The Supreme Court has quashed a cheating case registered under Section 318 of the Bharatiya Nyaya Sanhita (BNS) after the parties amicably resolved their commercial dispute through mediation conducted at the Supreme Court Mediation Centre. The Court also directed closure of all connected civil and criminal proceedings pending between the parties.
A Bench of Justice K.V. Viswanathan and Justice Vipul M. Pancholiwas hearing a special leave petition challenging a Madhya Pradesh High Court order refusing him anticipatory bail in connection with FIR registered at Sailana Police Station, Ratlam, for the offence under Section 318 BNS.
During the proceedings, the Supreme Court had referred the parties to mediation after granting interim protection. The mediation process culminated in a settlement agreement dated February 25, 2026, under which the parties agreed to resolve all disputes arising from commercial agreements executed in March 2021.
As part of the settlement, the petitioner represented through Advocates Abhikalp Pratap Singh and Manu Maheshwari, agreed to pay a total sum of ?1.80 crore in full and final settlement of all claims, counterclaims, damages, interest, litigation costs and other liabilities arising from the underlying commercial transactions. The complainant agreed to cooperate in quashing the FIR and all criminal proceedings connected with the dispute.
Invoking its powers under Article 142 of the Constitution, the Court quashed the FIR and ordered that all related proceedings, including civil suits, criminal complaints, writ proceedings and police complaints arising from the same cause of action, shall stand terminated in terms of the settlement. The Court observed that the courts concerned and authorities may record closure of the proceedings upon production of its order.
Counsel appearing for the complainant informed the Court that the entire settlement amount had been received and that no grievance survived against the accused. Recording the parties’ undertaking to abide by the settlement terms, the Court disposed of the special leave petition.
The Bench also appreciated the reasonable approach adopted by the parties and their counsel, and acknowledged the role of mediator Ms. Rubina Javed in facilitating the settlement.
