The petitioners (Accused Nos. 2 and 3 in a CBI case) sought quashing of criminal proceedings in C.C.No.24019 of 2017 before the XXIV Additional Special Judge for CBI cases, Chennai, arising from alleged misappropriation and cheating of a bank to the tune of Rs.480.77 lakhs during 2012 through diversion of sanctioned credit facilities. The petitioners argued that after the charge sheet was filed, the bank had offered a One-Time Settlement (OTS) scheme, under which Rs.31,00,000/- was accepted as full and final settlement on 21.12.2018, and a 'No Dues Certificate' was issued on 14.02.2019. Relying on several Supreme Court precedents holding that when a bank-borrower dispute is settled through OTS and the loan account is closed, continuation of criminal proceedings is not justified as the dispute is predominantly civil in nature and the possibility of conviction becomes remote. The Madras High Court considered these precedents and the fact of settlement to determine whether the proceedings warranted quashing under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023.