If you are stuck in such a situation, here is what to do.

Mr. Alok, a resident of Rampur, filed a cyber complaint against his business associate, Mr. Brijesh, concerning a disputed payment of ₹12 lakhs. This action was taken in a moment of frustration. The situation became complicated when, after nearly two years, the Rampur Cyber Crime police arrested Mr. Brijesh. This occurred despite an existing agreement for repayment, under which Mr. Brijesh had already made partial payments.

Mr. Brijesh has since been released on conditional bail, but his troubles are far from over. His laptop, mobile phone, and bank accounts have been seized and frozen by the authorities as part of the investigation. Now, both Mr. Alok and Mr. Brijesh have amicably settled their financial dispute and wish to put an end to the legal proceedings. However, they have hit a roadblock as the police are refusing to close the First Information Report (FIR), stating that the case is no longer a private matter but one involving the State. Both parties are under immense stress, having already spent over ₹5 lakhs on related costs, and are desperate to find a way to formally withdraw the complaint, retrieve Mr. Brijesh’s property, and unfreeze his accounts without further legal entanglement.

Advice in such cases

• Understand the Offense’s Nature: Once an FIR is registered for a cognizable offense, which includes most cybercrimes, it transforms from a dispute between two individuals into a case of “State vs. Accused.” The original complainant (Mr. Alok) loses the unilateral power to withdraw the complaint. The police are legally bound to investigate and cannot simply close the file based on the parties’ private settlement.
• Formalize the Settlement: It is crucial for both parties to draft and sign a formal Settlement Agreement or a Memorandum of Understanding (MoU). This document should clearly state the terms of the compromise, confirmation of payment received, and the complainant’s desire to not proceed with the case. This agreement becomes a key piece of evidence for the court.
• Petition the High Court: The most effective and proper legal route is to file a petition under Section 482 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, before the jurisdictional High Court. This petition seeks the quashing of the FIR based on the compromise reached between the parties. The Supreme Court has repeatedly held that the High Court can quash proceedings for even non-compoundable offenses if the dispute is primarily civil in nature and the parties have settled it.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

• Section 482 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023: This is the cornerstone provision for this situation. It grants the High Court inherent powers to make any order necessary to prevent the abuse of the process of any court or to secure the ends of justice. Quashing an FIR based on a settlement falls squarely within these powers.
• Offenses under the Bharatiya Nyaya Sanhita (BNS), 2023: The FIR would likely invoke sections such as Section 316 (Cheating) or Section 314 (Criminal Breach of Trust). These are serious, non-compoundable offenses, meaning they cannot be settled out of court without the High Court’s intervention.
• Offenses under the Information Technology Act, 2000: The FIR might also include charges under this Act, such as Section 66D (Cheating by personation using computer resource). The principles for quashing based on a settlement remain the same.

If you are the complainant

• Submit a Supporting Affidavit: As the original complainant, you must file a sworn affidavit in the High Court. In this affidavit, you will confirm the details of the settlement, acknowledge receipt of the agreed-upon amount, and state unequivocally that you have no objection to the FIR being quashed.
• Confirm the Compromise: You may be required to be present in the High Court, either in person or via video conference, to verify the contents of your affidavit and confirm the compromise before the judges.
• Cooperate Fully: Your cooperation is essential for the quashing petition to succeed. Any indication of coercion or falsehood can lead the court to reject the petition.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

In this context, “victim” refers to the accused person who is now a victim of the circumstances following the settlement.

• File the Quashing Petition: As the accused, you are the primary petitioner who will move the High Court under Section 482 of the BNSS. The complainant will be named as a respondent in the petition and will support your plea for quashing the FIR.
• Seek Return of Seized Property: You can file a separate application before the trial court (Magistrate) for the release of your seized phone and laptop on ‘Superdari’ (interim custody). The settlement agreement will significantly strengthen your claim for the return of these items.
• Apply for Defreezing of Bank Accounts: An application can be filed before the trial court or the High Court to issue directions to the police/bank to unfreeze your accounts. The application should highlight the settlement and the hardship caused by the freeze.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

The police’s refusal to close the complaint is often a matter of procedural correctness, not necessarily malice. Once an FIR for a cognizable offense is registered and investigation has progressed (especially with an arrest), they are mandated to file a final report (chargesheet) before the court. They do not have the legal authority to close the case themselves based on a private compromise. They must await an order from a competent court, such as the High Court’s quashing order. A lawyer’s intervention is crucial to communicate the settlement to the police and ensure their report to the High Court reflects the compromise.

FAQs people normally have

What evidence is required?

• A copy of the FIR.
• The formally drafted and notarized Compromise Deed or MoU.
• Affidavits from both the complainant and the accused confirming the settlement.
• Proof of transactions related to the settlement (e.g., bank statements).
• The main petition filed under Section 482 of the BNSS, detailing the facts and legal grounds for quashing.

How long will the investigation take?

The police investigation technically continues until a court order stops it. The process of getting an FIR quashed by the High Court can take anywhere from a few weeks to several months, depending on the High Court’s caseload. Once the High Court issues the quashing order, all police proceedings must stop. The applications for the return of devices and the defreezing of accounts can be filed concurrently and may be decided within a few weeks of filing, especially if the settlement is not contested.

Advocate Sudhir Rao, Supreme Court of India