The Bombay High Court (HC) has quashed a criminal complaint against the directors of a company in a cheating case on a condition that the directors and the complainant(an investor) pay Rs 50,000 each towards the purchase of necessary books for inmates of Arthur Road and Taloja prisons.
A division bench of justices PB Varale and SM Modak, early this month, quashed the FIR by mutual consent which was lodged againstthe directors of Effco Finishes and Technologies by an investor with the Chinchwad police station in Pune.
The dispute was over financial transactions where both the sides were to invest in the company. The complainant claimed to have fulfilled his side of the agreement and alleged that the directors failed to fulfil their promise. He further alleged thatthe directors had misappropriated funds. The directors had approached the HC seeking pre-arrest bail.
Pending hearing in that plea, they reached a settlement with the complainant and informed the HC that they signed a deed of settlement in March 2021. The judges said they are inclined to quash the FIR since the parties have settled the dispute. Besides,the complainant has agreed to provide consultancy services to the company
