Complainant denying quashing fir, sought thru mediation

Have both of U signed any MOU or agreement after mediation? If so 2nd cannot deviate from it.U will have to wait for the outcome of the quash in HC.                                               

LAW - The proceedings in mediation will have no effect in the case and nothing in mediation will effect the proceedings of the court, if both the parties did not sign it, the mediator has no power to force the parties to arrive at settlement, it is only at the sweet will of the parties, the court will consider only the evidence placed before it and pass an order, it will decide on merits and not on the basis of mediation.

Now coming to your case -  I dont understand why first Partner had to pay. Because he cannot be ordered to pay and second and most important all things are to be done in front of mediator i.e parties sign an agreement and the settled memorandum of understanding is forwarded to the court.

If first two things are done, then i think there are two options available either to return what he has received, because the transaction has to be accpeted in full or if he does not return the court wil quash the FIR. (You must have a strong evidence to support your claim that he has accpeted in part and had wilfully not entered into transaction and is trying to extort money or trouble the accused, i think mediator would be the best witness, if all transactions were done in his presence.)

The documentary evidence of the agreement signed before mediator and the evidence for complying with the conditions agreed shall be projected properly before the high ourt in the quash case, even then if the case is not considered due to adamant 2nd party's refusal, you may challenge the case in  the trial court accordingly.