Wednesday, 12 December 2012

guidelines by supreme court on compounding and quashing of criminal case


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. 

Gian Singh Vs. State of Punjab 

SUPREME COURT OF INDIA 
(R.M. LODHA, ANIL R. DAVE & SUDHANSU JYOTI MUKHOPADHAYA, JJ.)


Decided on 24-09-2012.  
Quashing of FIR – Cheating – Compromise  

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 [(2003) 4 SCC 675], Nikhil Merchant v. Central Bureau of Investigation and 
another [(2008) 9 SCC 677] and Manoj Sharma v. State and others [(2008) 16 SCC 1] 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 
Offence   Section of the Indian Penal 
Code applicable  
Person by whom 
offence may be 
compounded  

(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 
Offence     Section of the Indian Penal Code 
applicable        
Person by whom offence may 
be compounded                 
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 2012 STPL(Web) 521 SC                                                                                                              4 
Gian Singh Vs. State of Punjab 
Supreme Court Judgements @ www.stpl-india.in
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 noncompoundable 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 [(2011) 6 SCC 216] 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 [(2009) 11 SCC 424] 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 [(1945) 47 Bom. L.R. 245], 
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 [AIR 1959 SC 542], 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 [AIR 1945 PC 94] was expressly accepted by this Court in 
State of Uttar Pradesh. v. Mohammad Naim [AIR 1964 SC 703] . 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 [1966 (Suppl) SCR 477], 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 [(1977) 2 SCC 699], 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 [(1977) 
4 SCC 551], 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 [(1980) 1 SCC 43], 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 [(1990) 2 SCC 
437], 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 [1993 Crl. L.J. 1049], 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. [AIR 1999 SC 2554] , a twoJudge 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 [(2000) 2 SCC 636], 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 
[(2002) 3 SCC 89] 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 [(2009) 6 SCC 
351], 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 [(2009) 7 SCC 495], 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 [(2011) 5 SCC 708], 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 [(2008) 4 SCC 582], 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 [(2008) 15 SCC 667], 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 [(2006) 9 SCC 255], Murugesan v. Ganapathy Velar [(2001) 10 SCC 504], 
Ishwarlal v. State of M.P. [(2008) 15 SCC 671] and Mahesh Chand & another v. State of 
Rajasthan [1990 (supp) SCC 681] 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 

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