Criminal proceedings under Section 138 of the Negotiable Instruments Act may be quashed by the High Court if the parties have reached an amicable settlement, as continuing such proceedings would constitute an abuse of the process of law.

ORAL ORDER

1. Learned advocate Mr. K.H. Bhatt submits that he has instructions to appear on behalf of the respondent no.2 - complainant. He is permitted to file his vakalatnama. The 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 16.02.2026 passed by the learned Additional Judicial Magistrate First Class, Gandhinagar, in Criminal Case No. 2688 of 2025, 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. In the affidavit produced by the complainant at Annexure-B, to the application, he has categorically stated that he has received his dues and the dispute has been amicably resolved. 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. K.H. Bhatt waives service of notice of rule for and on behalf of the respondent no.2 – complainant.

6. The complainant, who is personally present in the Court, has categorically stated before this Court that the dispute has been resolved 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 affidavit filed by the complainant read thus :

“ 2. I further state on oath and solemnly affirm that, subsequent to the passing of the conviction judgment dated 16/02/2026 in Criminal Case No. 2688/2025, the present Petitioner and Respondent No. 2 have amicably resolved their disputes. In pursuance of the said settlement, the present petitioner has executed a duly registered Agreement to Sale (Banakhat) in favour of the complainant, which has been accepted by the parties as full and final settlement of the dispute in question.

3. I further state that, in view of the aforesaid amicable settlement, Respondent No. 2 (original complainant) has no objection if the present petition is allowed and the conviction judgment dated 16/02/2026 in Criminal Case No. 2688/2025 passed by the Learned Additional Judicial Magistrate First Class, Gandhinagar, for the alleged offence under Section 138 of the Negotiable Instruments Act, is quashed and set aside by this Hon'ble Court in the interest of Justice.”

8. Thus, it appears from the aforesaid that to continue further with the proceedings pursuant to the impugned judgment and order would be a futile exercise and the same would amount to abuse of process of law.

9. Having heard learned counsel appearing for the respective parties, as well as considering the facts and circumstances arising out of the present application and also taking into consideration the decisions rendered in the cases of Gian Singh Vs. State of Punjab & Anr., reported in (2012) 10 SCC 303, Madan Mohan Abbot Vs. State of Punjab , reported in (2008) 4 SCC 582, Nikhil Mercha