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2026 Supreme(Guj) 1016

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
HASMUKH D. SUTHAR, J.
 
Atulkumar B. Joshi - Applicant
Versus 
State Of Gujarat & Anr. – Respondents 
Criminal Revision Application No. 205 of 2008 With Criminal MISC. Application (For Direction) No. 1 of 2017.
Decided On : 15-04-2026

Advocates Appeared:
For the Applicant : Bailable Warrant Served, Mr Vasants Shah
For the Respondents: Mr Amit C. Nanavati, Mr Rohan H. Raval, APP.

Once a cheque signature is admitted, statutory presumptions of liability arise. Revisional courts should not interfere with factual findings absent perversity. In financial disputes, settlement and payment of compensation justify the discretionary grant of probation to prioritize restorative justice over incarceration.

Headnote:(A) Negotiable Instruments Act - Section 138 - Statutory presumption - Effect of admitted signature - Once signature on a cheque is admitted, it is presumed to be issued towards a legally enforceable debt -

(B) Criminal Procedure Code - Sections 397 and 401 - Revisional Jurisdiction - Scope and Ambit - Revisional court should not re-appreciate evidence unless the findings of the lower courts are found to be totally perverse or arbitrary -

(C) Probation of Offenders Act - Section 4 - Benefit of probation - Upon amicable settlement and payment of compensation, the court may release the accused on probation of good conduct in cases of quasi-criminal nature -

(D) Offences and Penalties - Objective - Punishment in dishonour of cheque cases is intended to ensure payment and promote trust in financial instruments rather than mere retribution. (Paras 5, 7, 8, 9, 10)

Facts of the case:
The accused was convicted for the offence of dishonour of cheque and served with a sentence of imprisonment. The conviction was upheld by the appellate court. During the revision application stage, the accused settled the dispute with the complainant by making a payment of the outstanding amount. The court, considering the settlement, evaluated whether the conviction should be maintained alongside the benefit of probation.

Findings of Court:
The court held that after the admission of the signature on the cheque, the burden shifts to the accused to rebut the statutory presumption of a legally enforceable debt. The revisional court found no perversity in the findings of the trial court and observed that the objective of the legislation is to facilitate the recovery of dues. Given the settlement and payment, it is appropriate to maintain the conviction while extending the benefit of the probation of good conduct.

Issues: The main issues were the correctness of the conviction based on established facts, the scope of revisional interference with concurrent findings of fact, and the appropriateness of granting probation after a post-conviction settlement.

Ratio Decidendi: Where a signature on a cheque is admitted, statutory presumptions of liability prevail. Revisional jurisdiction is limited to correcting legal errors or perversity rather than re-evaluating evidence. In financial disputes, where the primary objective is compensation, settlement justifies substituting substantive incarceration with probation of good conduct.

Result: Conviction maintained; benefit of probation of good conduct granted upon execution of a bond. Application disposed of.

Table of Content
1. nature of case: revision against conviction for ni act dishonor offense. (Para 1 , 2)
2. parties argument: disputed evidence veracity and legal legality of sentencing orders. (Para 3 , 4)
3. statutory presumption of ni act, 138-139, upon admitted signatures. (Para 5 , 6)
4. limited scope of high court revisional jurisdiction under crpc 397/401. (Para 7 , 8)
5. settlement of dispute and exercise of discretion for probation. (Para 9 , 10)
6. final orders and sentencing converted to probation bond compliance. (Para 11 , 12 , 13 , 14)

JUDGMENT :

HASMUKH D. SUTHAR, J.

1) By way of present revision application under Sections 397 read with 401 of the Code of Criminal Procedure, 1973, the applicant has prayed for quashing and setting aside the judgment and order of conviction and sentence dated 05.11.2007 passed by the learned Judicial Magistrate First Class, Unjha, in Criminal Case No.968 of 2004, whereby, the trial Court has been pleased to hold the applicant guilty for the offence punishable under Section 138 of the Negotiable Instruments Act (which shall hereinafter be referred to as “NI Act” for short) and sentenced to undergo simple imprisonment of one year along with fine of Rs.5,000/- failing which to undergo further three months simple imprisonment and also directed to pay Rs.5,67,500/- as compensation to the complainant. The said order was assailed by way of filing Criminal Appeal No.96 of 2007, wherein, vide order dated 07.03.2008 passed by the learned Sessions Judge, Mehsana at Visnagar, the appeal came to be dismissed and the order of conviction and sentence has been confirmed. Hence, the present Revision Application is filed by the applicant-accused.

2) Brief facts of the case is that, the complainant is residing at village Kahoda, Taluka Unjha and is an agriculturist and also doing business, whereas the applicant is serving in Nova Company. The applicant used to come often to the shop of the complainant and in July, 2004, the applicant informed the complainant that he is required to pay Rs.6 lacs to one person within two days, but he does not have money. Therefore, the complainant gave Rs.5,67,500/- to the applicant, who assured to return the said amount within a month. Thereafter, as the said amount was not repaid by the applicant and upon demanding money back by the complainant, the applicant had given a cheque of Rs.5,67,500/- to the complainant with an assurance that it would be honored. Thereafter, the complainant deposited the said cheque in his bank on 20.10.2004. and on 29.10.2004, the said cheque was dishonoured for want of sufficient funds. The complainant therefore, served the petitioner - accused with notice through his advocate dated 03.11.2004 by Registered A.D. post and by U.P.C. The notice was served upon the petitioner, however, the applicant did not repay the amount. A complaint came to be registered under section 138 of the NI Act before learned JMFC Court, in which the applicant was convicted. The said conviction was challenged before the learned Sessions Court, Mahesana, by filing Criminal Appeal No.96/2007, which came to be dismissed vide order dated 07.03.2008.

3) Learned Advocate for the applicant has submitted that both the courts below have erred in not considering the fact that the complainant has come with a case as per the complaint that he gave Rs.5,67,500/- from the house whereas, in the deposition he has stated on oath that he withdrew the said amount from the Bank. This major contradiction in the oral as well as in the written complaint goes to the root of the case and raises serious doubt about the veracity of the complaint. Further, learned courts below have also erred in not considering the fact that there is not an iota of evidence on the record to show, suggest or establish that the complainant was having with him such a large amount of Rs.5,67,500/- at his residence at the relevant time nor there is any evidence to show that he withdrew the said amount from the Bank. In su

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