Case Note & Summary
The applicant, Thakor Dineshbhai Dharamsinhbhai, filed a Criminal Revision Application before the Gujarat High Court challenging his conviction under Section 138 of the Negotiable Instruments Act, 1881. The case originated from Criminal Case No. 9887/2016 before the 2nd Add. Chief Judicial Magistrate, Mahesana, who convicted the applicant on 29/01/2019. The applicant appealed to the Sessions Court in Criminal Appeal No. 31 of 2019, which was dismissed on 09/08/2021. The applicant then approached the High Court seeking quashing of both the conviction and the appellate order. During the proceedings, the parties informed the Court that they had amicably resolved the dispute. The original complainant, HDFC Bank, through its authorized representative Mr. Himanshu Kadiya, filed an affidavit confirming the settlement and was personally present before the Court. The complainant declared that the dispute was resolved and no grievance remained. The learned advocate for the applicant and the complainant supported the settlement, while the State opposed the application citing the seriousness of the offence. The Court, after verifying the settlement and the complainant's consent, held that the offence under Section 138 of the NI Act is compoundable and the settlement warrants quashing of the conviction. The Court allowed the revision application, quashed the judgments of the lower courts, and acquitted the applicant of all charges.
Headnote
A) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Compounding of Offence - Settlement between parties - The applicant was convicted under Section 138 of the NI Act. The parties amicably resolved the dispute and the complainant filed an affidavit confirming the settlement. The Court, considering the settlement and the complainant's presence, quashed the conviction and set aside the judgments of the lower courts. Held that the offence under Section 138 is compoundable and the settlement warrants quashing of conviction (Paras 1-4).
Issue of Consideration
Whether the conviction under Section 138 of the Negotiable Instruments Act, 1881 can be quashed on the basis of an amicable settlement between the parties?
Final Decision
The Court allowed the revision application, quashed and set aside the judgment and order dated 09/08/2021 passed by the 2nd Add. Sessions Judge in Criminal Appeal No. 31 of 2019 and the order dated 29/01/2019 passed by the 2nd Add. Chief Judicial Magistrate, Mahesana in Criminal Case No. 9887/2016. The applicant was acquitted of all charges.
Law Points
- Compounding of offence under Section 147 of Negotiable Instruments Act
- 1881
- Settlement between parties
- Quashing of conviction
Case Details
2026 LawText (GUJ) (03) 334
R/Criminal Revision Application (Against Conviction - Negotiable Instrument Act) No. 660 of 2021
Mittal N Patel, P M Dave, Rohan Raval
Thakor Dineshbhai Dharamsinhbhai
The State of Gujarat & Anr.
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Nature of Litigation
Criminal Revision Application against conviction under Section 138 of the Negotiable Instruments Act, 1881.
Remedy Sought
Quashing and setting aside the judgment and order dated 09/08/2021 passed by the 2nd Add. Sessions Judge in Criminal Appeal No. 31 of 2019 and the order dated 29/01/2019 passed by the 2nd Add. Chief Judicial Magistrate, Mahesana in Criminal Case No. 9887/2016.
Filing Reason
The applicant was convicted under Section 138 of the NI Act and his appeal was dismissed. He sought revision before the High Court.
Previous Decisions
The trial court convicted the applicant on 29/01/2019 in Criminal Case No. 9887/2016. The appellate court dismissed the appeal on 09/08/2021 in Criminal Appeal No. 31 of 2019.
Issues
Whether the conviction under Section 138 of the Negotiable Instruments Act, 1881 can be quashed on the basis of an amicable settlement between the parties?
Submissions/Arguments
Learned advocate for the applicant submitted that the parties have amicably resolved the dispute and the application deserves to be considered.
Learned APP opposed the application citing seriousness of the offence.
Learned advocate for the original complainant reiterated the applicant's contentions and relied on the affidavit of the authorized person of HDFC Bank confirming the settlement.
Ratio Decidendi
The offence under Section 138 of the Negotiable Instruments Act, 1881 is compoundable under Section 147 of the Act. When the parties have amicably settled the dispute and the complainant confirms the settlement, the conviction can be quashed to promote settlement and reduce litigation.
Judgment Excerpts
By way of the present application, the applicant has sought the following relief:
At the outset, it is submitted that the parties have amicably resolved the dispute.
Learned advocate for original complainant has reiterated the contentions raised by the learned advocate for the applicant.
On inquiry made by the Court, original complainant has declared before this Court that the dispute between the applicant and the original complainant is resolved and therefore, now the grievance stands
Procedural History
The trial court convicted the applicant under Section 138 NI Act on 29/01/2019. The applicant appealed to the Sessions Court, which dismissed the appeal on 09/08/2021. The applicant then filed a Criminal Revision Application before the High Court on an unspecified date. The High Court heard the matter and passed judgment on 17/03/2026.
Acts & Sections
- Negotiable Instruments Act, 1881: 138, 147
