Manipulation of documents to secure loans are not merely private disputes : FIR cannot be quashed based on a compromise

Himachal Pradesh High Court Upholds FIR in Economic Offence Case. Court Rules Forgery and Fraud Are Societal Wrongs, Not Mere Private Disputes

In a significant judgment, the Himachal Pradesh High Court has refused to quash an FIR against Disha Shukla, who is accused of committing forgery and fraud to secure a vehicle loan from Punjab and Sindh Bank. The court emphasized that such economic offences are not mere private disputes but societal wrongs that impact the financial health of institutions. The judgment was delivered by Justice Rakesh Kainthla on October 17, 2025.

The case revolves around allegations that Disha Shukla and her accomplice Ajay Dutt submitted forged documents, including a proforma invoice, to obtain a loan of Rs. 3,67,000 from the bank. Despite settling the civil suit filed by the bank and repaying the amount, the court held that the continuation of criminal proceedings is necessary to address the societal impact of the alleged offences.

The court highlighted the serious nature of the allegations, which include forgery and fraud under Sections 420, 467, 468, and 471 of the Indian Penal Code. It noted that economic offences cannot be quashed merely based on a compromise between the parties, as they have implications that extend beyond the private interests of the involved parties.

Justice Kainthla cited several Supreme Court judgments to reinforce the decision, emphasizing that the inherent powers of the High Court under Section 482 of the Criminal Procedure Code should not be used to quash proceedings in cases involving societal wrongs. The court also pointed out that such offences have a significant impact on the community and cannot be categorized as having a predominantly civil character.

The judgment reiterates the judiciary's stance on treating economic offences with the seriousness they deserve, acknowledging their potential to harm the financial integrity of institutions and society at large. The petition to quash the FIR was subsequently dismissed, underscoring the need for the legal process to address the broader implications of such crimes.

Bottom Line:

Economic offences, such as forgery and fraud, involving manipulation of documents to secure loans are not merely private disputes but societal wrongs that affect the financial health of institutions. The FIR cannot be quashed based on a compromise between the parties.

Statutory provision(s): Indian Penal Code Sections 420, 467, 468, 471; Criminal Procedure Code Section 482

Disha Shukla v. State of H.P., (Himachal Pradesh) : Law Finder Doc Id # 2796422