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Orissa High Court Quashes FIR in Landmark Mediation Settlement

LAW FINDER NEWS NETWORK | December 18, 2025 at 11:56 AM
Orissa High Court Quashes FIR in Landmark Mediation Settlement

Successful Mediation Facilitates Amicable Resolution, Saves Judicial Time and Resources


In a notable judgment delivered by the Orissa High Court, the FIR and criminal proceedings relating to Laxmisagar P.S. Case No. 567 of 2024 were quashed following a successful mediation between the parties involved. This decision underscores the growing importance of mediation as an alternative dispute resolution mechanism within the criminal justice system.


The case, titled Sarfaraz Khan v. State of Orissa, involved allegations under Sections 420, 294, and 506 of the Indian Penal Code (IPC) against Sarfaraz Khan and others. The petitioners, represented by advocate Mr. Akshaya Kumar Subudhi, sought quashing of the FIR after reaching a settlement with the informant, Mr. Pabitra Kumar Mohapatra, facilitated by a trained mediator.


Presiding over the matter, Justice Savitri Ratho emphasized the critical role of adequate mediation infrastructure and trained mediators in resolving disputes effectively. This case illustrates the potential of mediation to provide a win-win situation for all parties involved, as the informant successfully recovered the agreed settlement amount of Rs. 18,00,000, while the petitioners avoided prolonged criminal proceedings.


The court's decision follows a detailed review of the mediation report dated December 16, 2024, and a joint affidavit submitted by both parties. The successful mediation led to an amicable settlement, rendering the continuation of legal proceedings unnecessary, thereby conserving valuable court time.


The judgment aligns with the Supreme Court's observations in M/s. Patil Automation Private Limited v. Rakheja Engineers Private Limited, where the need for proper mediation facilities and trained mediators was highlighted. The Orissa High Court's ruling reinforces mediation's significance, urging state governments and judicial bodies to bolster mediation infrastructure and training to facilitate similar outcomes in future cases.


This judgment not only highlights the efficacy of mediation in resolving criminal disputes but also sets a precedent for encouraging alternative dispute resolution methods in the Indian legal system.


Bottom Line:

The case highlights the significance of mediation in the criminal justice system, emphasizing how the availability of infrastructure, trained mediators, and willingness of parties can lead to effective dispute resolution, saving court time and providing a win-win situation for all parties involved.


Statutory provision(s): Section 482 of the Criminal Procedure Code, 1973, Sections 420, 294, and 506 of the Indian Penal Code


Sarfaraz Khan v. State of Orissa, (Orissa) : Law Finder Doc Id # 2832388

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