Zhongshuo Engineering India Private Ltd, v. State Rep.By,
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 05-06-2026
CORAM
THE HON'BLE MR JUSTICE M. NIRMAL KUMAR and Crl.MP.No.8421 of 2026
1. Zhongshuo Engineering India Private Ltd, Represented by its authorized signatory Ganesh Chandra, Having office at SF.No.71/3 Part, Globevill main road, Mambakkam, Sriperumbudur-602106.
2. Haomin Representative Official Connected, M/s.Zhongshuo Engineering India P.Ltd, SF.No.71/1 Part 4, 5 Part, Globevill main road, Mambakkam, Sriperumbudur-602106.
..Petitioner(s) Vs
1. State rep.by, The Inspector of Police, Central Crime Branch-I, Greater Chennai Police, Vepery, Chennai.
Cr.No.12/2026 dated 19.02.2026.
2. Commercial and Audit Manager, M/s.Aditya Infrastructure Pvt.Ltd, No.7, 2nd Floor, Chengalvarayan Street, Shenoy Nagar, Chennai-600 030.
..Respondent(s)
PRAYER: This criminal original petition filed under Section 528 BNSS, 2023, to call for the records pertaining to the Impugned FIR in Cr.No.12 of 2026 on the file of the 1st respondent police and quash the same. For Petitioner(s):
Mr.J.Ravikumar For Respondent(s):
Mr.R. RAJASEKARAN Govt. Advocate (CRL. SIDE) for R1 Mr.D.Senthil Kumar for R2
ORDER
The petitioners/accused in crime No.12 of 2026 for offences under Sections 420, 506(i) and 34 IPC filed this quash petition. 2.The gist of the case against the petitioners is that the second respondent/defacto complainant's company namely M/s. Aditya Infrastructure Pvt. Ltd., and the petitioners company entered into a sub-contract agreement on 20.04.2023 for executing out D04 and D06 building civil works at new Dormitory EPC Project at Plot No.15, Survey Nos.202, Part 210 Part and 211 Sipcot Industrial Park - Phase IV Mambakkam Village, Sriperumbudur Taluk, Kancheepuram, Tamil Nadu - 602 106. As per the agreement, the defacto complainant's company completed the work and raised several invoices supported with measurement sheets, work completion records, and all required documents. However, despite accepting the work and acknowledging the
correctness of the bills, the petitioners company failed and neglected to pay the agreed amounts, the billed dues as on date amount to Rs.8,74,09,542.04/- apart from this, there is an unbilled amount of Rs.6,05,56,855.73/-, necessary documents for the same was provided, henceforth as on date the total dues outstanding amount is at Rs.14,79,66,396.77/-. Despite repeated requests through email, WhatsApp messages, written representations and personal meetings, the petitioners' company avoided payment and continued to delay settlement with malafide intention and they issued verbal threats stating that if continued to demand or escalated the matter to authorities, they would blacklist the defacto company's with the developer company, obstruct our future projects and create false allegations against the defacto company's.
Hence, lodged a complaint. Based on the complaint, a case in CCB-1 Crime No.12/2026 was registered under Sections 420, 506(i) r/w 34 IPC. 3.The learned counsel appearing for the petitioners submitted that the petitioners entered sub contract agreement with the defacto complainant company for execution of civil works. After completion of works, the defacto complainant sought payment for alleged work done to the tune of Rs.14.79 crores and admittedly bills were raised only for Rs.8.74 crores leaving unbilled sum of Rs.6.05 crores and the remedy of criminal complaint was invoked for recovery of money, which is impermissible under law. Further, the first petitioner agrees to pay a sum of Rs.
company towards full and final settlement in all claims in respect of sub contract agreement dated 22.04.2023. He further submitted that Bureau of Immigration (Ministry of Home Affairs), Government of India, issued Look Out Circular in LOC No.2026411638 on 28.02.2026 against the second petitioner and the same was forwarded to the respondent police. If the LOC is still in force, the second petitioner could not move any country. Hence, he prays the LOC may be withdrawn.
4.The learned counsel for the second respondent /defacto complainant's company submitted that the second respondent company agreed to withdraw the complaint and consequently, has no objection to withdraw the look out circular issued against the second petitioner. He further submitted that the second respondent/defacto complainant's company agrees to receive a sum of Rs.8,00,000/- towards full and final settlement of all claims arising under the sub-contract agreement dated 22.04.2023.
5. Further, the learned counsel for the petitioners as well as the learned counsel for the second respondent/defacto complainant's company submitted that now, the parties have amicably settled the issue among themselves. Hence, they seek to quash the proceedings pending against the petitioners and in this regard, a Compromise entered into between them, which was scanned and reproduced hereunder:
6.The learned Govt. Advocate (Crl.side) appearing for the first respondent submitted that based on the complaint of the defacto complainant, a case registered in CCB-1 crime No.12/2026 for offences under Sections 420, 506(i) r/w 34 IPC. He further submitted that though the parties entered into a compromise while this case is pending, this Court, taking into account the seriousness of the offence, has to consider the issue as to whether offences of this nature can be quashed on the ground of compromise between parties. 7.Heard both sides and perused the materials available on record. 8.The case is still at the stage of investigation. By passage of time, the parties have decided to bury their hatchet and compromise the dispute amicably among themselves.
9.The petitioners and the defacto complainant/R2 appeared before this Court and were identified by their respective counsel. 10.On interaction, the defacto complainant/R2 stated that he has amicably settled the dispute with the petitioners and he is not willing to pursue the criminal proceedings against the petitioners and he has no objection to withdraw the LOC issued against the second petitioner and therefore, seeks to quash the same.
11.The main issue that requires the consideration of this Court is as to whether this Court can quash the criminal proceedings involving noncompoundable offences pending against the petitioner. The Hon'ble Supreme Court, in the case of Parbathbhai Aahir @ Parbathbhai Vs. State of Gujarat, reported in (2017) 9 SCC 641, has given sufficient guidelines that must be taken into consideration by this Court while exercising its jurisdiction under Section 482 of Cr.P.C. (corresponding to Section 528 BNSS), to quash noncompoundable offences. One very important test that has been laid down is that the Court must necessarily examine if the crime in question is purely individual in nature or a crime against the society with overriding public interest. The Hon'ble Supreme Court has held that offences against the society with overriding public interest even if they get settled between the parties, cannot be quashed by this Court.
12.In the present case, the offences in question are purely individual/personal in nature. It involves dispute between the petitioners and the second respondent defacto complainant and quashing the proceedings will not affect any overriding public interest in this case and no useful purpose will be served in continuing with the criminal proceedings. In view of the above, this Court is inclined to quash the proceedings pending against the petitioners in CCB-1 crime No.12/2026 on the file of the first respondent police.
13.Accordingly, this Criminal Original Petition stands allowed and the proceedings in CCB-1 crime No.12/2026 pending on the file of the first respondent police, is quashed as against the petitioners and the first respondent police to take necessary steps to withdraw the LOC issued against the second petitioner. Consequently, connected miscellaneous petition is closed. 14.The Memorandum of Compromise filed by the petitioners and the second respondent defacto complainant for compromising the offences shall form part of the records.
05-06-2026 Index: Yes/No Speaking/Non-speaking order sms To
1. The Inspector of Police, Central Crime Branch-I, Greater Chennai Police, Vepery, Chennai.
Cr.No.12/2026 dated 19.02.2026.
2. The Public Prosecutor High Court, Madras.
M.NIRMAL KUMAR, J.
sms and Crl.MP.No.8421 of 2026 05-06-2026