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2026 Supreme(Online)(Guj) 1413

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
M. R. Mengdey, J
JAYESH HARSHADBHAI MAKWANAV/sSTATE OF GUJARAT
R/SPECIAL CRIMINAL APPLICATION (QUASHING) NO. 3058 of 2026



Advocates:
For the Appellants/Petitioners: Dhruv Toliya
For the Respondents: K M Antani, Neel Kanabar

The High Court can exercise its inherent powers under Section 482 of the CrPC to quash a conviction and sentence order if the parties have amicably settled their financial disputes and the complainant no longer wishes to pursue the prosecution.

Headnote:The petitioner sought the quashing of a sentence order dated 21.11.2025 passed by the 6th Additional Chief Judicial Magistrate, Rajkot, in a case involving Section 25 of the Payment and Settlement Systems Act, 2007. The petitioner had been convicted and sentenced to six months of simple imprisonment and directed to pay compensation. The court noted that the parties had since reached an amicable settlement regarding the financial dispute. The primary issue was whether the conviction and sentence could be quashed given the settlement between the parties. The court observed that the complainant had filed a sworn affidavit confirming the receipt of the full settlement amount and expressed no objection to the quashing of the proceedings, reasoning that the grievance had been satisfied. The order of sentence dated 21.11.2025 passed by the learned 6th Additional Chief Judicial Magistrate, Rajkot in Criminal Case No.12814 of 2024 is hereby quashed and set aside. Rule is made absolute.

Table of Content
1. application for quashing of a sentence order under section 482 crpc. (Para 1 , 2 , 3)
2. amicable settlement of financial disputes and complainant's consent to quash proceedings. (Para 4 , 5)
3. quashing of conviction and sentence based on the settlement of the underlying dispute. (Para 6)

ORAL ORDER

1. Present application is preferred by the petitioner under Section 482 of the Code of Criminal Procedure, seeking quashing of order of sentence dated 21.11.2025 passed by the learned 6th Additional Chief Judicial Magistrate, Rajkot in Criminal Case No.12814 of 2024.

2. Heard learned Advocate for the petitioner and learned APP for the Respondent – State.

3. Rule. Learned APP waives service of notice for and on behalf of the respondent – State.

4. Learned Advocate for the petitioner has submitted that the matter has been amicably settled between the parties and they are now not willing to proceed with the complaint any further.

5. Leaned Advocate Mr. Neel Kanabar states that he has received instruction to appear on behalf of the respondent complainant and he may be permitted to file his Vakalatnama before the Registry. He further submitted that the Respondent No. 2 (Original Complainant), is present before this Court and has placed on record duly sworn in Affidavit dated 03.03.2026. The same is ordered to be taken on record. Learned Advocate has submitted that matter has been amicably settled between the parties and there is no objection if present application is allowed. The affidavit reads thus:

“I. Kiranbhai Rajeshkumar Sukhadiya, Son of Shri Rajeshkumar Sukhadiya, Aged: 39 years, Male, presently working as an Authorized Officer of HDFC Bank Ltd., having office at HDFC Bank Ltd., 4th Floor, "C" Wing, Sheetal West Park Imperia, Beside Ahmedabad One Mall, Near Vastrapur Lake, Vastrapur, Ahmedabad 380052, do hereby solemnly affirm and state on oath as under:

1. I am the Authorized Officer of Respondent No. 2, HDFC Bank Ltd., and I am well conversant with the facts and circumstances of the present case. I have been duly authorized by the Bank vide Board Resolution dated August 21, 2025, to represent the Bank in legal proceedings. I am well versed with the facts and circumstances of the present case and, therefore, I beg to file the present affidavit with a view to put an end to the proceedings arising out of the impugned proceedings. Copy of the official ID card issued to me by HDFC bank alongwith the resolution dated 21.08.2025 are annexed hereto and marked as "ANNEXURE-A1 COLLY

2 I say and submit that Respondent No.2 had filed a criminal complaint, being Criminal Case No. 12814 of 2024, before the Ld. Chief Judicial Magistrate Court at Rajkot against the Petitioner under Section 25 of the Payment and Settlement Systems Act, 2007. I say and submit that vide judgment and order dated 21.11.2025, the Ld. 6th Addl. Chief Judicial Magistrate, Rajkot, convicted the Petitioner and sentenced him to undergo simple imprisonment for 6 months and directed the payment of compensation.

3. I say and submit that during the pendency of the present proceedings, good sense has prevailed, and the Petitioner and the Respondent No. 2 Bank have amicably resolved the financial dispute. I say and submit that the Bank issued Settlement Letter No. 150138216022026 dated 16.02.2026 (Pg. No.38; Annexure-D Colly), agreeing to a full and final settlement for a sum of Rs. 2,50,000/- (Rupees Two Lakh Fifty Thousand Only). I state that the Petitioner has strictly complied with the terms of the settlement by depositing the entire agreed amount of Rs. 2,50,000/- in cash with the Respondent No. 2 Bank, as evidenced by the Bank's deposit slip dated 16.02.2026 (Pg. No.41; Annexure- D Colly). I state that consequently, the entire monetary claim of the Bank has been satisfied, and no dues remain outstanding.

4. I say and submit in view of the aforesaid amicable settlement and the receipt of the entire settlement amount

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