[Cites 10, Cited by 0]
Gujarat High Court
Keyur Pravinchandra Shah vs State Of Gujarat on 20 April, 2026
NEUTRAL CITATION
R/CR.MA/19513/2024 ORDER DATED: 20/04/2026
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/CRIMINAL MISC.APPLICATION (FOR QUASHING & SET ASIDE
FIR/ORDER) NO. 19513 of 2024
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KEYUR PRAVINCHANDRA SHAH & ANR.
Versus
STATE OF GUJARAT & ANR.
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Appearance:
MR ANKIT SHAH(6371) for the Applicant(s) No. 1,2
MR NANDISH Y CHUDGAR(2011) for the Respondent(s) No. 2
MR TIRTHRAJ PANDYA, APP for the Respondent(s) No. 1
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CORAM:HONOURABLE MR. JUSTICE VIMAL K. VYAS
Date : 20/04/2026
ORAL ORDER
1. By way of filing the present application under Section 482
of the Code of Criminal Procedure, 1973, the applicants-
accused have prayed to quash and set-aside the First
Information Report No.1 of 2005 registered with the CID Crime
Police Station, District - Gandhinagar, for the offences
punishable under Sections 406, 409, 420, 467, 468, 471 and
120(B) of the Indian Penal Code, 1860, as well as the
proceedings of the Special Case (ACB) No.28 of 2017 pending
before the Special Sessions Judge, City Sessions Court,
Navrangpura, District - Ahmedabad, so also all other
consequential proceedings arising pursuant thereto.
NEUTRAL CITATION
R/CR.MA/19513/2024 ORDER DATED: 20/04/2026
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2. The present application was filed on merits, however,
during the pendency of the matter, the dispute has been
resolved between the parties, since both the applicants have
deposited the due amount as per the One Time Settlement
proposal offered by the respondent - Bank.
3. Learned advocate Mr. Nandish Chudgar appearing for the
respondent no.2 - complainant has submitted the affidavit
dated 20.04.2026 filed by the authorized officer of the
respondent - Bank, namely, Mr. Nurmohmed Suma s/o
Bhadurbhai Suma. The same is ordered to be taken on record.
4. Today, when the matter is called out, the authorized
officer of the respondent - Bank, namely, Mr. Nurmohmed
Suma s/o Bhadurbhai Suma, is personally present before this
Court and has produced his identity proof, which is ordered to
be taken on record. In the said affidavit, he has categorically
stated that he has received his dues of Rs.75,00,000/- and the
dispute has been amicably resolved with the applicants. The
complainant has further stated that he has no grievance or ill-
will against the applicants.
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R/CR.MA/19513/2024 ORDER DATED: 20/04/2026
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5. Considering the issue involved in the present application
as well as considering the fact that the dispute has been
amicably resolved with the applicant, with the consent of the
learned advocates appearing for the respective parties, the
present application is taken up for final disposal.
6. RULE returnable forthwith. Learned APP Mr. Tirthraj
Pandya waives service of notice of rule for and on behalf of the
respondent no.1 - State and learned advocate Mr. Nandish
Chudgar waives service of notice of rule for and on behalf of
the respondent no.2 - complainant.
7. The authorized officer of the respondent - Bank, who is
personally present before this Court, has categorically stated
that the dispute has been amicably resolved between the
parties and he has no objection if the application is allowed
and the impugned FIR as well as the proceedings of the special
case are quashed and set-aside.
8. The relevant paragraphs of the affidavit filed by the
authorized officer of the respondent - Bank, namely, Mr.
Nurmohmed Suma s/o Bhadurbhai Suma, read thus :
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R/CR.MA/19513/2024 ORDER DATED: 20/04/2026
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"4. I state on behalf of the Respondent Bank on affidavit dated 18.02.2026
was filed in furtherance thereto. I state that the Petitioner No. 1 was also a
Director of M/s Gayatri Intermediate Pvt. Ltd. The Directors of Gayatri
Intermediate Pvt. Ltd. were (1) Pravinchandra Nathalal Shah (2) Keyur
Pravinchandra Shah (3) Manish Pravinchandra Shah. The said company
was granted of term loan of Rs. 1 crore. The said company i.e. the
borrower had hot made the payment in time. However, the said company
i.e. Gayatri Intermediate Pvt. Ltd. enter into a one-time settlement under
the compromise settlement scheme known as FSS-2016 and made the
payment of the settlement amount to the bank. Accordingly, Respondent
No. 2 issued a "nil certificate" in favour of M/s Gayatri Intermediate Pvt.
Ltd. on 13.06.2019. Annexed herewith and marked as Annexure-R/3 is a
copy of said certificate dated 13.06.2019.
5. So far as Petitioner No. 1 is concerned. He was also Director in another
company known as Shri Siddhi Intermediate Pvt. Ltd. So far as the
petitioner No. 1 is concerned. The outstanding dues of Petitioner No. 1
has been paid under the settlement. Petitioner No. 1 has paid Rs.
75,00,000/- on 21.01.2024 and accordingly, the Respondent No. 2 bank
has issued a "Nil Outstanding Certificate" on 12.02.2024. A copy of such
certificate dated 12.02.2024 is annexed herewith and marked as
Annexure-R/4."
9. Thus, it appears from the aforesaid that to continue
further with the proceedings pursuant to the impugned FIR
as well as the special case would be a futile exercise and
the same would amount to abuse of process of law.
10. Having heard learned advocates appearing for the
respective parties as well as considering the facts and
circumstances arising out of the present application and taking
into consideration the decisions rendered in the cases of Gian
Singh vs. State of Punjab & Another, reported in (2012) 10
SCC 303, Madan Mohan Abbot vs. State of Punjab,
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R/CR.MA/19513/2024 ORDER DATED: 20/04/2026
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reported in (2008) 4 SCC 582, Nikhil Merchant vs. Central
Bureau of Investigation & Another, reported in (2009) 1
GLH 31, Manoj Sharma vs. State & Others, reported in
(2009) 1 GLH 190, and Narinder Singh & Others vs. State
of Punjab & Another, reported in (2014) 2 Crime 67 (SC) as
well as State of Haryana vs. Bhajanlal, reported in AIR
1992 SC 604, it appears that continuing further with the
criminal proceedings pursuant to the impugned FIR as well as
the special case would be a futile exercise and the same would
amount to abuse of process of law. Hence, to secure the ends
of justice, the impugned FIR as well as the proceedings of the
special case, so also all other consequential proceedings
arising pursuant thereto are required to be quashed and set-
aside in exercise of the powers conferred under Section 528 of
the Bharatiya Nagarik Suraksha Sanhita, 2023.
11. In the result, the application is allowed. The proceedings
of the First Information Report No. 1 of 2005 registered with
the CID Crime Police Station, District - Gandhinagar, for the
offences punishable under Sections 406, 409, 420, 467, 468,
471 and 120(B) of the Indian Penal Code, 1860, as well as the
proceedings of the Special Case (ACB) No.28 of 2017 pending
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R/CR.MA/19513/2024 ORDER DATED: 20/04/2026
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before the Special Sessions Judge, City Sessions Court,
Navrangpura, District - Ahmedabad, so also all other
consequential proceedings arising pursuant thereto, are
hereby ordered to be quashed and set-aside qua the present
applicants.
12. Rule made absolute. Direct service is permitted.
(VIMAL K. VYAS, J)
DEEPAK GEHLOT
