Gold Quest International Pvt. Ltd vs The State Of Tamilnadu And Ors

The Supreme Court held that the Division Bench of the High Court erred in setting aside the Single Judge's order quashing the FIR under Section 420 IPC and the Prize Chits and Money Circulation (Banning) Act, 1978, based on a compromise between the parties. The Court emphasized that the absence of two claimants, who did not challenge the Single Judge's order, should not impede the quashing of the FIR. The Court reaffirmed the principles established in Union of India vs. Bhajan Lal and B. S. Joshi & Ors. regarding the inherent powers of the High Court to quash criminal proceedings in light of settlements between parties.