'Win-Win Situation For All': Orissa High Court Quashes FIR Alleging Cheating After Parties Resolve Dispute Through Mediation

The Orissa High Court has recently quashed a First Information Report (FIR) alleging commission of offences of cheating and dishonestly inducing delivery of property, uttering obscene words to the annoyance of others in public and criminal intimidation, after the informant and the accused persons settled the dispute among themselves amicably through mediation.Agreeing to draw curtains on the impending criminal prosecution, the Bench of Justice Savitri Ratho was gruntled to observe –“This is a case where settlement of the dispute between the parties has been possible on account of the availability of infrastructure for mediation in the State, availability of a trained mediator for mediating between the parties and willingness of the parties on the advice of their counsel for settlement of the matter through mediation leading to a win -win situation for all concerned. The informant has got back his money, the accused persons do not have to face criminal proceedings and valuable time of the court has been saved.”An FIR was registered against the petitioners along with two other persons for commission of offences under Sections 420, 294 and 506 of IPC. The petitioners had earlier sought anticipatory bail from the High Court in connection with the case, in which the Court had granted interim protection and referred the matter to mediation for an amicable settlement.Pursuant to such order, the parties appeared for mediation. The mediator submitted a report on 18.12.2024 indicating success in the mediation. The petitioners agreed to pay Rs.18,00,000/- to the opposite party-informant by 10.01.2025. Based on such report, the High Court on 15.09.2025 disposed of the anticipatory bail applications of the petitioners directing their release on bail on surrender before the trial Court. Justice Ratho perused the mediation report as well as an agreement between the parties whereby the petitioners cleared the abovesaid outstanding amount. The counsel appearing on behalf of the informant also apprised the Court about the amicable settlement of dispute between the parties. He also expressed disinclination to pursue the criminal prosecution any further.A joint affidavit sworn by the petitioners as well as the informant was taken on record showing out of the Court settlement and scant need for criminal trial anymore. The Court cited M/s. Patil Automation Private Limited v. Rakheja Engineers Private Limited, 2022 LiveLaw (SC) 678 and expressed satisfaction that due to availability of adequate infrastructure, mediation could resolve the dispute in a friendly manner, saving valuable time of the Court.As a corollary, the FIR along with the corresponding pending criminal proceedings were quashed.Case Title: Sarfaraz Khan & Ors. v. State of Orissa & Anr.Case No: CRLMC No. 5379 of 2025Date of Judgment: December 18, 2025Counsel for the Petitioners: Mr. Akshaya Kumar Subudhi, AdvocateCounsel for the Opposite Parties: Mr. S.N. Biswal, Additional Standing Counsel for the State; Mr. Gyana Ranjan Dhal, Advocate for the InformantCitation: 2026 LiveLaw (Ori) 1Click Here To Read/Download Order

'Win-Win Situation For All': Orissa High Court Quashes FIR Alleging Cheating After Parties Resolve Dispute Through Mediation

Jyoti Prakash Dutta

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