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2025 Supreme(Online)(Kar) 15462

KARNATAKA HIGH COURT
Shivashankar Amarannavar, J
Suresh Rai – Appellant
Versus
Sri Gokulam Chits and Finance Co. Pvt Ltd. – Respondent
CRIMINAL REVISION PETITION No. 1516 OF 2016 | CRIMINAL REVISION PETITION No. 1517 OF 2016



Advocates:
For the Appellants/Petitioners: Sri S Rajashekar
For the Respondents: Sri H K Singh

Amicable settlements in criminal cases can lead to the dismissal of revision petitions and the acquittal of the accused.

Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 - Proceedings initiated for non-payment of chit amount - Parties amicably settled the dispute for a total sum and consented to withdraw the amount deposited in trial court - Revision petitions allowed and convinction set aside. (Para 6)

(B) Settlement - The parties agreed to resolve the matter through negotiation instead of further litigation, leading to an amicable resolution of the issues at hand. (Paras 1, 3, 5)

Facts of the case:
The Revision Petitioners were convicted under Section 138 of the N.I. Act for failure to repay chit amounts, but during the proceedings, the parties negotiated and arrived at a settlement.

Findings of Court:
In view of the amicable settlement, the original conviction and order of sentence are set aside, and the petitioners are acquitted of the charges.

Issues: The primary issue was the settlement of disputes relating to non-payment of chit amounts and the resulting implications for prior judgments.

Ratio Decidendi: The court emphasized the importance of amicable settlements in criminal proceedings, asserting that parties can resolve disputes without further litigation.

Result: Revision petitions dismissed as settled.

Table of Content
1. parties amicably settled their disputes. (Para 2)

ORAL ORDER

Learned counsel for the petitioner files a memo. The memo reads thus:

It is submitted that the Revision Petitioner and the respondent have amicably settled the matter and the respondent may be permitted to withdraw the amount deposited in the trial Court by the petitioner. Hence, the criminal revision petition may be allowed in terms of the joint memo.

HC-KAR Learned counsel for the respondent has filed memo in Crl.R.P.No.1517/2016. The memo reads thus:

“1.That the above Criminal Revision Petition is filed assailing the order dated 28.10.2016 passed in Criminal Appeal No.270/2014 on the file of the Sessions Judge, Dakshina Kannada, Manglauru confirming the judgment of conviction and order of sentence dated 28.10.2014 passed in C.C.No.236/2014 on the file of JMFC (IV Court), Mangaluru.

2. It is submitted that the Revision Petitioner is guaranter to her husband Suresh Rai who had availed chit amount of Rs.5,00,000/- in Chit Group No.G2H/0394/KDM/10 from the respondent and also her husband Suresh, who is the Revision Petitioner in Criminal Revision Petition No.1516/2016 had availed chit amount of Rs.5,00,000/- in Chit Group No.G2H/0394/KDM/11 from the respondent. It is further submitted that alleging that the Revision Petitioner has not repaid the chit amount, the respondent initiated proceedings under Section 138 of the N.I.Act before the JMFC (IV Court), Mangalore in C.C.No.236/2014 for Rs.6,20,270/- It is submitted that during the pendency of the proceedings before the learned Magistrate, the Revision Petitioner has paid sum of Rs.1,45,977/-. The learned Magistrate by judgment dated 28.10.2014 convicted the Revision Petitioner for HC-KAR the offence punishable under Section 138 of N.I.Act and sentenced her to pay a fine of Rs.4,76,747/-.

3. It is further submitted that challenging the judgment of conviction and order of sentence, the Revision Petitioner preferred Criminal Appeal No.270/2014 on the file of the IV Additional District and Sessions Judge, Mangalore, Dakshina Kannada. It is further submitted that during the pendency of the said Criminal Appeal, the Revision Petitioner herein has deposited a sum of Rs.1,43,024/- before the trial Court. Thereafter, the Sessions Judge passed an order dated 28.10.2016 dismissing the Criminal Appeal and confirming the judgment of conviction and sentence passed by the learned Magistrate.

4. Challenging the order dated 28.10.2016 passed by the learned Sessions Judge and the judgment and order of sentence dated 28.10.2014 passed by the learned Magistrate, the Revision Petitioner has preferred the present Revision Petition. It is submitted that subsequently, pursuant to the order passed by this Hon’ble Court, the Revision Petitioner has deposited a sum of Rs.21,300/- before the trial Court.

5. It is further submitted that during the pendency of the above Criminal Revision Petition, the parties have decided to settle the dispute amicably relating to both the cases for a total sum of Rs.7,50,000/- and out of the HC-KAR aforesaid settlement amount, the Revision Petition has already paid a sum of Rs.4,00,000/- to the respondent. It is further submitted that the Revision Petitioner has deposited a total sum of 1,64,324/- during the pendency of the case has to be paid to the Respondent and Respondent has issued a letter dated 09.04.2025 to that effect. Balance amount of Rs.7,500/- is paid to the respondent on 19.06.2025. Copy of the letter dated 09.04.2025 is produced herewith for the kind perusal of this Hon’ble Court.

6. It is further agreed between the parties that the respondent is at liberty to withdraw the amount in deposit made by the Revision Petitioner and the petitioner in the connected case pursuant to the order passed by the learned Sessions Judge in Criminal Appeal No.270/2014 and also pursuant to the order passed by this Hon’ble Court in the instant Revision Petition and adjust the same to the chit amount and

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