Legal update
Published
20 Oct 2026
Source date
19 Oct 2026
Bombay High Court Quashes Section 385 IPC FIR Over Flat Purchasers' Settlement Demand
Why it matters
The Bombay High Court has quashed an FIR registered against flat purchasers who had demanded Rs 25 lakh each in settlement. The Court held that an exorbitant settlement demand does not attract Section 385 of the Indian Penal Code unless it is accompanied by an intentional threat or fear of injury.
Key points
- The Bombay High Court quashed an FIR filed against flat purchasers over a demand of Rs 25 lakh each.
- The Court ruled that an exorbitant settlement demand does not attract Section 385 of the Indian Penal Code in the absence of an intentional threat or fear of injury.
What changed
Ruled that demanding an exorbitant settlement amount without an intentional threat or fear of injury cannot be prosecuted under Section 385 IPC.
Who it affects
Flat purchasers and parties engaged in settlement negotiations, property developers, and criminal law practitioners.
Jurisdiction
Bombay High Court
Sources and original links
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