HC quashes FIR against Panchkula businessman, cites malicious Prosecution in Civil dispute

The decision came from a single-judge bench of Hon’ble Justice Virender Singh on a petition filed under Section 482 of the Code of Criminal Procedure (CrPC) by the accused seeking quashing of the FIR. Aggarwal had contended that the allegations against him were baseless and arose from a business dispute that had been settled amicably.

The FIR had alleged that Aggarwal had impersonated an Inspector General of the Intelligence Bureau (IG, IB), moved around with armed Haryana Police personnel, and extorted money from industrialists in Kala Amb and Baddi. The complaint was initiated on the basis of a source report rather than a formal complaint.

Aggarwal, however, submitted that he had never impersonated a central agency officer and held a valid license for the revolver found in his possession during a house search. He further stated that he was the owner of Kalprishi Healthways Private Limited, which had legally taken over RAS Herbal under a tripartite agreement with Punjab National Bank. His visits to Kala Amb and Baddi were related to regular business transactions with various pharmaceutical firms including Symbiosis Pharmaceuticals Private Limited, owned by Jagbir Singh—the main prosecution witness.

According to Aggarwal, the monetary exchanges cited in the FIR, including Rs. 1.41 crores allegedly extorted, were part of longstanding commercial dealings, backed by tax invoices and bank transactions. He maintained that the FIR was lodged maliciously by Jagbir Singh following a dispute, which has since been resolved.

Importantly, in the course of re-investigation, several prosecution witnesses including Jagbir Singh retracted their earlier statements, stating they were given under pressure. Singh even submitted in writing that the monetary dispute had been settled and he no longer wished to pursue the case. Similar statements were submitted by other key witnesses, who confirmed their original testimonies were coerced.

The court took cognizance of these developments and noted that the continuation of criminal proceedings in light of the retractions and settlement would amount to an abuse of the legal process. Justice Virender Singh observed that the case appeared to be a civil dispute over financial transactions that had been given a criminal color.

In his judgment, Justice Singh cited several Supreme Court precedents, including *State of Haryana v. Bhajan Lal*, *Naresh Kumar v. State of Karnataka*, and *Indian Oil Corporation v. NEPC India Ltd.*, emphasizing the need to quash proceedings that stem from mala fide intent and abuse of the criminal justice system.

Accordingly, the court ordered the quashing of FIR No. 1/2022 and all related proceedings against Vinay Aggarwal pending before the trial court.

However now, with quashing of the FIR this ruling has reiterated the judiciary’s role in safeguarding individuals against frivolous or malicious prosecution in cases that fundamentally pertain to civil disputes.