Facts Of The Case:
The case originated from a dispute over the sale of a plot of land in Burari, Delhi. Respondent No. 2, while searching for land to build a house, was introduced by the appellant, Mool Chand, who claimed to be a reputed real estate agent. The appellant represented that he had an encumbrance-free plot suitable for the complainant, owned by his associate, accused No. 2, who needed urgent funds. Consequently, respondent No. 2 agreed to purchase the plot for Rs. 21,66,000/-. On 04.08.2021, a bayana agreement was executed, and an initial payment of Rs. 2,00,000/- was made to accused No. 2. However, when respondent No. 2 visited the site after paying the full consideration, he discovered that the appellant and the other accused had allegedly sold the same plot to someone else. This led to the registration of FIR No. 278 of 2022 on 16.03.2022 under various sections of the IPC, including cheating and forgery. A chargesheet was subsequently filed against the appellant and three others. Later, on 08.11.2024, the appellant and the complainants entered into a Memorandum of Understanding (MoU) to settle the dispute amicably. Under the MoU, the appellant agreed to pay Rs. 10,00,000/- in installments as full settlement. The appellant complied with the terms, paying the entire amount, after which the complainants filed affidavits supporting the quashing of the FIR against him. Despite this, the High Court dismissed the quashing petition, prompting the appellant to appeal to the Supreme Court.
Procedural History:
The procedural journey of this case began with the registration of FIR No. 278 of 2022 on March 16, 2022, at P.S. Burari, Delhi, based on allegations of cheating and forgery against the appellant and other accused persons. Following investigation, chargesheet No. 13 of 2022 was filed on June 16, 2022, against the appellant and three others under Sections 419, 420, 467, 468, 471, and 120B of the Indian Penal Code. After the parties entered into a Memorandum of Understanding on November 8, 2024, settling their dispute, the appellant filed Crl. M.C. No. 3650 of 2025 before the Delhi High Court under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, seeking quashing of the FIR. The matter was referred to the Joint Registrar, who on May 22, 2025, recorded the statements of the parties and confirmed that the settlement was genuine and voluntarily arrived at without coercion. However, by order dated May 30, 2025, the High Court dismissed the quashing petition, observing that there were other accused persons in the FIR who were not parties to the settlement petition, and that the complainant had not yet recovered the money. Aggrieved by this dismissal, the appellant approached the Supreme Court by filing Special Leave Petition (Crl.) No. 13908 of 2025, which was granted leave and converted into Criminal Appeal No. 5350 of 2025. The Supreme Court heard the matter and delivered its judgment on November 28, 2025, allowing the appeal and quashing the proceedings against the appellant while directing that the prosecution against other accused continue.
READ ALSO:Can’t Terminate Compassionate Appointment for Failing Exam? Supreme Court Orders Lower Post Instead
Court Observation:
The Supreme Court made several significant observations while allowing the appeal and quashing the proceedings against the appellant. The Court observed that the dispute between the appellant and respondent Nos. 2 and 3 was essentially civil in nature, which had culminated in a Memorandum of Understanding executed on November 8, 2024. The Court took note that the Joint Registrar of the Delhi High Court had already recorded the statements of the parties and confirmed that the settlement was genuine and arrived at without any force, coercion, undue influence, or pressure. The Court further observed that the appellant had fully complied with the terms of the settlement by paying the entire sum of Rs. 10,00,000/- to respondent Nos. 2 and 3 in installments, and the complainants had filed affidavits supporting the quashing petition. The Court observed that by exercising power under Article 142 of the Constitution of India, the criminal proceedings against the appellant alone were liable to be quashed to secure complete justice between the parties. Importantly, the Court observed that quashing of proceedings against the appellant would not be an impediment for the State to prosecute the other accused in accordance with law. The Court also observed, based on the assurance given by learned counsel for respondent Nos. 2 and 3, that the complainants would assist the prosecution in prosecuting the remaining accused persons, thereby addressing the State’s apprehension regarding non-cooperation by the complainant in the ongoing trial against other accused.
Final Decision & Judgement:
The Supreme Court delivered its final judgment on November 28, 2025, allowing the appeal filed by Mool Chand and setting aside the impugned order dated May 30, 2025, passed by the Delhi High Court. Their Lordships granted leave and exercised plenary power under Article 142 of the Constitution of India to quash the criminal proceedings against the appellant herein only, including FIR No. 278 of 2022 registered with P.S. Burari and all consequential proceedings arising therefrom. The Court explicitly clarified that such quashing would not operate as an impediment for the State to continue prosecuting the other accused persons in accordance with law. The Court further directed that respondent Nos. 2 and 3 shall assist the prosecution in prosecuting the remaining accused, thereby ensuring that the settlement between private parties does not prejudice the criminal justice process against others. The judgment was pronounced by a bench comprising Justice B.V. Nagarathna and Justice R. Mahadevan, who also directed that all pending applications, if any, shall stand disposed of. The appeal was thus allowed in the aforesaid terms, bringing finality to the proceedings as against the appellant while preserving the integrity of the ongoing prosecution against the other accused.
Case Details:
Case Title: Mool Chand versus State Govt. of NCT of Delhi & Others Citation: 2025 INSC 1448 Criminal Appeal No.: Criminal Appeal No. 5350 of 2025 Date of Judgment: November 28, 2025 Judges/Bench: Justice B.V. Nagarathna and Justice R. Mahadevan
Download The Judgement Here