. The ends  of
           justice are higher than the ends of mere law though justice  has
           got  to  be  administered  according  to  laws   made   by   the
           legislature.  The  compelling   necessity   for   making   these
           observations is that without a proper realisation of the  object
           and purpose of the provision which seeks to  save  the  inherent
           powers of the High Court to do justice between the State and its
           subjects, it would be impossible to  appreciate  the  width  and
           contours of that salient jurisdiction.”

23.         The Court then observed that the considerations  justifying  the
exercise of inherent powers for securing the ends of justice naturally  vary
from case to case and a jurisdiction as wholesome as the  one  conferred  by
Section 482 ought not to be encased  within  the  straitjacket  of  a  rigid
formula.
24.         A three-Judge Bench of this Court in Madhu Limaye v.  The  State
of Maharashtra[12], dealt  with  the  invocation  of  inherent  power  under
Section 482 for quashing interlocutory order   even  though  revision  under
Section 397(2) of the Code was prohibited. The Court noticed the  principles
in relation to the exercise of the inherent  power  of  the  High  Court  as
under :
           “(1)  That the power is not to be resorted  to  if  there  is  a
           specific provision in the Code for the redress of the  grievance
           of the aggrieved party;


           (2)   That it should be  exercised  very  sparingly  to  prevent
           abuse of process of any Court or otherwise to secure the ends of
           justice;


           (3)   That it should not be exercised as against the express bar
           of law engrafted in any other provision of the Code.”

25.         In Raj Kapoor and others v.  State  and  others[13],  the  Court
explained the width and amplitude of the inherent power of  the  High  Court
under Section 482 vis-à-vis revisional power under Section 397 as follows:
           “10.  …….The  opening  words  of  Section  482  contradict  this
           contention because nothing of the Code, not  even  Section  397,
           can affect the amplitude of the inherent power preserved  in  so
           many terms by the language of Section 482. Even  so,  a  general
           principle pervades this branch of law when a specific  provision
           is made: easy resort to inherent power is not right except under
           compelling  circumstances.  Not  that  there   is   absence   of
           jurisdiction but that inherent power should not invade areas set
           apart for specific power under the same Code. In Madhu  Limaye’s
           case this Court has exhaustively and, if I may say so with great
           respect, correctly  discussed  and  delineated  the  law  beyond
           mistake. While it is true  that  Section  482  is  pervasive  it
           should not subvert legal interdicts written into the same  Code,
           such, for instance, in Section  397(2).  Apparent  conflict  may
           arise in some situations between the two provisions and a  happy
           solution




              “would be to say that the bar provided in sub-section (2)  of
              Section 397 operates only in exercise of the revisional power
              of the High Court, meaning thereby that the High  Court  will
              have no power of revision in relation  to  any  interlocutory
              order. Then in accordance with one or  the  other  principles
              enunciated above, the inherent power  will  come  into  play,
              there being no other provision in the Code for the redress of
              the grievance of the aggrieved party. But then, if the  order
              assailed is purely of an interlocutory character which  could
              be corrected in exercise of the revisional power of the  High
              Court under the 1898 Code, the  High  Court  will  refuse  to
              exercise its inherent power. But in case the  impugned  order
              clearly brings about a situation which is  an  abuse  of  the
              process of the Court or for the purpose of securing the  ends
              of justice interference  by  the  High  Court  is  absolutely
              necessary, then nothing contained in Section 397(2) can limit
              or affect the exercise of the  inherent  power  by  the  High
              Court. But such cases would be few and far between. The  High
              Court must exercise the inherent power  very  sparingly.  One
              such case would be the desirability  of  the  quashing  of  a
              criminal proceeding initiated illegally,  vexatiously  or  as
              being without jurisdiction”.


           In short, there is no total ban  on  the  exercise  of  inherent
           power  where  abuse  of  the  process  of  the  court  or  other
           extraordinary situation excites the  court's  jurisdiction.  The
           limitation is self-restraint, nothing more. The  policy  of  the
           law is clear that interlocutory orders, pure and simple,  should
           not be taken up to  the  High  Court  resulting  in  unnecessary
           litigation and delay. At the other  extreme,  final  orders  are
           clearly capable of being  considered  in  exercise  of  inherent
           power, if glaring injustice stares the court  in  the  face.  In
           between is a tertium quid, as Untwalia, J. has  pointed  out  as
           for example, where it is more than a purely interlocutory  order
           and less than a final disposal. The  present  case  falls  under
           that category where the accused complain of  harassment  through
           the court's process. Can we state that in  this  third  category
           the inherent power can be exercised? In the words  of  Untwalia,
           J.: (SCC p. 556, para 10)




              “The answer is obvious that  the  bar  will  not  operate  to
              prevent the abuse of the  process  of  the  Court  and/or  to
              secure the ends of justice. The label of the  petition  filed
              by an aggrieved party  is  immaterial.  The  High  Court  can
              examine the matter in an appropriate case under its  inherent
              powers. The present case undoubtedly falls  for  exercise  of
              the power of the High Court in accordance with Section 482 of
              the 1973 Code, even assuming, although  not  accepting,  that
              invoking  the  revisional  power  of  the   High   Court   is
              impermissible.”


           I am, therefore clear in my mind that the inherent power is  not
           rebuffed in the case situation before us. Counsel on both sides,
           sensitively responding to our allergy for  legalistics,  rightly
           agreed that the fanatical insistence on the formal filing  of  a
           copy of the order under cessation need not take up this  court's
           time. Our conclusion concurs with the concession of  counsel  on
           both sides that merely because a copy of the order has not  been
           produced, despite its presence in the records in the  court,  it
           is not possible for me to hold that the  entire  revisory  power
           stands frustrated and the inherent power stultified.”

26.         In Simrikhia  v.  Dolley  Mukherjee  and  Chhabi  Mukherjee  and
another[14], the Court considered the scope of Section 482 of the Code in  a
case where on dismissal of petition under Section  482,  a  second  petition
under Section 482 of the Code was made. The  contention  before  this  Court
was that the  second  petition  under  Section  482  of  the  Code  was  not
entertainable; the exercise of power under Section 482 on a second  petition
by the same party on the same ground virtually amounts  to   review  of  the
earlier order and is contrary to the spirit of Section 362 of the  Code  and
the High Court was in error in having quashed the  proceedings  by  adopting
that course. While accepting this argument, this Court held as follows :
           “3.    ……The inherent power under Section  482  is  intended  to
           prevent the abuse of the process of the court and to secure ends
           of justice. Such power cannot be exercised to do something which
           is expressly barred under the Code. If any consideration of  the
           facts by way of review is not permissible under the Code and  is
           expressly barred, it is  not  for  the  court  to  exercise  its
           inherent power to reconsider the matter and record a conflicting
           decision. If there had been change in the circumstances  of  the
           case, it would be in order for the High Court  to  exercise  its
           inherent  powers  in  the  prevailing  circumstances  and   pass
           appropriate orders to secure the ends of justice or  to  prevent
           the abuse of the process of the court. Where there  is  no  such
           changed circumstances and the decision has to be arrived  at  on
           the facts that existed as on the date of the earlier order,  the
           exercise of the power to reconsider the same materials to arrive
           at  different  conclusion  is  in  effect  a  review,  which  is
           expressly barred under Section 362.


           5. Section 362 of the Code expressly provides that no court when
           it has signed its judgment or final order disposing of  a  case,
           shall alter or review the same except to correct a  clerical  or
           arithmetical error save  as  otherwise  provided  by  the  Code.
           Section 482 enables the High Court to make such order as may  be
           necessary to give effect to any  order  under  the  Code  or  to
           prevent abuse of the process of any court or otherwise to secure
           the ends of justice. The inherent powers, however, as  much  are
           controlled by principle and precedent as are its express  powers
           by statute. If a matter is covered by an express letter of  law,
           the court cannot give a go-by to the  statutory  provisions  and
           instead  evolve  a  new  provision  in  the  garb  of   inherent
           jurisdiction.


           7. The inherent jurisdiction of the High Court cannot be invoked
           to override bar of review  under  Section  362.  It  is  clearly
           stated in Sooraj Devi v. Pyare Lal, that the inherent  power  of
           the  court  cannot  be  exercised  for  doing  that   which   is
           specifically prohibited by the Code. The law is therefore  clear
           that the inherent power cannot be exercised for doing that which
           cannot be done on account of the bar under other  provisions  of
           the Code. The court is not empowered to review its own  decision
           under the purported exercise of inherent power. We find that the
           impugned order in this case  is  in  effect  one  reviewing  the
           earlier order on a reconsideration of the  same  materials.  The
           High Court has grievously erred in doing so. Even on merits,  we
           do not find any compelling reasons to quash the  proceedings  at
           that stage.”

27.         In Dharampal & Ors. v.   Ramshri  (Smt.)  and  others[15],  this
Court observed as follows :
           “……It is now well settled that the inherent powers under Section
           482 of the Code cannot be utilized for exercising  powers  which
           are expressly barred by the Code…….”


28.         In Arun Shankar Shukla v. State of Uttar Pradesh and ors.[16]  ,
a two-Judge Bench of this Court held as under :

           “….It is true that under Section 482 of the Code, the High Court
           has inherent powers to make such orders as may be  necessary  to
           give effect to any order under the Code or to prevent the  abuse
           of process of any court or  otherwise  to  secure  the  ends  of
           justice. But the expressions “abuse of the process  of  law”  or
           “to  secure  the  ends  of  justice”  do  not  confer  unlimited
           jurisdiction on the High Court and  the  alleged  abuse  of  the
           process of law or the ends of justice could only be  secured  in
           accordance with law including procedural law and not  otherwise.
           Further, inherent powers are  in  the  nature  of  extraordinary
           powers to be used sparingly for achieving the  object  mentioned
           in Section 482 of the Code in cases where there  is  no  express
           provision empowering the High Court to achieve the said  object.
           It is well-neigh settled  that  inherent  power  is  not  to  be
           invoked in respect of any matter covered by specific  provisions
           of the Code or if  its  exercise  would  infringe  any  specific
           provision of the Code. In  the  present  case,  the  High  Court
           overlooked the procedural  law  which  empowered  the  convicted
           accused to prefer statutory appeal  against  conviction  of  the
           offence. The High Court has intervened at an uncalled for  stage
           and soft-pedalled the course of justice at a very crucial  stage
           of the trial.”






29.         In G. Sagar Suri and another v. State of  U.P.  and  others[17],
the Court was concerned with  the  order  of  the  High  Court  whereby  the
application under  Section  482  of  the  Code  for  quashing  the  criminal
proceedings under Sections 406 and 420 of the IPC pending in  the  Court  of
Chief Judicial Magistrate, Ghaziabad was dismissed. In paragraph     8  (pg.
643) of the Report, the Court held as under:
           “8. Jurisdiction under  Section  482  of  the  Code  has  to  be
           exercised with great care. In exercise of its  jurisdiction  the
           High Court is not to examine the matter superficially. It is  to
           be seen if a matter, which is essentially of a civil nature, has
           been given a cloak of criminal offence. Criminal proceedings are
           not a short cut of  other  remedies  available  in  law.  Before
           issuing process a criminal court has to exercise a great deal of
           caution. For the accused it is a serious matter. This Court  has
           laid certain principles on the basis of which the High Court  is
           to exercise its jurisdiction under  Section  482  of  the  Code.
           Jurisdiction under this section has to be exercised  to  prevent
           abuse of the process of any court or  otherwise  to  secure  the
           ends of justice.”

30.         A three-Judge Bench of this Court in State of  Karnataka  v.  M.
Devendrappa and  another[18]  restated  what  has  been  stated  in  earlier
decisions that Section 482 does not  confer  any  new  powers  on  the  High
Court, it only saves the inherent power which  the  court  possessed  before
the commencement of the Code. The Court went on to explain the  exercise  of
inherent power by the High Court  in paragraph 6 (Pg.94) of  the  Report  as
under :
           “6.   ………It  envisages  three  circumstances  under  which   the
           inherent jurisdiction may be  exercised,  namely,  (i)  to  give
           effect to an order under the Code, (ii) to prevent abuse of  the
           process of court, and (iii) to  otherwise  secure  the  ends  of
           justice. It is neither possible nor desirable to  lay  down  any
           inflexible rule which would  govern  the  exercise  of  inherent
           jurisdiction. No legislative enactment  dealing  with  procedure
           can provide for all  cases  that  may  possibly  arise.  Courts,
           therefore, have inherent powers apart from express provisions of
           law which are necessary for proper discharge  of  functions  and
           duties imposed upon them by law.  That  is  the  doctrine  which
           finds expression in the  section  which  merely  recognizes  and
           preserves inherent  powers  of  the  High  Courts.  All  courts,
           whether civil or criminal possess, in the absence of any express
           provision, as inherent in their constitution, all such powers as
           are necessary to do the right and to undo a wrong in  course  of
           administration of justice on the principle  quando  lex  aliquid
           alicui concedit, concedere videtur et id sine quo res ipsae esse
           non potest (when the law gives a person anything  it  gives  him
           that without which it cannot  exist).  While  exercising  powers
           under the section, the court does not function  as  a  court  of
           appeal or revision.  Inherent  jurisdiction  under  the  section
           though wide has to be exercised sparingly,  carefully  and  with
           caution and only when such exercise is justified  by  the  tests
           specifically laid down in  the  section  itself.  It  is  to  be
           exercised ex debito justitiae to do real and substantial justice
           for the administration of which alone courts exist. Authority of
           the court exists for advancement of justice and if  any  attempt
           is made to abuse that authority so as to produce injustice,  the
           court has power to prevent  abuse.  It  would  be  an  abuse  of
           process of the court to allow any action which would  result  in
           injustice and prevent promotion of justice. In exercise  of  the
           powers court would be justified to quash any  proceeding  if  it
           finds that initiation/continuance of it amounts to abuse of  the
           process  of  court  or  quashing  of  these  proceedings   would
           otherwise serve the ends of justice……..”


The Court in paragraph 9 (Pg. 96) further stated :


           “9.  ………the powers possessed by the High Court under Section 482
           of the Code are very wide and the very plenitude  of  the  power
           requires great caution in its exercise. Court must be careful to
           see that its decision in exercise of  this  power  is  based  on
           sound principles. The inherent power should not be exercised  to
           stifle a  legitimate  prosecution.  The  High  Court  being  the
           highest court of a State should normally refrain from  giving  a
           prima facie decision in  a  case  where  the  entire  facts  are
           incomplete and hazy, more so when  the  evidence  has  not  been
           collected and produced before the Court and the issues involved,
           whether factual or legal, are of magnitude and cannot be seen in
           their true perspective without sufficient material.  Of  course,
           no hard-and-fast rule can be laid down in  regard  to  cases  in
           which  the  High   Court   will   exercise   its   extraordinary
           jurisdiction of quashing the proceeding at any stage……”


31.         In Central Bureau of Investigation v. A. Ravishankar Prasad  and
others[19], the Court observed in paragraphs 17,19,20 and 39 (Pgs. 356,  357
and 363) of the Report as follows :
           “17. Undoubtedly, the High Court possesses inherent powers under
           Section 482 of the Code of Criminal  Procedure.  These  inherent
           powers of the High Court are meant to act ex debito justitiae to
           do real and substantial justice, for the administration of which
           alone it exists, or to prevent  abuse  of  the  process  of  the
           court.


           19.  This  Court  time  and  again   has   observed   that   the
           extraordinary power under Section 482 CrPC should  be  exercised
           sparingly and with great care and caution. The  Court  would  be
           justified in exercising the  power  when  it  is  imperative  to
           exercise the power in order to prevent injustice.  In  order  to
           understand the nature and scope of power under Section 482  CrPC
           it has become necessary to recapitulate the ratio of the decided
           cases.


           20. Reference to the  following  cases  would  reveal  that  the
           Courts have consistently taken the view that they must  use  the
           court's extraordinary power only to prevent injustice and secure
           the ends of justice. We have largely inherited the provisions of
           inherent powers from the English  jurisprudence,  therefore  the
           principles decided by the English courts would be  of  relevance
           for us. It is generally agreed that the Crown Court has inherent
           power to protect its process from abuse. The English courts have
           also used inherent power to achieve the same objective.


           39. Careful analysis of all these judgments clearly reveals that
           the exercise of inherent powers would  entirely  depend  on  the
           facts  and  circumstances  of   each   case.   The   object   of
           incorporating inherent powers in the Code is to prevent abuse of
           the process of the court or to secure ends of justice.”

32           In  Devendra  and  others  v.  State  of  Uttar   Pradesh   and
another[20], while dealing with the question whether a  pure  civil  dispute
can be subject matter of a criminal proceeding under Sections 420, 467,  468
and 469 IPC, a two-Judge Bench of this Court observed that  the  High  Court
ordinarily would exercise its jurisdiction under Section 482 of the Code  if
the allegations made in the First Information Report,  even  if  given  face
value and taken to be correct  in  their  entirety,  do  not  make  out  any
offence.
33.          In  Sushil  Suri  v.  Central  Bureau  of   Investigation   and
another[21], the Court considered  the  scope  and  ambit  of  the  inherent
jurisdiction of the High Court and made the following observations  in  para
16 (pg. 715) of the Report:
           “16. Section 482 CrPC itself envisages three circumstances under
           which the inherent jurisdiction may be  exercised  by  the  High
           Court, namely, (i) to give effect to an order under  CrPC;  (ii)
           to prevent an abuse of  the  process  of  court;  and  (iii)  to
           otherwise secure the ends of justice. It is trite that  although
           the power possessed by the High Court under the  said  provision
           is very wide but it is not unbridled. It  has  to  be  exercised
           sparingly, carefully and cautiously, ex debito justitiae  to  do
           real and substantial justice for which alone the  Court  exists.
           Nevertheless, it is neither feasible nor desirable to  lay  down
           any inflexible rule which would govern the exercise of  inherent
           jurisdiction of the Court. Yet, in numerous  cases,  this  Court
           has laid down certain broad principles which  may  be  borne  in
           mind while  exercising  jurisdiction  under  Section  482  CrPC.
           Though it is emphasised that exercise of inherent  powers  would
           depend on the facts and circumstances  of  each  case,  but  the
           common thread which  runs  through  all  the  decisions  on  the
           subject is that the Court would be  justified  in  invoking  its
           inherent  jurisdiction  where  the  allegations  made   in   the
           complaint or charge-sheet, as the case may be,  taken  at  their
           face value and accepted in their entirety do not constitute  the
           offence alleged.”



34.         Besides B.S. Joshi1, Nikhil Merchant2 and Manoj  Sharma3,  there
are other decisions of this Court where the scope of Section  320  vis-à-vis
the inherent power of the High Court under Section 482 of the Code has  come
up for consideration.
35.         In Madan Mohan Abbot v.  State  of  Punjab[22],  in  the  appeal
before this Court which arose from an order of the High  Court  refusing  to
quash the FIR against the appellant lodged under  Sections  379,  406,  409,
418,  506/34,  IPC  on  account  of  compromise  entered  into  between  the
complainant and the accused, in paragraphs 5 and 6 (pg. 584) of the  Report,
the Court held as under :

           “5. It is on the basis of this compromise that  the  application
           was filed in the High Court for quashing  of  proceedings  which
           has been dismissed by the  impugned  order.  We  notice  from  a
           reading of the FIR and the other documents on  record  that  the
           dispute was purely a personal one between two contesting parties
           and that it arose out of  extensive  business  dealings  between
           them and that there was absolutely no public policy involved  in
           the nature of the allegations made against the accused. We  are,
           therefore, of the opinion that no useful purpose would be served
           in  continuing  with  the  proceedings  in  the  light  of   the
           compromise  and  also  in  the  light  of  the  fact  that   the
           complainant has on 11-1-2004 passed away and the possibility  of
           a conviction being recorded has thus to be ruled out.


           6. We need to emphasise that it is  perhaps  advisable  that  in
           disputes where the question involved is  of  a  purely  personal
           nature, the court should ordinarily  accept  the  terms  of  the
           compromise even in criminal proceedings as  keeping  the  matter
           alive  with  no  possibility  of  a  result  in  favour  of  the
           prosecution is a luxury which the courts,  grossly  overburdened
           as they are, cannot afford and that the time  so  saved  can  be
           utilised in deciding more effective and  meaningful  litigation.
           This is a common sense approach to the matter based on ground of
           realities and bereft of the technicalities of the law.”

36.         In Ishwar Singh v. State of Madhya Pradesh[23],  the  Court  was
concerned with a case where  the  accused  –  appellant  was  convicted  and
sentenced by the Additional Sessions Judge for an offence  punishable  under
Section 307, IPC. The High Court dismissed the appeal from the judgment  and
conviction.  In the appeal, by special leave, the injured – complainant  was
ordered to be joined as party as it  was  stated  by  the  counsel  for  the
appellant that mutual compromise has been arrived at  between  the  parties,
i.e. accused on the one hand and the complainant – victim on the other  hand
during the pendency of the proceedings before this Court. It was  prayed  on
behalf of the appellant that the appeal be  disposed  of  on  the  basis  of
compromise between the parties. In para 12 (pg.  670)  of  the  Report,  the
Court observed as follows :

           “12. Now, it cannot be gainsaid that an offence punishable under
           Section 307 IPC is not a compoundable offence.  Section  320  of
           the Code of Criminal Procedure, 1973 expressly  states  that  no
           offence shall be compounded if it is not compoundable under  the
           Code. At  the  same  time,  however,  while  dealing  with  such
           matters, this  Court  may  take  into  account  a  relevant  and
           important consideration about compromise between the parties for
           the purpose of reduction of sentence.”



37.         The Court also referred to the earlier decisions of  this  Court
in Jetha Ram v. State of Rajasthan[24], Murugesan  v.  Ganapathy  Velar[25],
Ishwarlal  v. State of M.P.[26] and Mahesh  Chand  &  another  v.  State  of
Rajasthan[27] and noted in paragraph 13 (pg. 670) of the Report as  follows:


           “13. In Jetha Ram v. State of Rajasthan, Murugesan v.  Ganapathy
           Velar and Ishwarlal v. State of M.P. this  Court,  while  taking
           into account the fact of compromise between the parties, reduced
           sentence imposed on the appellant-accused to already  undergone,
           though the offences were  not  compoundable.  But  it  was  also
           stated that in Mahesh Chand v. State of Rajasthan  such  offence
           was ordered to be compounded.”

Then, in paragraphs 14 and 15 (pg. 670) the Court held as under :

           “14. In our considered opinion, it would not be  appropriate  to
           order compounding of an offence not compoundable under the  Code
           ignoring  and  keeping  aside  statutory  provisions.   In   our
           judgment, however, limited submission of the learned counsel for
           the  appellant  deserves  consideration  that   while   imposing
           substantive sentence,  the  factum  of  compromise  between  the
           parties is indeed a relevant circumstance which  the  Court  may
           keep in mind.




           15. In the instant case, the incident  took  place  before  more
           than fifteen years; the parties are residing in one and the same
           village and they are also relatives. The appellant was about  20
           years of age at the time of commission  of  crime.  It  was  his
           first offence. After conviction, the petitioner was  taken  into
           custody. During the pendency of appeal before the High Court, he
           was enlarged on bail but, after the decision of the High  Court,
           he again surrendered and is in jail at present.  Though  he  had
           applied for bail, the prayer was not  granted  and  he  was  not
           released  on  bail.  Considering  the  totality  of  facts   and
           circumstances, in our opinion, the ends of justice would be  met
           if  the  sentence  of  imprisonment  awarded  to  the  appellant
           (Accused 1) is reduced to the period already undergone.”



   38.           In Rumi Dhar (Smt.) v. State of West Bengal and another[28]
   , the Court was concerned with applicability of Section 320 of  the  Code
   where the accused was being prosecuted for commission of  offences  under
   Sections 120-B/420/467/468/471 of the IPC along with  the  bank  officers
   who were being prosecuted under Section 13(2) read with Section  13(1)(d)
   of Prevention of Corruption Act, 1988. The accused   had paid the  entire
   due amount as per the settlement with the bank in the matter of  recovery
   before the Debts Recovery Tribunal. The accused  prayed for her discharge
   on the grounds (i) having regard to the settlement arrived at between her
   and the bank, no case for proceeding against her has been made out;  (ii)
   the amount having already been paid  and  the  title  deeds  having  been
   returned, the criminal proceedings should be dropped on the basis of  the
   settlement and (iii) the dispute between the parties were purely civil in
   nature and that she had not fabricated any document or cheated  the  bank
   in any way whatsoever and charges could not have been framed against her.
    The CBI contested the application for discharge on the ground that  mere
   repayment to the bank could not exonerate the accused from  the  criminal
   proceeding. The two-Judge Bench of this Court referred to Section 320  of
   the Code and the earlier decisions of this Court in CBI v.  Duncans  Agro
   Industries Limited[29], State of Haryana  v.  Bhajan  Lal[30],  State  of
   Bihar v. P.P. Sharma[31], Janata Dal v.  H.S.  Chowdhary[32]  and  Nikhil
   Merchant2 which followed the decision  in  B.S.  Joshi1   and  then  with
   reference to Article 142 of the Constitution and Section 482 of the  Code
   refused to quash the charge against the accused by holding as under:
           “24. The jurisdiction of the Court  under  Article  142  of  the
           Constitution of India is not in dispute. Exercise of such  power
           would, however, depend on the facts and  circumstances  of  each
           case. The High Court, in  exercise  of  its  jurisdiction  under
           Section 482 of the Code of Criminal Procedure, and  this  Court,
           in terms of Article 142 of the Constitution of India, would  not
           direct quashing of a case involving crime  against  the  society
           particularly when both the learned Special  Judge  as  also  the
           High Court have found that a prima facie case has been made  out
           against the appellant herein for framing the charge.”




39.         In Shiji alias Pappu and  others  vs.  Radhika  and  another[33]
this Court considered the exercise of  inherent  power  by  the  High  Court
under Section 482 in a matter where the offence was not compoundable as  the
accused was already involved in commission of the offences punishable  under
Sections 354 and 394 IPC. The High Court  rejected  the  prayer  by  holding
that the offences with    which appellants were charged  are  not  ‘personal
in nature’ to justify quashing the criminal proceedings on the  basis  of  a
compromise arrived at between  the  complainant  and  the  appellants.  This
Court considered earlier decisions of this Court, the  provisions  contained
in Sections 320 and 394 of the Code and in paragraphs 17, 18  and  19  (pgs.
712 and 713) of the Report held as under:
           “17. It is manifest  that  simply  because  an  offence  is  not
           compoundable under Section 320 CrPC is by itself no  reason  for
           the High Court to refuse exercise of its power under Section 482
           CrPC. That power can in our opinion be exercised in cases  where
           there is no chance of recording a conviction against the accused
           and the entire exercise of a trial is destined to be an exercise
           in futility. There is a subtle distinction  between  compounding
           of offences by the parties before the trial court or  in  appeal
           on the one hand and the exercise of power by the High  Court  to
           quash the prosecution under Section 482 CrPC on the other. While
           a  court  trying  an  accused  or  hearing  an  appeal   against
           conviction, may not be competent to  permit  compounding  of  an
           offence based on a settlement arrived at between the parties  in
           cases where the offences are not compoundable under Section 320,
           the High Court may quash the prosecution even in cases where the
           offences  with  which  the  accused  stand  charged   are   non-
           compoundable. The  inherent  powers  of  the  High  Court  under
           Section 482 CrPC are not for that purpose controlled by  Section
           320 CrPC.


           18. Having said so, we must hasten to add that the plenitude  of
           the power under Section 482 CrPC by itself, makes it  obligatory
           for the High Court to exercise the same  with  utmost  care  and
           caution. The width and the nature of the  power  itself  demands
           that its exercise is sparing and only in cases  where  the  High
           Court is, for reasons to be recorded, of  the  clear  view  that
           continuance of the prosecution would be nothing but an abuse  of
           the process of law. It is neither necessary nor proper for us to
           enumerate the situations in which the exercise  of  power  under
           Section 482 may be justified. All that we need to  say  is  that
           the exercise of power must be for securing the ends  of  justice
           and only in cases where  refusal  to  exercise  that  power  may
           result in the abuse of the process of law. The High Court may be
           justified in declining interference if  it  is  called  upon  to
           appreciate  evidence  for  it  cannot  assume  the  role  of  an
           appellate court while dealing with a petition under Section  482
           of the Criminal Procedure Code. Subject to the above,  the  High
           Court will have to consider the facts and circumstances of  each
           case to determine whether it is a fit case in which the inherent
           powers may be invoked.


           19. Coming to the case at hand, we are  of  the  view  that  the
           incident in question had its genesis in a  dispute  relating  to
           the access to the two plots which are adjacent to each other. It
           was not a case of broad daylight robbery for gain. It was a case
           which has its origin in the civil dispute between  the  parties,
           which dispute has, it appears, been resolved by them. That being
           so, continuance of the prosecution where the complainant is  not
           ready to support the allegations which are now described by  her
           as arising out of some “misunderstanding and misconception” will
           be  a  futile  exercise  that  will  serve  no  purpose.  It  is
           noteworthy that the two alleged eyewitnesses,  who  are  closely
           related to the complainant, are also no longer supportive of the
           prosecution version. The continuance of the proceedings is  thus
           nothing but an empty formality. Section 482 CrPC could, in  such
           circumstances, be justifiably  invoked  by  the  High  Court  to
           prevent abuse of the process of law  and  thereby  preventing  a
           wasteful exercise by the courts below”.




40.          In  Ashok  Sadarangani  and  Anr.  vs.  Union  of   India   and
others[34],  the issue under consideration was whether an offence which  was
not compoundable under the provisions of the Code could be  quashed.    That
was a case where   a  criminal case   was  registered  against  the  accused
persons under Sections 120-B, 465, 467, 468 and 471 of IPC.  The  allegation
was  that  accused  secured  the  credit  facilities  by  submitting  forged
property documents  as  collaterals   and  utilized  such  facilities  in  a
dishonest and fraudulent manner by opening Letters of Credit in  respect  of
foreign supplies of goods, without actually bringing any goods but  inducing
the Bank to negotiate the Letters of Credit in favour of  foreign  suppliers
and also by misusing the cash credit facility.   The  Court  considered  the
earlier  decisions of this Court including B.S.  Joshi1,  Nikhil  Merchant2,
Manoj Sharma3, Shiji alias Pappu33, Duncans Agro Industries Limited29,  Rumi
Dhar (Smt.)28 and  Sushil  Suri21   and  also  referred   to  the  order  of
reference in one of  the cases before us.  In paragraphs 17, 18, 19  and  20
of the Report it was held as under:-

           “17. Having carefully considered the facts and circumstances  of
           the case, as  also  the  law  relating  to  the  continuance  of
           criminal cases where the complainant and the accused had settled
           their differences and had arrived at an amicable arrangement, we
           see no reason to differ with the views that had  been  taken  in
           Nikhil Merchant's case or Manoj Sharma's  case  (supra)  or  the
           several decisions that have come thereafter. It is, however,  no
           coincidence that the golden thread which runs  through  all  the
           decisions  cited,  indicates  that  continuance  of  a  criminal
           proceeding after a compromise has been arrived  at  between  the
           complainant and the  accused,  would  amount  to  abuse  of  the
           process of court and an exercise in futility,  since  the  trial
           could be prolonged and ultimately, may conclude  in  a  decision
           which may be of any consequence to any  of  the  other  parties.
           Even in Sushil Suri's  case  on  which  the  learned  Additional
           Solicitor General had relied, the learned Judges who decided the
           said case, took note of the decisions in  various  other  cases,
           where it had been  reiterated  that  the  exercise  of  inherent
           powers would depend entirely on the facts and  circumstances  of
           each case. In other words, not that there is any restriction  on
           the power or authority vested in the Supreme Court in exercising
           powers under Article  142  of  the  Constitution,  but  that  in
           exercising such powers the Court has to be circumspect, and  has
           to exercise such power sparingly in  the  facts  of  each  case.
           Furthermore, the issue, which has  been  referred  to  a  larger
           Bench in Gian Singh's case (supra) in relation to the  decisions
           of this Court in B.S. Joshi's case, Nikhil Merchant's  case,  as
           also Manoj  Sharma's  case,  deal  with  a  situation  which  is
           different from that of the present  case.  While  in  the  cases
           referred to hereinabove, the main question was whether  offences
           which were not compoundable, under Section 320 Cr.P.C.  could be
           quashed under Section 482 Cr.P.C.,  in  Gian  Singh's  case  the
           Court was of the view that a non-compoundable offence could  not
           be compounded and that the Courts should not try  to  take  over
           the function of the Parliament or executive. In fact, in none of
           the cases referred to in  Gian  Singh's  case,  did  this  Court
           permit compounding of non-compoundable offences.  On  the  other
           hand, upon taking various factors into consideration,  including
           the futility of continuing with the criminal  proceedings,  this
           Court ultimately quashed the same.


           18. In addition to the above, even with regard to  the  decision
           of this Court in Central Bureau of Investigation v. Ravi Shankar
           Prasad and Ors. : [(2009) 6 SCC 351], this Court  observed  that
           the High Court can exercise power under Section 482  Cr.P.C.  to
           do real and substantial justice and  to  prevent  abuse  of  the
           process of Court when exceptional  circumstances  warranted  the
           exercise of such power. Once the circumstances in a  given  case
           were held to be such as to attract the provisions of Article 142
           or Articles 32 and 226 of the Constitution, it would be open  to
           the Supreme Court to exercise  its  extraordinary  powers  under
           Article 142 of the Constitution to quash  the  proceedings,  the
           continuance whereof would only amount to abuse of the process of
           Court. In the instant case the dispute between  the  petitioners
           and the Banks  having  been  compromised,  we  have  to  examine
           whether the continuance of the criminal  proceeding  could  turn
           out to be an exercise  in  futility  without  anything  positive
           being ultimately achieved.


           19. As was indicated in  Harbhajan  Singh's  case  (supra),  the
           pendency of a reference to a larger Bench, does  not  mean  that
           all other proceedings involving  the  same  issue  would  remain
           stayed till a  decision  was  rendered  in  the  reference.  The
           reference made in Gian Singh's case (supra) need not, therefore,
           detain us. Till such time as the decisions cited at the Bar  are
           not modified or altered in any way, they continue  to  hold  the
           field.


           20. In the present case, the fact situation  is  different  from
           that  in  Nikhil  Merchant's  case  (supra).  While  in   Nikhil
           Merchant's case the accused  had  misrepresented  the  financial
           status of the company in question in order to  avail  of  credit
           facilities to an extent to which the company was  not  entitled,
           in the instant case, the allegation is that as part of a  larger
           conspiracy, property acquired on lease from a person who had  no
           title to  the  leased  properties,  was  offered  as  collateral
           security for loans obtained. Apart from the  above,  the  actual
           owner of the property has filed  a  criminal  complaint  against
           Shri Kersi V. Mehta who had held himself out as the Attorney  of
           the owner and his family members. The ratio of the decisions  in
           B.S. Joshi's case and in Nikhil  Merchant's  case  or  for  that
           matter, even in Manoj Sharma's case, does not help the  case  of
           the writ petitioners. In Nikhil Merchant's case, this Court  had
           in the facts of the case observed that the dispute involved  had
           overtures of a civil dispute with criminal facets. This  is  not
           so in the instant case,  where  the  emphasis  is  more  on  the
           criminal intent of the Petitioners  than  on  the  civil  aspect
           involving the dues of the Bank in respect of which a  compromise
           was worked out.”




The Court distinguished  B.S. Joshi1 and  Nikhil  Merchant2    by  observing
that those cases  dealt with different fact situation.
41.         In Rajiv   Saxena  and  others  v.  State  (NCT  of  Delhi)  and
another[35],  this Court allowed  the   quashment  of  criminal  case  under
Sections 498-A and 496 read with Section 34 IPC  by a brief order.   It  was
observed  that  since  the  parties  had  settled  their  disputes  and  the
complainant agreed that the criminal  proceedings  need  not  be  continued,
the criminal proceedings could be quashed.
42.         In a very recent judgment decided by this Court in the month  of
July,  2012  in  Jayrajsinh  Digvijaysinh  Rana  v.  State  of  Gujarat  and
another[36], this Court was again concerned with the question  of  quashment
of an FIR alleging offences punishable under Sections  467,  468,  471,  420
and 120-B IPC. The High Court refused  to  quash  the  criminal  case  under
Section 482 of the Code.  The question for consideration was  that  inasmuch
as all those  offences,  except  Section  420  IPC,   were  non-compoundable
offences  under  Section 320 of the Code, whether it would  be  possible  to
quash the FIR by the High Court under Section 482 of the  Code  or  by  this
Court under  Article  136  of  the  Constitution  of  India.     The   Bench
elaborately considered the decision of this Court  in  Shiji  alias  Pappu33
and by invoking  Article  142  of  the  Constitution  quashed  the  criminal
proceedings.  It was held  as under:-

           “10. In the light of the principles mentioned above, inasmuch as
           Respondent No. 2  -  the  Complainant  has  filed  an  affidavit
           highlighting the stand taken by the Appellant  (Accused  No.  3)
           during the pendency of the appeal  before  this  Court  and  the
           terms of settlement as stated in the said affidavit, by applying
           the same analogy and in  order  to  do  complete  justice  under
           Article  142  of  the  Constitution,  we  accept  the  terms  of
           settlement insofar as the Appellant herein (Accused  No.  3)  is
           concerned.


           11.   In view of the same, we quash and set aside  the  impugned
           FIR No. 45/2011 registered with Sanand Police Station, Ahmedabad
           for offences punishable Under Sections 467, 468,  471,  420  and
           120-B of IPC  insofar  as  the  Appellant  (Accused  No.  3)  is
           concerned.  The  appeal  is  allowed  to  the  extent  mentioned
           above”.


43.         In Y. Suresh Babu v. State of A. P.[37]  decided  on  April  29,
1987, this Court allowed the compounding of an  offence  under  Section  326
IPC  even though such compounding was not permitted by Section  320  of  the
Code.     However, in Ram Lal and Anr. v. State of J & K[38]  ,  this  Court
observed that  Y. Suresh Babu37 was per  incuriam.   It  was  held  that  an
offence which law declares to be non-compoundable cannot  be  compounded  at
all even with the permission of the Court.

44.         Having surveyed the decisions of this Court  which  throw  light
on the question raised before us, two decisions, one given  by  the   Punjab
and Haryana High Court and the other by  Bombay High  Court  deserve  to  be
noticed.
45.         A five-Judge Bench of the  Punjab  and  Haryana  High  Court  in
Kulwinder Singh and others v. State of Punjab  and  another[39]  was  called
upon to determine, inter alia, the question whether the High Court  has  the
power under Section 482 of the Code to quash  the  criminal  proceedings  or
allow the compounding  of  the  offences   in  the  cases  which  have  been
specified as non-compoundable offences under the provisions of  Section  320
of the Code.  The five-Judge Bench referred to  quite  a  few  decisions  of
this Court including the decisions in Madhu Limaye12 ,  Bhajan  Lal30  ,  L.
Muniswamy11 , Simrikhia14, B.S.  Joshi1   and  Ram  Lal38   and  framed  the
following guidelines:

           “a. Cases  arising  from  matrimonial  discord,  even  if  other
           offences are introduced for aggravation of the case.


           b.  Cases  pertaining  to  property   disputes   between   close
           relations, which are predominantly civil in nature and they have
           a  genuine  or  belaboured  dimension  of  criminal   liability.
           Notwithstanding a touch of criminal  liability,  the  settlement
           would bring lasting  peace  and  harmony  to  larger  number  of
           people.


           c. Cases of dispute between old partners  or  business  concerns
           with dealings over a long period which are  predominantly  civil
           and are given or acquire a criminal dimension  but  the  parties
           are essentially  seeking  a  redressal  of  their  financial  or
           commercial claim.


           d. Minor offences as under Section 279, IPC may be permitted  to
           be compounded on the basis of legitimate settlement between  the
           parties. Yet another offence which remains non- compoundable  is
           Section  506  (II),  IPC,  which  is  punishable  with  7  years
           imprisonment. It is the  judicial  experience  that  an  offence
           under Section 506 IPC  in  most  cases  is  based  on  the  oral
           declaration with different shades of intention. Another  set  of
           offences, which ought to be liberally compounded,  are  Sections
           147 and 148, IPC, more particularly  where  other  offences  are
           compoundable. It may be added here  that  the  State  of  Madhya
           Pradesh vide M.P. Act No.  17  of  1999  (Section  3)  has  made
           Sections 506(II)  IPC,  147  IPC   and   148,  IPC  compoundable
           offences by amending the schedule under Section 320, Cr.P.C.


           e. The  offences  against  human  body  other  than  murder  and
           culpable homicide  where  the  victim  dies  in  the  course  of
           transaction would fall in the category where compounding may not
           be permitted. Heinous offences like highway robbery, dacoity  or
           a case involving clear-cut allegations of rape should also  fall
           in  the  prohibited  category.  Offences  committed  by   Public
           Servants purporting to act in that  capacity  as  also  offences
           against public servant while  the  victims  are  acting  in  the
           discharge of their duty must remain  non-compoundable.  Offences
           against the State enshrined in Chapter-VII  (relating  to  army,
           navy and air force) must remain non-compoundable.


           f. That as a broad guideline the  offences  against  human  body
           other than murder and culpable homicide may be permitted  to  be
           compounded when the court is in the position to record a finding
           that the settlement between the parties is voluntary and fair.


           While parting with this part, it appears necessary to  add  that
           the settlement or compromise must satisfy the conscience of  the
           court. The settlement must be just and fair besides  being  free
           from the undue pressure, the court must  examine  the  cases  of
           weaker and vulnerable victims with necessary caution."


           To conclude, it can safely be said that there can never  be  any
           hard and fast category which can be  prescribed  to  enable  the
           Court to exercise its power under Section 482 of the Cr.P.C. The
           only principle that can be laid down is the one which  has  been
           incorporated in the Section itself, i.e., "to prevent  abuse  of
           the process of any Court" or "to secure the ends of justice".

It was  further held as under :
           “23. No embargo, be in  the  shape  of  Section  320(9)  of  the
           Cr.P.C., or any other such curtailment,  can  whittle  down  the
           power under Section 482 of the Cr.P.C.


           25. The only inevitable conclusion from the above discussion  is
           that there is no statutory  bar  under  the  Cr.P.C.  which  can
           affect the inherent power  of  this  Court  under  Section  482.
           Further, the same cannot be limited to matrimonial  cases  alone
           and the Court has the wide power to quash the  proceedings  even
           in  non-compoundable  offences  notwithstanding  the  bar  under
           Section 320 of the Cr.P.C., in order to prevent the abuse of law
           and to secure the ends of justice. The power under  Section  482
           of the Cr.P.C. is to be exercised ex-debito Justitiae to prevent
           an abuse of process of Court. There can neither be an exhaustive
           list nor the defined para-meters  to  enable  a  High  Court  to
           invoke or exercise its inherent powers. It  will  always  depend
           upon the facts and circumstances of each case. The  power  under
           Section 482 of the Cr.P.C. has  no  limits.  However,  the  High
           Court will exercise  it  sparingly  and  with  utmost  care  and
           caution. The exercise of power has to be with circumspection and
           restraint. The Court is a vital and an extra-ordinary  effective
           instrument to maintain and control social order. The Courts play
           role of paramount importance in  achieving  peace,  harmony  and
           ever-lasting congeniality in society. Resolution of a dispute by
           way of a  compromise  between  two  warring  groups,  therefore,
           should attract the immediate and prompt  attention  of  a  Court
           which should endeavour to give full effect to  the  same  unless
           such compromise  is  abhorrent  to  lawful  composition  of  the
           society or would promote savagery.”

46.         A three-Judge Bench of the Bombay High Court in  Abasaheb  Yadav
Honmane v. State of Maharashtra[40] dealt with the  inherent  power  of  the
High Court under Section 482 of the  Code  vis-à-vis  the  express  bar  for
compounding of the non-compoundable offences in Section 320(9) of the  Code.
The High Court referred to various decisions of  this  Court  and  also  the
decisions of the various High Courts and then stated as follows :

            “The power of compounding on one hand and quashing of  criminal
           proceedings in exercise of inherent powers  on  the  other,  are
           incapable  of  being  treated  as  synonymous  or  even   inter-
           changeable in law. The conditions precedent and satisfaction  of
           criteria in each of these cases are distinct and different.  May
           be, the only aspect where  they  have  any  commonality  is  the
           result of exercise of such power in favour of  the  accused,  as
           acquittal is the end result in  both  these  cases.  Both  these
           powers are to be exercised  for  valid  grounds  and  with  some
           element of objectivity. Particularly, the power of quashing  the
           FIR or criminal proceedings by the Court by taking  recourse  to
           inherent powers is expected to be used sparingly  and  that  too
           without losing sight of impact of such  order  on  the  criminal
           justice delivery system. It may be obligatory upon the Court  to
           strike a balance between the nature of the offence and the  need
           to pass an order in exercise of inherent powers, as  the  object
           of criminal law is protection of public by  maintenance  of  law
           and order.”



47.         Section 320 of the Code articulates public  policy  with  regard
to the compounding of offences. It catalogues the offences punishable  under
IPC which may be compounded by the parties without permission of  the  Court
and the composition of certain offences with the permission  of  the  court.
The offences punishable under  the  special  statutes  are  not  covered  by
Section 320.   When an offence is compoundable under Section 320,  abatement
of such offence or an attempt to commit such offence or  where  the  accused
is liable under Section 34 or 149 of the IPC can also be compounded  in  the
same manner. A person who is under 18 years of age  or  is  an  idiot  or  a
lunatic is not competent to contract compounding of  offence  but  the  same
can be done on his behalf with the permission of the court.  If a person  is
otherwise  competent  to  compound   an   offence   is   dead,   his   legal
representatives may also compound the offence with  the  permission  of  the
court.  Where the accused has been  committed  for  trial  or  he  has  been
convicted and the appeal is pending, composition can only be done  with  the
leave of the court to which he has been committed or with the leave  of  the
appeal court, as the case may be.  The revisional court  is  also  competent
to allow any person to compound any offence who is  competent  to  compound.
The consequence of the  composition  of  an  offence  is  acquittal  of  the
accused. Sub-section (9) of Section 320 mandates that no  offence  shall  be
compounded except as provided by this Section. Obviously,  in  view  thereof
the composition of an offence has to be in accord with Section  320  and  in
no other manner.
48.         The question is with regard to the inherent power  of  the  High
Court in quashing the criminal  proceedings  against  an  offender  who  has
settled his dispute with the victim of the crime but the crime in  which  he
is allegedly involved is not compoundable under Section 320 of the Code.
49.         Section 482 of the Code, as its very  language  suggests,  saves
the inherent power of the High Court which it has by virtue of  it  being  a
superior court to prevent abuse of the process of any court or otherwise  to
secure the ends of justice. It begins  with  the  words,  ‘nothing  in  this
Code’ which means that the provision  is  an  overriding  provision.   These
words leave no manner of doubt that none  of  the  provisions  of  the  Code
limits or restricts the inherent power. The guideline for exercise  of  such
power is provided in Section 482  itself  i.e.,  to  prevent  abuse  of  the
process of any court or otherwise to secure the ends  of  justice.   As  has
been repeatedly stated that Section  482  confers  no  new  powers  on  High
Court; it merely safeguards  existing  inherent  powers  possessed  by  High
Court necessary to prevent abuse of the process of any Court  or  to  secure
the ends of justice.   It is equally well settled that the power is  not  to
be resorted to if there is specific provision in the Code  for  the  redress
of the grievance  of  an  aggrieved  party.  It  should  be  exercised  very
sparingly and it should not be exercised as against the express bar  of  law
engrafted in any other provision of the Code.
50.         In different situations, the inherent power may be exercised  in
different ways to achieve its ultimate objective. Formation  of  opinion  by
the High Court before it exercises  inherent  power  under  Section  482  on
either of the twin objectives, (i) to prevent abuse of the  process  of  any
court or (ii) to secure the ends of justice, is a sine qua non.
51.         In the very nature of  its  constitution,  it  is  the  judicial
obligation of the High Court to undo a wrong in course of administration  of
justice or to prevent continuation of unnecessary judicial process. This  is
founded on the legal maxim quando lex aliquid  alicui  concedit,  conceditur
et id sine qua res ipsa esse non  potest.   The  full  import  of  which  is
whenever anything is authorised, and especially if, as  a  matter  of  duty,
required to be done by law, it is found impossible to do that  thing  unless
something else not authorised in express terms be also  done,  may  also  be
done, then that something else will be supplied  by  necessary   intendment.
Ex debito justitiae is inbuilt in such exercise; the whole  idea  is  to  do
real, complete and substantial  justice  for  which  it  exists.  The  power
possessed by the High Court under  Section  482  of  the  Code  is  of  wide
amplitude but requires exercise with great caution and circumspection.
52.         It needs no emphasis that exercise  of  inherent  power  by  the
High Court would entirely depend on the  facts  and  circumstances  of  each
case. It is neither permissible nor  proper  for  the  court  to  provide  a
straitjacket formula  regulating  the  exercise  of  inherent  powers  under
Section 482. No precise and inflexible guidelines can also be provided.
53.         Quashing of offence or criminal proceedings  on  the  ground  of
settlement between  an  offender  and  victim  is  not  the  same  thing  as
compounding  of  offence.  They  are  different  and  not   interchangeable.
Strictly speaking, the power of compounding of offences  given  to  a  court
under Section 320 is materially different  from  the  quashing  of  criminal
proceedings by the High Court in exercise of its inherent  jurisdiction.  In
compounding of offences, power of a criminal court is circumscribed  by  the
provisions contained in Section 320 and  the  court  is  guided  solely  and
squarely thereby while, on the other hand, the formation of opinion  by  the
High Court for quashing  a   criminal  offence  or  criminal  proceeding  or
criminal complaint is guided by the material on record  as  to  whether  the
ends of justice would justify such exercise of power although  the  ultimate
consequence may be acquittal or dismissal of indictment.
54.         Where High Court quashes a criminal proceeding having regard  to
the fact that dispute between the  offender  and  victim  has  been  settled
although offences are not compoundable,  it  does  so  as  in  its  opinion,
continuation of  criminal proceedings will  be an exercise in  futility  and
justice in the case demands that the dispute between the parties is  put  to
an end and peace is restored;  securing  the  ends  of  justice  being   the
ultimate guiding factor. No  doubt,  crimes  are  acts  which  have  harmful
effect on the public and consist in wrong  doing  that  seriously  endangers
and threatens well-being of society and it is not safe to leave  the  crime-
doer only because he and the victim have settled  the  dispute  amicably  or
that the victim has been paid compensation, yet  certain  crimes  have  been
made compoundable in law, with or  without  permission  of  the  Court.   In
respect of serious offences  like  murder,  rape,  dacoity,  etc;  or  other
offences of mental depravity under IPC or offences of moral turpitude  under
special  statutes,  like  Prevention  of  Corruption  Act  or  the  offences
committed by public servants while working in that capacity, the  settlement
between offender and victim can have no legal sanction  at  all.    However,
certain offences which overwhelmingly and predominantly bear  civil  flavour
having arisen out of civil, mercantile, commercial,  financial,  partnership
or such  like  transactions  or  the  offences  arising  out  of  matrimony,
particularly relating to dowry, etc.  or  the   family  dispute,  where  the
wrong is basically to victim and the offender and victim  have  settled  all
disputes between them amicably, irrespective of the fact that such  offences
have not been made compoundable, the High Court may within the framework  of
its inherent power, quash the criminal proceeding or criminal  complaint  or
F.I.R if it is satisfied that on the  face  of  such  settlement,  there  is
hardly any likelihood of offender being convicted and by  not  quashing  the
criminal proceedings, justice shall be  casualty and  ends of justice  shall
be defeated. The above list is illustrative and not exhaustive.   Each  case
will depend on  its  own  facts  and  no  hard  and  fast  category  can  be
prescribed.
55.         B.S. Joshi1, Nikhil Merchant2, Manoj  Sharma3  and  Shiji  alias
Pappu33 do illustrate the principle  that  High  Court  may  quash  criminal
proceedings or FIR or complaint in exercise  of  its  inherent  power  under
Section 482 of the Code and Section 320 does not limit or affect the  powers
of the High Court under Section  482.  Can  it  be  said  that  by  quashing
criminal proceedings in B.S. Joshi1, Nikhil  Merchant2,  Manoj  Sharma3  and
Shiji  alias  Pappu33,  this  Court  has  compounded  the   non-compoundable
offences indirectly? We do not think so.  There does exist  the  distinction
between compounding of an offence  under  Section  320  and  quashing  of  a
criminal case by the High Court in exercise of inherent power under  Section
482.   The  two  powers  are  distinct  and  different   although   ultimate
consequence may be same viz., acquittal  of  the  accused  or  dismissal  of
indictment.
56.    We find no  incongruity  in  the  above  principle  of  law  and  the
decisions  of  this  Court  in  Simrikhia14,   Dharampal15,   Arun   Shankar
Shukla16, Ishwar Singh23, Rumi Dhar (Smt.).28 and Ashok  Sadarangani34.  The
principle propounded in Simrikhia14 that the inherent  jurisdiction  of  the
High Court cannot be invoked to override express bar provided in law  is  by
now well settled. In Dharampal15, the Court observed  the  same  thing  that
the inherent powers under Section 482 of the Code  cannot  be  utilized  for
exercising  powers  which  are  expressly  barred  by  the  Code.    Similar
statement of law is made in Arun Shankar Shukla16. In  Ishwar  Singh23,  the
accused was alleged to have committed an offence  punishable  under  Section
307, IPC and with reference to Section 320 of the Code,  it  was  held  that
the offence punishable under Section 307 IPC was  not  compoundable  offence
and there  was  express  bar  in  Section  320  that  no  offence  shall  be
compounded if it is not compoundable under the Code. In Rumi  Dhar  (Smt.)28
although the accused had paid the entire due amount as  per  the  settlement
with the bank in the matter of recovery before the Debts Recovery  Tribunal,
the accused was being  proceeded  with  for  commission  of  offences  under
Section 120-B/420/467/468/471 of the IPC along with the  bank  officers  who
were being prosecuted under Section 13(2) read with 13(1)(d)  of  Prevention
of Corruption Act. The  Court  refused  to  quash  the  charge  against  the
accused by holding that the Court would not quash a case involving  a  crime
against the society when a prima facie case has been made  out  against  the
accused for framing the charge. Ashok Sadarangani34  was again a case  where
the  accused  persons  were  charged  of  having  committed  offences  under
Sections 120-B, 465, 467, 468 and 471, IPC and  the  allegations  were  that
the accused  secured the credit facilities  by  submitting  forged  property
documents as collaterals and utilized such facilities in  a   dishonest  and
fraudulent manner by  opening  letters  of  credit  in  respect  of  foreign
supplies of goods, without actually bringing  any  goods  but  inducing  the
bank to negotiate the letters of credit in favour of foreign  suppliers  and
also by misusing the cash-credit  facility.  The  Court  was  alive  to  the
reference made in one of the present matters and also the decisions in  B.S.
Joshi1, Nikhil Merchant2 and  Manoj  Sharma3  and  it  was  held  that  B.S.
Joshi1, and Nikhil Merchant2 dealt with different factual situation  as  the
dispute involved had overtures  of  a  civil  dispute  but  the  case  under
consideration in Ashok Sadarangani34 was more on the  criminal  intent  than
on a civil aspect.  The decision in Ashok Sadarangani34  supports  the  view
that the criminal matters involving overtures of a civil dispute stand on  a
different footing.
57.         The position that emerges  from  the  above  discussion  can  be
summarised thus:  the power  of  the  High  Court  in  quashing  a  criminal
proceeding or FIR or complaint in exercise of its inherent  jurisdiction  is
distinct and different  from  the  power  given  to  a  criminal  court  for
compounding the offences under Section 320 of the Code.  Inherent  power  is
of wide plenitude with no statutory limitation but it has  to  be  exercised
in accord with the guideline engrafted in such power viz; (i) to secure  the
ends of justice or (ii) to prevent  abuse of the process of  any  Court.  In
what cases power to quash the criminal proceeding or complaint or F.I.R  may
be exercised where the offender and victim have settled their dispute  would
depend on the facts and circumstances of each case and no  category  can  be
prescribed. However, before exercise of such  power,  the  High  Court  must
have due regard to the nature and gravity of the crime. Heinous and  serious
offences of mental depravity or offences like murder,  rape,  dacoity,  etc.
cannot be fittingly quashed even though the victim or  victim’s  family  and
the offender have settled the dispute. Such  offences  are  not  private  in
nature and  have  serious  impact  on  society.  Similarly,  any  compromise
between the victim and offender  in relation to the offences  under  special
statutes like Prevention of Corruption Act  or  the  offences  committed  by
public servants while working in that capacity etc; cannot provide  for  any
basis for quashing criminal proceedings involving  such  offences.  But  the
criminal cases having  overwhelmingly  and  pre-dominatingly  civil  flavour
stand on different footing for the purposes of  quashing,  particularly  the
offences arising from commercial, financial, mercantile, civil,  partnership
or such like transactions or the offences arising out of matrimony  relating
to dowry, etc. or the family disputes where the wrong is  basically  private
or personal in nature and the parties have resolved  their  entire  dispute.
In this category of cases, High Court may quash criminal proceedings  if  in
its view, because of the compromise between the  offender  and  victim,  the
possibility of conviction is remote and bleak and continuation  of  criminal
case would put  accused  to  great  oppression  and  prejudice  and  extreme
injustice would be caused to him by not quashing the criminal  case  despite
full and complete settlement  and  compromise  with  the  victim.  In  other
words, the High Court must consider whether it would be unfair  or  contrary
to the interest of justice to  continue  with  the  criminal  proceeding  or
continuation of  the  criminal  proceeding  would  tantamount  to  abuse  of
process of law despite settlement and  compromise  between  the  victim  and
wrongdoer and whether to secure the ends of justice, it is appropriate  that
criminal case is put to an end and if the answer to  the  above  question(s)
is in affirmative, the High Court shall be well within its  jurisdiction  to
quash the criminal proceeding.
58.         In view of the above,  it  cannot  be  said  that  B.S.  Joshi1,
Nikhil Merchant2  and Manoj Sharma3  were not correctly decided.  We  answer
the reference accordingly. Let  these  matters  be  now  listed  before  the
concerned Bench(es).
                                                        …………………….J.
                                                     (R.M. Lodha)


                                                                 …………………….J.
                               (Anil R. Dave)


                                    …….............…………………….J.     (Sudhansu
                                    Jyoti Mukhopadhaya)
NEW DELHI.
SEPTEMBER 24, 2012.
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[1]     (2003) 4 SCC 675
[2]     (2008) 9 SCC 677
[3]     (2008) 16 SCC 1
[4]     (2011) 6 SCC 216
[5]     (2009) 11 SCC 424
[6]     (1945) 47 Bom. L.R. 245
[7]     AIR 1959 SC 542
[8]     AIR 1945 PC 94
[9]     AIR 1964 SC 703
[10]    1966 (Suppl) SCR 477
[11]    (1977) 2 SCC 699
[12]    (1977) 4 SCC 551
[13]    (1980) 1 SCC 43
[14]    (1990) 2 SCC 437
[15]    1993 Crl. L.J. 1049
[16]    AIR 1999 SC 2554
[17]    (2000) 2 SCC 636
[18]    (2002) 3 SCC 89
[19]    (2009) 6 SCC 351
[20]    (2009) 7 SCC 495
[21]    (2011) 5 SCC 708
[22]    (2008) 4 SCC 582
[23]    (2008) 15 SCC 667
[24]    (2006) 9 SCC 255
[25]    (2001) 10 SCC 504
[26]    (2008) 15 SCC 671
[27]    1990 (supp) SCC 681
[28]    (2009) 6 SCC 364
[29]    (1996) 5 SCC 591
[30]    1992 Supp (1) SCC 335
[31]    1992 Supp (1) SCC 222
[32]    (1992) 4 SCC 305
[33]   (2011) 10  SCC 705
[34]    JT 2012  (3) SC  469
[35]   (2012) 5 SCC 627
[36]    JT 2012 (6) SC 504
[37]   (2005) 1 SCC 347
[38]   (1999 2 SCC 213
[39]    (2007) 4 CTC 769
[40]     2008 (2) Mh.L.J.856

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