High CourtDivision BenchAppeal allowed; FIR quashed; High Court order s...

Saleem Ahmed v. State & Anr.

Case / Petition Number:Criminal Appeal No. 1244 of 2019
Neutral Citation:[2019] 10 S.C.R. 669

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Abhay Manohar Sapre
  • R. Subhash Reddy
Judgment Date
2019-08-19
Court Decision / Holding
Appeal allowed. FIR No. 548/15 quashed. High Court order quashing the petition under Section 482 CrPC set aside; Lok Adalat award held to have settled the dispute in full and final satisfaction of the claim, leaving no subsisting cause of action for the FIR.
Final Disposition
Appeal allowed; FIR quashed; High Court order set aside; Lok Adalat settlement upheld as extinguishing the dispute in full and final satisfaction of the claim; no liberty to file FIR against the appellant in relation to the settled dispute.

Parties to the Case

Appellants / Petitioners

  • Saleem Ahmed

Respondents

  • State
  • BSES Rajdhani Power Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Anil Kumar Gautam
  • • V. K. Sharma

Counsels for Respondents

  • • Sunil Fernandes
  • • Ms. Nupur Kumar
  • • Ms. Priyansha Indra Sharma
  • • A Mohan Prasad Gupta
  • • Ms. Sunita Sharma

Case Synopsis & Summary

Saleem Ahmed v. State & Anr. concerns a criminal appeal arising from an FIR registered by the BSES Rajdhani Power Ltd. under Section 135 of the Electricity Act for alleged theft of electricity, following an assessment that resulted in a demand of Rs. 97,786. The case was taken to a Permanent Lok Adalat under the Legal Services Authorities Act, 1987, where a settlement was recorded on 27.02.2015, reducing the claim to Rs. 83,120 and providing full and final satisfaction of the entire dispute. Saleem Ahmed paid the settled amount in three instalments, and the parties were directed to sign and comply with the order. Despite the settlement, FIR 548/15 was registered on 21.03.2015 against the appellant under Section 135 of the Electricity Act. The High Court dismissed the Section 482 petition challenging the FIR. The Supreme Court allowed the appeal, holding that once the Lok Adalat settlement culminated in a passed award for full and final settlement, there was no basis to file an FIR in respect of the settled dispute. The remedy for aggrieved parties is to challenge the award itself, not pursue criminal action. The Court found that the award did not authorize filing of an FIR and that the continuation of criminal proceedings would be unjust and illegal. It relied on earlier judgments in State of Punjab v. Jalour Singh and Bhargavi Constructions to support the principle that settlement through Lok Adalat extinguishes the dispute and that the remedy lies in challenging the award rather than initiating criminal action.

Provisions of Law Cited

Code of Criminal Procedure, 1973, s.482Electricity Act, s.135Electricity Act, s.152Legal Services Authorities Act, 1987

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that once the dispute regarding the recovery of the outstanding amount was amicably settled in Lok Adalat, culminating in a full and final award, there was no occasion or basis to permit filing of an FIR against the appellant for the same dispute. The remedy for any grievance lies in challenging the Lok Adalat award, not in criminal proceedings. The award explicitly records settlement of the claim in full and final satisfaction, and the absence of any liberty clause permitting further action strengthens the position that the FIR is unjust and unsustainable. The award’s terms show settlement and finality; Section 152 of the Electricity Act allows compounding but does not justify post-settlement criminal action. The appellant had fulfilled the payment obligations and the BSES accepted them without protest, indicating the dispute had ended. The approach aligns with precedents cited (State of Punjab v. Jalour Singh; Bhargavi Constructions) that settlement in Lok Adalat extinguishes the dispute and the remedy is reform or appeal against the award.

Contentions of Respondents

The respondents argued that settlement of a civil/financial dispute in Lok Adalat does not automatically bar criminal proceedings; the absence of a explicit reserve clause in the award to file an FIR could permit further action, and the State’s power to prosecute remains intact. They contend that although the award reflects full and final satisfaction, the statutory powers under the Electricity Act to file or pursue criminal action are not extinguished solely by such settlement, and that compounding under Section 152 is a separate mechanism that does not automatically immunize the parties from criminal action. The respondents emphasize that the remedy in case of any grievance lies in challenging the award in the appropriate forum, not in filing a post-settlement FIR, and that the Lok Adalat order must be interpreted in light of statutory provisions and the context of the settlement.”},

Cited Precedents (2)

Case NameCitationTreatmentExplanation
State of Punjab & Anr. v. Jalour Singh & Ors.(2008) 2 SCC 660; [2008] 1 SCR 922PositiveCited as authority supporting the principle that settlement through Lok Adalat can end the dispute and that remedies lie in challenging the award itself rather than through post-settlement criminal action.
Bhargavi Constructions & Anr. v. Kothakapu Muthyam Reddy & Ors.(2018) 13 SCC 480; [2017] 9 SCR 380PositiveCited to reinforce the view that the settlement of a dispute in Lok Adalat can extinguish the underlying claim and that subsequent criminal action post-settlement is not warranted absent explicit reservation in the award.

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Extracted Judgment Text

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669 [2019] 10 S.C.R. 669 SALEEM AHMED A **==> picture [8 x 6] intentionally omitted <==** STATE & ANR. (Criminal Appeal No. 1244 of 2019) AUGUST 19, 2019 B ## **[ABHAY MANOHAR SAPRE AND** ## **R. SUBHASH REDDY, JJ.]** _Code of Criminal Procedure, 1973: s.482 – Quashing of FIR – Allegation of theft of electricity – Demand raised by the_ C _respondent-Electricity Department – Dispute referred to Lok Adalat – Dispute amicably settled between the appellant-consumer and the Electricity Department whereby appellant required to pay certain sum in full and final satisfaction of entire claim – The amount was duly paid by the appellant – However, subsequently, the respondent_ D _lodged FIR against the appellant in relation to the same demand – High Court refused to quash the FIR – On appeal, held: The dispute was amicably settled between the parties and in the order of Lok Adalat, no liberty was granted to the Department to file FIR against appellant – Therefore, filing of FIR was unjust and liable to be quashed – Electricity Act – s. 135 – Compromise/Settlement._ E D ## **Allowing the appeal, the Court** **HELD : 1. Once the dispute in relation to recovery of outstanding amount was finally settled between the parties (appellant and BSES) amicably in Lok Adalat resulting in passing of the award in full and final satisfaction of the entire claim, there was neither any occasion and nor any basis to file FIR by the BSES against the appellant in respect of the cause which was subject matter of an award. The remedy of the parties in such a case was only to challenge the award in appropriate forum in case they felt aggrieved by the award. [Paras 14, 15] [673-E-G]** F G _State of Punjab & Anr. v. Jalour Singh & Ors._ **(2008) 2 SCC 660 : [2008] 1 SCR 922 ;** _Bhargavi Constructions & Anr. v. Kothakapu Muthyam Reddy &_ Ors. **(2018) 13 SCC 480 : [2017] 9 SCR 380 – relied on.** H 669 670 SUPREME COURT REPORTS [2019] 10 S.C.R. - A **2. The effect of passing of an award was that dispute in relation to the demand raised by the BSES was settled amicably between the parties leaving no dispute surviving. The original demand was for Rs.97,786/- whereas the dispute was settled at Rs.83,120/- in full and final satisfaction of the claim made by the BSES against the appellant. The dispute between the parties,** - B **therefore, came to an end for all purposes consequent upon passing of an award except to the extent of recovery of the awarded amount of Rs.83,120/-. [Paras 16, 17] [673-G-H; 674-A-B]** **3. The award did not contain any condition granting liberty** C **to the BSES to file an FIR against the appellant under the Electricity Act notwithstanding settlement of the dispute and passing of an award in relation to demand in question. On the other hand, the conditions set out in the award, in clear terms, record that the dispute was settled in full and final satisfaction of** D **the demand in question. The filing of FIR after passing of the award by the Lok Adalat was wholly unjust and illegal and the same was not permissible being against the terms of the award and also for want of any subsisting cause of action arising out of demand. It is, therefore, not legally sustainable. [Paras 18, 20] [674-C-D; F]** - E - _State of Punjab & Anr. v. Jalour Singh & Ors._ **(2008) 2 SCC 660 : [2008] 1 SCR 922 ;** _Bhargavi Constructions & Anr. v. Kothakapu Muthyam Reddy & Ors._ **(2018) 13 SCC 480 : [2017] 9 SCR 380** _**–**_ **relied on.** - F ## **Case Law Reference** ||**[2008] 1 SCR 922**|**relied on.**|**Para 15**| |---|---|---|---| ||**[2017] 9 SCR 380**|**relied on.**|**Para 15**| ||CRIMINAL APPELLATE JURISDICTION : Criminal Appeal||| |G|No. 1244 of 2019.||| From the Judgment and Order dated 05.09.2018 of the High Court of Delhi at New Delhi in Criminal M.C. No. 4476 of 2018. Anil Kumar Gautam, V. K. Sharma, Advs. for the Appellant. H 671 SALEEM AHMED v. STATE & ANR. Sunil Fernandes, Ms. Nupur Kumar, Ms. Priyansha Indra Sharma, A Mohan Prasad Gupta, Ms. Sunita Sharma (for B.V.Balram Das), Advs. for the Respondents. The Judgment of the Court was delivered by ## **ABHAY MANOHAR SAPRE, J.** B ## 1. Leave granted. 2. This appeal is filed against the final judgment and order dated 05.09.2018 passed by the High Court of Delhi at New Delhi in Crl.M.C. No.4476 of 2018 whereby the High Court dismissed the petition filed by the appellant herein. C 3. The appeal involves a short point as would be clear from the facts mentioned hereinbelow. 4. The appellant is the owner of the house bearing No. F-11/75 (SF), Khasra No. 2271/4, Malviya Nagar, Khirkee Extn., New Delhi. The appellant let out this house to respondent No. 3 **(the name of** D **respondent No.3 was deleted from the array of the parties by this Court order dated 25.04.2019)** on monthly rent. 5. On 15.12.2014, the officials of the Enforcement Department of BSES Rajdhani Power Ltd.-respondent No. 2 herein inspected the electricity meter installed in the aforesaid house and found that the meter was not recording correct reading. 6. On verification, the BSES made assessment in relation to the consumption of the electricity and accordingly sent a bill for theft for Rs. 97,786/- to the appellant and respondent No. 3 because he being in occupation of the house was found consuming the electricity supplied by the BSES. The case was accordingly registered against the appellant and respondent No.3 being case No. ID - RJ 151214SC102 (CRN No. 25201 72444/SAKET)- PLA No. 1/37/2015. E F 7. On 27.02.2015, the BSES organized one Permanent Lok AdalatI in Lower Courts at Delhi under the provisions of Legal Services G Authorities Act, 1987 to settle their several recovery cases. The appellant’s case was also fixed for settlement. 8. By order dated 27.02.2015 (Annexure P-2), the case was settled at Rs.83,120/- against full and final payment of the aforesaid bill H 672 SUPREME COURT REPORTS [2019] 10 S.C.R. - A of Rs.97,786/-. The appellant accordingly paid Rs.83,120/- to the BSES in terms of the order dated 27.02.2015 in three equal installments. The order reads as under: **“In this case, the petitioner had approached this Court for settlement with regard to DT bill amounting to** B **Rs.97,786/- based on inspection dated 15.12.2004. A proposal for settlement was given on behalf of the petitioner, which was duly recorded in the Order dated 13.02.2015.** **Sh. Rajesh Arora submits that after examining this proposal, the competent authority has agreed to settle this** C **bill for a sum of Rs.83,120/-. This offer has now been accepted by the Learned Counsel for the petitioner. Accordingly, it is now agreed between the parties that the petitioner shall deposit a sum of Rs.83,120/- in full and final settlement against the impugned bill of Rs.97,786/-. It is further agreed between the parties that the petitioner shall** D **deposit the said amount of Rs.83,120/- in three equal installments. The amount of the first installment shall be deposited by the petitioner on or before 09.03.2015, the amount of second installment on or before 30.03.2015 and the amount of third installment, on or before 30.04.2015.** E **The said amount will be deposited at Andrews Ganj office. It is further agreed that in case the petitioner defaults in making the payment of any of the installments, he shall be liable to make the payment of the full amount of the impugned bill forthwith.** D **It is further agreed that after deposit of the amount of first two installments, the request of the petitioner for release of a new connection will be processed immediately thereafter and new connection will be released within one week from the date of deposit of the second installment, subject to completion of concerned formalities including deposit of any other outstanding amount against the premises in question.** F G **With this order, the dispute between the parties stands settled amicably. The said settlement has been recorded without any pressure, coercion or undue influence. Parties** H 673 SALEEM AHMED v. STATE & ANR. [ABHAY MANOHAR SAPRE, J. ] ## **are directed to sign this order of settlement. A copy of this order be supplied to the parties for compliance.”** 9. Despite settlement of the case and receiving the payment, the BSES filed FIR No.548/15 against the appellant on 21.03.2015 under Section 135 of the Electricity Act in P.S. Malviya Nagar, South Delhi in relation to the same demand. A B 10. The appellant felt aggrieved by the registration of FIR against him and filed a petition under Section 482 of the Code of Criminal Procedure, 1973 (hereinafter referred to as “the Code”) in the High Court challenging its registration as being bad in law. 11. The High Court, by impugned order, dismissed the petition, which has given rise to filing of the present appeal by way special leave by the appellant in this Court. C 12. Heard learned counsel for the parties. 13. Having heard the learned counsel for the parties and on perusal of the record of the case, we are constrained to allow the appeal, set aside the impugned order, allow the petition filed by the appellant under Section 482 of the Code and quash FIR No.548/15. 14. In our opinion, once the dispute in relation to recovery of outstanding amount was finally settled between the parties (appellant and BSES) amicably in Lok Adalat resulting in passing of the award dated 27.02.2015 in full and final satisfaction of the entire claim, there was neither any occasion and nor any basis to file FIR by the BSES against the appellant in respect of the cause which was subject matter of an award. 15. The remedy of the parties in such a case was only to challenge the award in appropriate forum in case they felt aggrieved by the award. Such was, however, not the case here. ( **See- State of Punjab & Anr. vs. Jalour Singh & Ors.,** (2008) 2 SCC 660 and **Bhargavi Constructions & Anr. vs. Kothakapu Muthyam Reddy & Ors.,** (2018) 13 SCC 480) D E F G 16. In our opinion, the effect of passing of an award was that dispute in relation to the demand raised by the BSES was settled amicably between the parties leaving no dispute surviving. The original demand was for Rs.97,786/- whereas the dispute was settled at Rs.83,120/- in H 674 SUPREME COURT REPORTS [2019] 10 S.C.R. - A full and final satisfaction of the claim made by the BSES against the appellant. 17. The dispute between the parties, therefore, came to an end for all purposes consequent upon passing of an award except to the extent of recovery of the awarded amount of Rs.83,120/-. It is not in B dispute that the appellant paid the awarded amount to the BSES in terms of the award dated 27.02.2015 and the same was also accepted by the BSES without any protest. The award thus stood fully satisfied. 18. We also find that the award did not contain any condition granting liberty to the BSES to file an FIR against the appellant under C the Electricity Act notwithstanding settlement of the dispute and passing of an award in relation to demand in question. On the other hand, the conditions set out in the award, in clear terms, record that the dispute has been settled in full and final satisfaction of the demand in question. It is not in dispute that Section 152 of the Electricity Act empowers the officer concerned to compound the offences punishable under the D Electricity Act. 19. In our view, if the BSES was so keen to file FIR against the appellant under the Electricity Act then either they should not have settled the matter through Lok Adalat or while settling should have put a condition in the award reserving therein their right to file FIR notwithstanding E settlement of the dispute in question. This was, however, not done. 20. We are, therefore, of the considered view that the filing of FIR after passing of the award by the Lok Adalat was wholly unjust and illegal and the same was not permissible being against the terms of the award and also for want of any subsisting cause of action arising out of F demand. It is, therefore, not legally sustainable. 21. In view of the foregoing discussion, the appeal succeeds and is accordingly allowed. The impugned order is set aside. As a consequence, the petition filed under Section 482 of the Code by the appellant is allowed and FIR No. 548/2015 registered in PS Malviya G Nagar, South Delhi against the appellant is hereby quashed. H Devika Gujral Appeal allowed.