Synopsis

The petitioners (CEO of HDFC Bank and officials of Phoenix ARC) sought quashing of FIRs registered under Sections 406, 409, 420 IPC based on a complaint by the legal heir of a borrower. The complaint alleged that, during loan recovery proceedings, bank officials colluded with former trustees of Lilavati Trust, misappropriated trust funds (cash payments of ₹2.05 crores shown in a photocopied diary), and caused mental harassment leading to the borrower’s death. The Bombay High Court quashed the FIRs, holding that the complaint was a counterblast to recovery proceedings without bona fides, the photocopy of a diary did not disclose essential ingredients of criminal breach of trust or cheating, and continuing the prosecution would be an abuse of process. The court applied the Bhajan Lal guidelines, emphasising that proceedings manifestly attended with mala fides and arising from purely civil disputes should be quashed.

Court: High Court of Judicature at Bombay (Criminal Appellate Jurisdiction)

Coram: Hon’ble Mr. Justice M. S. Karnik and Hon’ble Mr. Justice N. R. Borkar (Division Bench)

Date of Judgment: 5th May 2026

Citation: Criminal Writ Petition No.3205 of 2025 & connected matters (unreported)

Core Law: Criminal Procedure – Quashing of FIR (Section 528 BNSS / Section 482 CrPC); Indian Penal Code – Sections 406, 409, 420 read with 34; Principles of State of Haryana v. Bhajan Lal.

1.  Heading of the judgment

High court of judicature at bombay criminal appellate jurisdiction

Criminal writ petition no.3205 of 2025 and connected matters

Sashidhar jagdishan & ors (petitioners) vs. State of maharashtra & ors (respondents)

Coram: hon’ble mr. justice m. s. karnik and hon’ble mr. justice n. r. borkar (division bench)

Reserved on: 8th october, 2025 (and 29th january, 2026 for some); pronounced on: 5th may, 2026

2. Legal framework

Major laws and provisions involved:

• Bharatiya nagarik suraksha sanhita (bnss), 2023 – section 528 (corresponding to section 482 crpc) – inherent powers of high court to quash proceedings

• Indian penal code, 1860 – sections 406, 409 (criminal breach of trust), 420 (cheating), 34 (common intention)

• Code of criminal procedure, 1973 – section 156(3) / bnss section 175(3) – magistrate’s power to order investigation

Subject matter of the judgment:

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