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2026 Supreme(Online)(Guj) 1356

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Vimal K. Vyas, J
ASHISH DHIRAJLAL MEHTAV/sSTATE OF GUJARAT
R/CRIMINAL MISC.APPLICATION (FOR CONSENT QUASHING) NO. 5263 of 2026 | R/CR.MA/5263/2026



Advocates:
For the Appellants/Petitioners: Malay S Patel
For the Respondents: Krina Calla, Nayan N. Baraiya

The High Court may exercise its inherent powers under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, to quash a conviction under Section 138 of the Negotiable Instruments Act if the parties have amicably settled the dispute, as continuing such proceedings would be an abuse of the process of law.

Headnote:The applicant sought the invocation of inherent powers under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, to quash a judgment and order dated 11.10.2019 passed by the 2nd Additional Judicial Magistrate, First Class, Mahuva, in Criminal Case No. 1258 of 2018, for an offence punishable under Section 138 of the Negotiable Instruments Act. The complainant filed an affidavit confirming the receipt of dues amounting to Rs. 9,00,000/- and stated that the dispute had been amicably resolved, expressing no objection to the quashing of the conviction. The court found that continuing the proceedings would be a futile exercise and an abuse of the process of law. The primary issue was whether the conviction and consequential proceedings could be quashed upon the amicable settlement of the dispute between the parties. The court reasoned that in light of established precedents, where the parties have settled their grievances, the continuation of criminal proceedings is an abuse of the process of law and should be quashed to secure the ends of justice. In the result, the application is allowed. The judgment and order dated 11.10.2019 passed by the learned 2nd Additional Judicial Magistrate, First Class, Mahuva, in Criminal Case No.1258 of 2018, for the offences punishable under Section 138 of the Negotiable Instruments Act, as well as all other consequential proceedings arising pursuant thereto are hereby ordered to be quashed and set-aside qua the applicant.

Table of Content
1. the parties reached an amicable settlement and the complainant received the cheque amount. (Para 1 , 2 , 3 , 5 , 6 , 7)
2. quashing of proceedings is appropriate when settlement occurs to prevent abuse of process. (Para 4 , 8 , 9)
3. conviction quashed subject to payment of costs to dlsa. (Para 10 , 11 , 12)

ORAL ORDER

1. Learned advocate Mr. Nayan N. Baraiya appears and submits that he has instructions to appear on behalf of the respondent no.2 - complainant. He is permitted to file his appearance. Registry shall accept his vakalatnama.

2. By way of preferring the present application under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, the applicant-accused seeks to invoke the inherent powers of this Court, praying to quash and set-aside the judgment and order dated 11.10.2019 passed by the learned 2nd Additional Judicial Magistrate, First Class, Mahuva, in Criminal Case No.1258 of 2018, for the offence punishable under Section 138 of the Negotiable Instruments Act, as well as all other consequential proceedings arising pursuant thereto.

3. Today, when the matter is called out, the complainant, who is personally present before this Court, has produced his identity proof as well as the afÏdavit, which are ordered to be taken on record. In the said afÏdavit, the complainant has categorically stated that he has received his dues of Rs.9,00,000/- and the dispute has been amicably resolved with the applicant. The complainant has further stated that he has no grievance or ill-will against the applicant.

4. Considering the issue involved in the present application as well as considering the fact that the dispute has been amicably resolved between the parties, with the consent of learned advocates appearing for the respective parties, the present application is taken up for final disposal.

5. RULE returnable forthwith. Learned APP Ms. Krina Calla waives service of notice of rule for and on behalf of the respondent no.1 – State and learned advocate Mr. Nayan N. Baraiya waives service of notice of rule for and on behalf of the respondent no.2 – complainant.

6. The complainant, who is personally present before this Court, has categorically stated that the dispute has been amicably resolved with the applicant and he has no objection if the application is allowed and the impugned judgment and order is quashed and set-aside.

7. The relevant paragraphs of the afÏdavit filed by the complainant – Udaykumar Kanaiyalal Parekh, read thus :

“ 1. I say and submit that I have filed complaint under section 138 of the negotiable instrument act as Criminal Case no. 1258 Of 2018 against the present petitioner and I am aware about the facts and the circumstances of the present case and therefore, I am filing the present affidavit as under.

2. I say and submits that the cheque amount Rs. 9,00,000/- is paid to me and for the same affidavit in vernacular language was also made between us, wherein I stated that I am aware that earlier the applicant was moved to Mumbai and the order of conviction was passed and after returning to the Mahuva the settlement is arrived between us.

3. I say and submit that now as amount is received and the dispute is settled between us.

4. I say and submit that in the present application; the present application herein has prayed for Quashing and set aside of the impugned judgment and order dated 11.10.2019 passed by the Ld. 2nd Additional Judicial Magistrate First Class, Mahuva in Criminal case No. 1258 of 2018, whereby the applicant convicted for the offence under sec. 138 of N.I. Act and accordingly in order to undergo 1 year simple imprisonment and order to pay the fine amount as double of the cheque amount. I do not have any objection, if this Hon'ble court may be pleased to grant relief as prayed in the application. Therefore, I have no objection if the Hon'ble court may allow present application and quash and set aside the impugned Judgment arise out of complaint filed by me against the prese

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