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As per the case facts the CBI initiated an inquiry against a company based on an unfinalized audit report attempting to turn a civil contractual dispute into a criminal matter
...by misinterpreting agreements The appeal arose because the lower court's orders for charges were considered unsustainable due to significant flaws suggesting the CBI conducted a fishing inquiry The question arose whether the CBI's criminal proceedings based primarily on an unfinalized audit report and against a civil dispute were justified and if the High Court should use its inherent powers to quash such proceedings Finally the Supreme Court found the CBI's inquiry to be a roving and fishing inquiry mischaracterizing a civil dispute as criminal without justification It concluded that the orders to charge were unsustainable and set them aside The Court also affirmed the High Court's power to quash proceedings that abuse the court's process or lead to harassment
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