The court held that offences under the Negotiable Instruments Act are compoundable at any stage; however, settlements reached at a belated stage may attract costs payable to the Legal Services Authority, while the accused may still be granted benefits under the Probation of Offenders Act.

[1.0] Considering the issue involved in the present applications and with consent of the learned advocates appearing for the respective parties as well as considering the fact that the dispute amongst the applicants and original complainant has been resolved amicably, present applications are taken up for final disposal forthwith as alleged offence is bailable and compoundable.

[2.0] By way of present applications under Section 397 read with Section 401 of the Code of Criminal Procedure, 1973 (For short “CrPC”), the applicants have prayed for quashing and setting aside the judgment and order dated 17.02.2018 passed by the learned Chief Judicial Magistrate, Vapin in Criminal Case Nos.2940/2016 and 2192/2016 as well as the order dated 09.12.2021 passed by the learned 3rd Additional Sessions Judge, Valsad, at Vapi in Criminal Appeal Nos.80 of 2020 and 79/2020.

[3.0] Learned advocate for the applicants has taken this Court through the factual matrix arising out of the present applications. 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 applications deserves consideration.

[4.0] 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.

[5.0] Learned advocate for original complainant has reiterated the contentions raised by the learned advocate for the applicants and also submitted that the original complainant has filed an afÏdavit stating therein that the complainant has settled the dispute with the applicants and has no objection if the conviction and sentence recorded by the learned trial Court and upheld by the learned appellate Court is quashed and set aside in both the cases. It is therefore submitted that the present applications may be allowed.

[6.0] At the outset, learned advocates for the respective parties have jointly submitted that matter is settled and now the original complainant does not want to pursue further the litigation as complainant and applicants have settled the matter. Upon instructions, it is submitted by the learned advocate for the complainant that the applicants have deposited in total Rs.7,50,000/- towards both the cases and now the dispute between him and applicants having been resolved, he has requested to direct the learned Sessions Court, Valsad to disburse the said amount to the complainant.

[7.0] Considering the fact that the dispute is settled between the parties and original complainant is satisfied with total Rs.7,50,000/- deposited by the applicants before the learned appellate Court and as the offence is compoundable one at any stage under Section 147 of the NI Act. But, as accused has settled the dispute at belated stage before this Court, in view of the decision rendered in the case of Damodar S. Prabhu Vs. Sayed Babalal H , reported in 2010(5) SCC 663, accused is required to be saddled with cost and as the accused has already made the payment/deposited the impugned amount, in view of the judgment of the Hon’ble Supreme Court in the case of Sanjabij Tari Vs Kishore S. Borcar , Neutral Citation 2025 INSC 1158 maintaining the conviction this Court is inclined to extend the benefit under the Probation of Offenders Act, 1958, to the applicants-accused.

[8.0] Resultantly, present revision applications are allowed . The judgment and order dated 17.02.2018 passed by the learned Chief Judicial Magistrate, Vapi in Criminal Case Nos.2940/2016 and 2192/2016 as well as the order dated 09.12.2021 passed by the learned 3rd Additional Sessions Judge, Valsad, at Vapi in Criminal Appeal Nos.80 of 2020 and 79/2020 are hereby quashed and set aside with respect to the applicants – accused subject to deposit of 7.5% of the of settlement amount before the Gujarat State Legal Services Authority.

[8.1] Th