Nikhil Merchant vs C.B.I. & Anr

The Supreme Court held that under Section 120B and Sections 420, 467, 468, 471A IPC, along with Sections 5(2) and 5(1)(d) of the Prevention of Corruption Act, 1947 and Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act, 1988, a compromise in a civil suit can lead to the quashing of criminal proceedings if the parties withdraw all claims against each other. The Court emphasized that the principles established in Central Bureau of Investigation vs. Duncans Agro Industries Ltd. support the view that a compoundable offence like cheating can be resolved through a civil compromise. Consequently, the Court upheld the High Court's decision to quash the criminal complaint against the appellant due to the settlement reached with the Bank.