eCourtsIndia

Rajeeb Kothari vs. The State Of West Bengal

Court:Supreme Court of India
Judge:Hon'ble Kurian Joseph, Sanjay Kishan Kaul
Case Status:Unknown Status
Order Date:16 Nov 2018
CNR:SCIN010267682018

AI Summary

In a landmark criminal appeal, the Supreme Court of India quashed criminal proceedings against Rajeeb Kothari in a case involving charges of criminal breach of trust, cheating, and criminal conspiracy, after the parties settled their disputes outside court. This decision underscores the judiciary's recognition of settlement as a valid ground for terminating criminal proceedings when the underlying dispute is resolved.

Ratio Decidendi:
When parties to a criminal case arising from a civil dispute have settled their differences outside of court, the criminal proceedings should be quashed in the interest of justice, as the trial court will have to consider the settlement in any case, and the continuation of proceedings serves no purpose.
Obiter Dicta:
The Court's observation that the State's contention regarding the trial being in progress cannot be appreciated suggests that the progress of trial is not a valid consideration when the underlying dispute has been resolved through settlement.

Case Identifiers

Primary Case No:Criminal Appeal No. 1408 of 2018
Case Type:Criminal Appeal
Case Sub-Type:Special Leave Petition - Criminal - Quashing of Criminal Proceedings
Secondary Case Numbers:Special Leave Petition (Crl.) No. 6082 of 2018, CRR No. 3662/2015
Order Date:2018-11-16
Filing Year:2018
Court:Supreme Court of India
Bench:Division Bench
Judges:Hon'ble Kurian Joseph, Hon'ble Hemant Gupta

Petitioner's Counsel

Shreyans Singhvi
Advocate - Appeared
Ekta Mehta
Advocate - Appeared
Jaikriti S. Jadeja
Advocate on Record - Appeared

Respondent's Counsel

Suhaan Mukerji
Advocate - Appeared
Astha Sharma
Advocate - Appeared
Amit Verma
Advocate - Appeared
Kajal Dalal
Advocate - Appeared
Dimple Nagpal
Advocate - Appeared
PLR Chambers and Co.
Law Firm - Appeared

Advocates on Record

Jaikriti S. Jadeja

eCourtsIndia AITM

Brief Facts Summary

Rajeeb Kothari was chargesheeted under Sections 406, 420, and 120B IPC in GR Case No. 634 of 2001 pending before the Metropolitan Magistrate, 4th Court, Kolkata. The case arose from a dispute between Kothari and Soumendranath Lahiri. The parties subsequently settled their disputes outside of court. Kothari filed a petition in the High Court of Calcutta (CRR No. 3662/2015) seeking quashing of the criminal proceedings under Section 482 Cr.P.C., but the High Court declined to exercise its jurisdiction by order dated 27-04-2018. Kothari then filed a Special Leave Petition in the Supreme Court (SLP No. 6082/2018) on 23-07-2018. The Supreme Court granted leave and heard the matter on 10-08-2018 and 16-11-2018. Despite service of notice, the second respondent (de facto complainant) did not appear. The State argued that the trial was in progress. The Supreme Court found that the parties had settled their disputes and quashed the proceedings.

Timeline of Events

2001

GR Case No. 634 of 2001 filed against Rajeeb Kothari for criminal breach of trust, cheating, and criminal conspiracy

2015

CRR No. 3662/2015 filed in High Court of Calcutta seeking quashing of criminal proceedings

2018-04-27

High Court of Calcutta declined to exercise jurisdiction under Section 482 Cr.P.C. and dismissed the petition

2018-07-23

Special Leave Petition No. 6082/2018 filed in Supreme Court of India

2018-08-10

First hearing in Supreme Court; notice issued; stay of operation and implementation of impugned judgment granted

2018-11-16

Final hearing in Supreme Court; leave granted; appeal allowed; proceedings quashed

Key Factual Findings

The appellant was chargesheeted under Sections 406, 420, and 120B IPC

Source: Recited from Petitioner Pleading

The parties have settled their disputes outside of court

Source: Recited from Petitioner Pleading

Despite service of notice, the second respondent (de facto complainant) did not appear

Source: Current Court Finding

The trial was in progress at the time of the Supreme Court hearing

Source: Recited from Respondent Pleading

The Supreme Court had granted stay of proceedings by order dated 10-08-2018

Source: Current Court Finding

Primary Legal Issues

1.Whether the High Court was justified in declining to exercise its jurisdiction under Section 482 Cr.P.C. to quash criminal proceedings
2.Whether criminal proceedings should be quashed when the parties have settled their disputes outside of court
3.Whether the continuation of criminal trial is necessary when the underlying civil dispute has been resolved through settlement

Secondary Legal Issues

1.The effect of settlement between parties on the continuation of criminal proceedings
2.The discretionary power of courts under Section 482 Cr.P.C. to quash proceedings in the interest of justice
3.The relevance of trial progress as a factor in deciding whether to quash proceedings

Questions of Law

Can criminal proceedings be quashed under Section 482 Cr.P.C. when the parties have settled their disputes? - ANSWERED: Yes, the Supreme Court held that when parties have settled their disputes outside court, there is no need for criminal proceedings to continue.
Is the progress of trial a valid reason to continue criminal proceedings despite settlement? - ANSWERED: No, the Supreme Court rejected the State's contention that the trial being in progress was a reason to continue the proceedings.

Statutes Applied

Indian Penal Code
Sections 406, 420, 120B
The appellant was chargesheeted under these sections for criminal breach of trust, cheating, and criminal conspiracy. The Supreme Court found that since the parties had settled their disputes, there was no need for the criminal proceedings to continue.
Criminal Procedure Code
Section 482
The High Court's jurisdiction to quash criminal proceedings in the interest of justice. The Supreme Court exercised this power to quash the proceedings after finding that the parties had settled their disputes.

Petitioner's Arguments

The appellant Rajeeb Kothari argued that: (1) The disputes between the parties have been settled outside of court; (2) The High Court erred in declining to exercise its jurisdiction under Section 482 Cr.P.C. to quash the proceedings; (3) Since the underlying civil dispute has been resolved through settlement, there is no justification for continuing the criminal trial; (4) The trial court will have to consider the settlement in any case, making the continuation of proceedings unnecessary.

Respondent's Arguments

The State of West Bengal argued that: (1) The trial is already in progress and should continue; (2) The progress of the trial is a valid reason to not quash the proceedings; (3) The criminal proceedings should not be quashed merely because the parties have settled their civil disputes.

Court's Reasoning

The Supreme Court reasoned as follows: (1) The appellant had approached the Court because the High Court declined to exercise its jurisdiction under Section 482 Cr.P.C.; (2) Despite service of notice, the second respondent (de facto complainant) did not appear, indicating lack of interest in pursuing the case; (3) The State's contention that the trial is in progress cannot be appreciated as a valid reason to continue proceedings when the parties have settled; (4) The Court had already granted stay of proceedings on 10-08-2018, indicating the seriousness of the settlement; (5) The charges were under Sections 406, 420, and 120B IPC, which are offences arising from the civil dispute between the parties; (6) Since the parties have settled their disputes outside court, the trial court will have to take the settlement into consideration in any case; (7) Therefore, there is no need for the criminal proceedings to continue, and the appeal is allowed.

Statutory Interpretation Method:
Purposive Interpretation - The Court interpreted Section 482 Cr.P.C. in a manner that serves the interest of justice and recognizes the validity of settlement between partiesPractical Approach - The Court took a practical view that if the parties have settled, continuing the trial would be futile
Judicial Philosophy Indicators:
  • Emphasis on Settlement and Alternative Dispute Resolution - The Court recognized and encouraged settlement of disputes outside court
  • Pragmatic Approach to Justice - The Court focused on practical outcomes rather than procedural technicalities
  • Recognition of Party Autonomy - The Court respected the parties' decision to settle their dispute
Order Nature:Substantive
Disposition Status:Disposed
Disposition Outcome:Allowed

Impugned Orders

High Court of Calcutta
Case: CRR No. 3662/2015
Date: 2018-04-27

Specific Directions

  1. 1.Proceedings in GR Case No. 634 of 2001 on the file of Metropolitan Magistrate, 4th Court, Kolkata are quashed
  2. 2.Stay of operation and implementation of the impugned judgment granted on 10-08-2018

Precedential Assessment

Binding (SC)

This is a judgment of the Supreme Court of India, which is the highest court in the country. It establishes binding precedent for all lower courts in India on the issue of quashing criminal proceedings when parties have settled their disputes.

Tips for Legal Practice

1.Settlement between parties in criminal cases arising from civil disputes is a valid ground for quashing proceedings under Section 482 Cr.P.C., even if the trial is in progress
2.The absence or non-appearance of the de facto complainant in court proceedings can strengthen the case for quashing criminal proceedings when settlement has been reached
3.Courts should recognize and encourage settlement of disputes outside court, particularly in cases where the criminal charges arise from underlying civil disputes between the parties

Legal Tags

Quashing of criminal proceedings under Section 482 Criminal Procedure Code IndiaSettlement of disputes and termination of criminal proceedings Supreme CourtCriminal breach of trust cheating conspiracy charges quashed after settlementDiscretionary power of courts to quash proceedings in interest of justiceEffect of settlement between parties on continuation of criminal trialDe facto complainant non appearance and quashing of criminal proceedingsCriminal proceedings arising from civil disputes and settlement implicationsStay of criminal trial proceedings granted pending appeal Supreme CourtMetropolitan Magistrate jurisdiction and quashing of proceedings by Supreme CourtCriminal Procedure Code Section 482 jurisdiction and settlement recognition

Disclaimer: eCourtsIndia (ECI) is not a lawyer and this analysis is generated by ECI AI, it might make mistakes. This is not a legal advice. Please consult with a qualified legal professional for matters requiring legal expertise.

Order Issued After Hearing

Purpose:

Case Registered

Listed On:

16 Nov 2018

Order Text

NON-REPORTABLE

IN THE SUPREME COURT OF INDIA CRIMINAL APPELLATE JURISDICTION

CRIMINAL APPEAL NO(S). 1408 OF 2018 [@ SPECIAL LEAVE PETITION (CRL.) NO. 6082 OF 2018]

RAJEEB KOTHARI Appellant (s)

VERSUS

THE STATE OF WEST BENGAL & ANR. Respondent(s)

J U D G M E N T

KURIAN, J.

Digitally signed by JAYANT KUMAR ARORA Date: 2018.12.24 16:40:06 IST Reason:

Signature Not Verified

1. Leave granted.

2. The appellant approached this Court since the High Court declined to exercise its jurisdiction under Section 482 Cr.P.C. The appellant sought quashing of proceedings in GR Case No. 634 of 2001 pending on the file of Metropolitan Magistrate, 4th Court, Kolkata. It is the case of the appellant that the disputes between the parties have been settled.

3. Despite service of notice, the second respondent, who is the de-facto complainant, is not present. There is no appearance as well. The learned counsel appearing for the State, however, points out that the trial is in progress. We are afraid, this contention cannot be appreciated. This Court had granted stay of the proceedings by order dated 10.08.2018.

4. We find that the appellant was chargesheeted under Sections 406, 420 and 120B IPC. Now that the parties have settled their disputes outside the court, we do not find that there is any need for the criminal proceedings to continue any further since in any case, the trial court will have to take into consideration the settlement. The appeal is, hence, allowed.

5. Proceedings in GR Case No. 634 of 2001 on the file of Metropolitan Magistrate, 4th Court, Kolkata are quashed.

.......................J. [ KURIAN JOSEPH ]

.......................J. [ HEMANT GUPTA ]

New Delhi; November 16, 2018.

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