HIGH COURT OF GUJARAT
HASMUKH D. SUTHAR, J
ASHVINBHAI S. KANDOI – Appellant
Versus
STATE OF GUJARAT – Respondent
R/CRIMINAL REVISION APPLICATION (AGAINST CONVICTION - NEGOTIABLE INSTRUMENT ACT) NO. 477 of 2025
(A) Bharatiya Nagarik Suraksha Sanhita, 2023 - Section 438 and 442 - Negotiable Instruments Act, 1881 - Section 138 - Revision application for quashing conviction and sentence - Dispute resolved amicably between parties, with cheque amount paid - Conviction quashed subject to deposit of costs - The original complainant has confirmed the settlement and no longer wishes to pursue the matter. (Paras 2, 8, 9)
(B) Compounding of offences - Offences under the NI Act are compoundable at any stage, allowing for resolution without further litigation. (Paras 8, 9)
Facts of the case:
The applicant sought to quash the conviction under Section 138 of the NI Act, which was upheld by the appellate court. The parties resolved the dispute amicably, with the complainant confirming receipt of the cheque amount of Rs.4,50,000/-. (Paras 3, 6, 7)
Findings of Court:
The court recognized the amicable resolution of the dispute and allowed the revision application, quashing the previous orders of conviction, subject to a cost deposit. (Paras 9, 10)
Issues: Whether the conviction under Section 138 of the NI Act can be quashed given that the parties have settled the dispute amicably. (Para 8)
Ratio Decidendi: The court emphasized the principle that compoundable offences can be settled at any stage, and upon settlement, the conviction can be quashed, with costs imposed for belated resolution. (Paras 8, 9)
Result: The revision application is allowed, and the conviction is quashed subject to cost deposit.
ORDER :
1. RULE. Learned Additional Public Prosecutor as well as learned advocate appearing for the Complainant waive service of notice of Rule on behalf of the respective respondents.
2. Considering the issue involved in the present application and with consent of the learned advocates appearing for the respective parties as well as considering the fact that the dispute amongst the applicant and original complainant has been resolved amicably, this application is taken up for final disposal forthwith as alleged offence is bailable and compoundable.
3. By way of this application under Section 438 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (For short “ BNSS ”) read with section 442 of BNSS, the applicant has prayed for quashing and setting aside the order dated 06.02.2023 passed by the learned 10th Additional Chief Judicial Magistrate, Vadodara in Criminal Case No.37204/2019, whereby the Trial Court has been pleased to hold the applicant guilty for the offence punishable under Section 138 of Negotiable Instruments Act, 1881 (for short “NI Act”) and sentenced to undergo SI of one year and also directed to pay cheque amount to the original complainant as compensation. The said order was assailed before the learned 6th Additional Sessions Judge, Vadodara by way of Criminal Appeal No.115 of 2023. The said appeal came to be dismissed vide impugned Judgment and order of conviction and sentence dated 14.02.2025 and the order of conviction has been confirmed and upheld by the concerned Additional Sessions Judge. Hence, this Revision Application is filed.
4. Learned advocate for the applicant has taken this Court through the factual matrix arising out of the present application. At the outset, it is submitted that the parties have amicably resolved the issue. It is further submitted that in view of the fact that the dispute is resolved, present application deserves consideration.
5. Learned Additional Public Prosecutor appearing for the State has opposed the present application and submitted that considering the seriousness of the offence, present application may be rejected.
6. Learned advocate Ms. Savaliya Mayuri for the Original Complainant has received instructions to appear on behalf of the original-complainant. She is permitted to file her appearance before the Registry.
6.1 Learned advocate for original complainant has reiterated the contentions raised by the learned advocate for the applicant. The learned advocate for original complainant also relied upon the affidavit filed by the original complainant – Dipak Mukundbhai Thakkar – Original Complainant who is also personally present in person before the Court and is identified by learned advocate for the original complainant. The affidavit sworn by the original complainant is taken on record. On inquiry made by the Court, original complainant has declared before this Court that the dispute between the applicant and the original complainant is resolved and cheque amount has already been received by the original complainant and therefore, now the grievance stands redressed. It is therefore submitted that the present application may be allowed.
7. At the outset, learned advocates for the respective parties have jointly submitted that matter is settled and now the original complainant does not wants to pursue for the further litigation as complainant and applicant have settled the matter and in this regard, affidavit of original complainant has been placed, which is taken on record. The contents of the affidavit is also admitted by the original complainant. Even complainant has remained present before this Court and stated that he has no objection if the conviction recorded by the learned Trial Court as well as Appellate Court is set aside.
8. Considering the fact that the dispute is settled between the parties and the applicant has paid the cheque amount i.e. Rs.4,50,000/- to the complainant and said fact has been confirmed by the complainant as offence is compoundable one at any stage
Compoundable offences under the Negotiable Instruments Act can be settled amicably, allowing for quashing of convictions upon resolution.
A compoundable offence under the Negotiable Instruments Act can be resolved amicably, allowing for the quashing of conviction upon settlement, subject to costs.
The court quashed the conviction under Section 138 of the N.I. Act due to the amicable resolution of the dispute, emphasizing the compoundable nature of the offence.
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