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2022 Supreme(Guj) 435

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
B.N. KARIA, J.
ISHAKBHAI KESARBHAI SHETA – Appellant
Versus
SHREE RAM TRANSPORT FINANCE COMPANY LTD THROUGH POA HOLDER UTTPALBHAI JAYANTILAL THAKKAR & 1 other(s) – Respondent
R/CRIMINAL REVISION APPLICATION NO. 653 of 2017
Decided on : 19-04-2022

Advocates:
Advocate Appeared:
For the Appellant : MR VIRAL J. VYAS FOR MR CHINTAN S POPAT
For the Respondent: MS NARMATA MULCHANDANI FOR MR MANISH J PATEL, MS MH BHATT, APP

The main legal point established in the judgment is the court's discretion to allow the compromise between the parties and quash the orders passed by the lower courts based on the settlement, in line with the efficacy of banking operations and credibility in transacting business through cheques.

Headnote:

Negotiable Instruments Act - Settlement of Dispute - Section 138 of N.L.Act - [Section 138 of N.L.Act] - The court allowed the revision application and quashed the judgment and order passed in Criminal Appeal No. 42 of 2016 and Criminal Case No. 44 of 2012, acquitting the accused of the charge under Section 138 of the Negotiable Instruments Act. The court permitted the accused to withdraw the deposited amount of Rs. 2,50,000 and cancelled any existing bail bond.

Fact of the Case:

The applicant challenged the judgment and order passed in Criminal Appeal No. 42 of 2016 and Criminal Case No. 44 of 2012, seeking acquittal from the charges under Section 138 of the Negotiable Instruments Act. The dispute between the parties was settled amicably, and the respondent no.1 received the outstanding loan amount. The respondent no.1 expressed no objection to quashing the orders passed by the lower courts.

Finding of the Court:

The court found that the dispute was settled amicably between the parties, and the respondent no.1 received the outstanding loan amount. Considering the settlement and the ratio of the Apex Court's decision, the court allowed the revision application and quashed the judgment and order, acquitting the accused of the charge under Section 138 of the Negotiable Instruments Act.

Issues: The main issue was the settlement of the dispute between the parties and the request for quashing the orders passed by the lower courts.

Ratio Decidendi: The court considered the settlement between the parties and applied the ratio of the Apex Court's decision, which emphasized the efficacy of banking operations and the credibility in transacting business through cheques. The court found no reason to refuse the compromise between the parties and allowed the revision application.

Final Decision: The court allowed the revision application, quashed the judgment and order passed in Criminal Appeal No. 42 of 2016 and Criminal Case No. 44 of 2012, acquitted the accused of the charge under Section 138 of the Negotiable Instruments Act, and permitted the accused to withdraw the deposited amount of Rs. 2,50,000.

ORDER :

1. By way of present application, the applicant has challenged the judgment and order dated 29.05.2017 passed in Criminal Appeal No. 42 of 2016 by learned 2nd Additional District Judge, Junagadh as well as judgment and order dated 10.03.2016 passed in Criminal Case No. 44 of 2012 by learned 3rd Additional Senior Civil Judge and Additional Chief Judicial Magistrate (Special Negotiable Court), Junagadh and acquit him from the charges leveled against him.

2. Today, when the matter was taken up for hearing, a joint submission was made by learned advocates for the respective parties that dispute between the parties is settled amicably.

3. Learned advocate for the applicant submits that the dispute has been settled between the parties and applicant may be permitted to withdraw the amount of Rs. 2,50,000/- deposited by the applicant at the time of admitting the revision application.

4. Learned advocate for the respondent no.1 submits that the dispute has been settled between the parties and earlier, the amount of Rs. 2,50,000/- was deposited by the applicant before the trial court and thus, the respondent no.1 has no objection if the applicant may be permitted to withdraw such deposited amount. He further submits that full and final settlement has been arrived at between the parties and respondent no.1 has no objection if the orders passed by the courts below would be quashed and set aside.

5. Learned APP for the respondent No.2- State has submitted that after recording evidence, learned lower courts have passed the order of conviction against the present applicant and therefore, request made by both the learned advocates for the applicants as well as learned advocate for the respondent no.2 may not be granted.

6. Today, on a request being made by learned advocate for the respondent no.1, respondent no.1 was permitted to appear before this court and while making inquiry, he submits that applicant has paid the entire amount to him and therefore, now there is no dispute exist and now, no ill will or grievance among the parties thus he does not want to proceed further with the prosecution initiated by him.

7. Learned advocate for the respondent no.1 has identified the respondent no.1 as well as his signature in the affidavit filed by the respondent no.1 and has confirmed the fact about settlement arrived at between the parties.

8. Having considered the facts of the case and submissions made by learned advocates for the respective parties as well as learned APP for the respondent No.2-State and considering the facts of the affidavit filed by the respondent no.1, it appears that the dispute is settled amicably between the parties and respondent no.1 has received outstanding loan amount.

9. Relevant paras of the affidavit filed by the respondent no.1 are as under:

“1. I am original complainant(Respondent no.1herein) of the complaint filed under Section 138 of the Negotiable Instruments Act before 3" Additional Senior Civil Judge and Chief Judicial Magistrate (Special Negotiable Court), Junagadh for the dishonored of the cheque of Rs.5,31,330/under section 138 of N.LAct, against petitioner herein. In which at the conclusion of the trial the petitioner herein has been convicted by order dated 10.03.2016 under section 138 of Negotiable Instrument Act.

2. Being aggrieved and dissatisfied with the order passed by the Order passed by 3rd Additional Senior Civil Judge and Chief Judicial Magistrate (Special Negotiable Court), Junagadh, the applicant/accused has filed Criminal Appeal before 2nd Additional Sessions Judge Junagadh. Wherein order dated 10.03.2016 has been confirmed by order dated 29.05.2017 passed in Criminal Appeal No. 42 of 2016.

3. Therefore, Being aggrieved and dissatisfied with above stated orders, present revision application before this Honble court has been preferred and same has been registered as Criminal Appeal no. 653 of 2017 and also Same was admitted by this Hon’ble court by order dated 20.07.2017 and same 1s pending for fu

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