Case Note & Summary
The applicant, Bhupesh Jayantilal Shah, was convicted by the Metropolitan Magistrate, Court No.6, Ahmedabad in Criminal Case No.245 of 2009 for the offence under Section 138 of the Negotiable Instruments Act, 1881 (NI Act) and sentenced to simple imprisonment of one year and to pay a fine of Rs.1,28,583/- (the cheque amount). The applicant appealed to the Additional City Sessions Judge, Ahmedabad in Criminal Appeal No.198 of 2009, which was dismissed on 20.11.2009, confirming the conviction and sentence. Thereafter, the applicant filed two revision applications under Sections 397 read with 401 of the Code of Criminal Procedure, 1973 before the High Court of Gujarat. During the pendency of the revision applications, the applicant deposited the entire cheque amount. The learned advocate for the applicant submitted that since the amount has been deposited and the offence under Section 138 NI Act is quasi-criminal and compoundable, the punishment is not a means of retribution but to ensure payment and promote credibility of cheques. The court considered that no perversity was found in the concurrent findings of the trial court and appellate court, and therefore the conviction was upheld. However, in view of the deposit of the cheque amount, the sentence of imprisonment was modified to fine only, with a default sentence of simple imprisonment for one month. The revision applications were partly allowed accordingly.
Headnote
A) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Sentence Modification - The applicant was convicted for dishonour of cheque and sentenced to one year imprisonment and fine of cheque amount. During revision, the applicant deposited the cheque amount. The High Court held that since the offence is quasi-criminal and compoundable, and the amount has been deposited, the sentence of imprisonment is not necessary. The conviction was upheld but the sentence was modified to fine only, with default sentence. (Paras 1-3)
Issue of Consideration
Whether the conviction and sentence under Section 138 of the Negotiable Instruments Act, 1881 should be quashed or modified in revision after the applicant deposited the cheque amount during pendency.
Final Decision
The revision applications are partly allowed. The conviction of the applicant under Section 138 of the Negotiable Instruments Act, 1881 is upheld. However, the sentence of imprisonment is modified to fine only. The applicant is sentenced to pay a fine of Rs.1,28,583/- (already deposited) and in default of payment of fine, to undergo simple imprisonment for one month.
Law Points
- Section 138 NI Act is quasi-criminal and compoundable
- punishment is not retributive but to ensure payment
- deposit of cheque amount during pendency justifies reduction of sentence to fine only
Case Details
2026 LawText (GUJ) (03) 983
R/Criminal Revision Application No. 762 of 2009 with R/Criminal Revision Application No. 763 of 2009
Kurven K Desai, HCLS Committee for applicant; Aftabhusen Ansari, SM Shukla for respondent No.1; Rohan Raval, APP for respondent No.2
Ashokkumar P Gupta & Anr.
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Nature of Litigation
Criminal revision application against conviction and sentence under Section 138 of the Negotiable Instruments Act, 1881.
Remedy Sought
Quashing and setting aside the judgment and order of conviction and sentence dated 31.07.2009 passed by the Metropolitan Magistrate, Court No.6, Ahmedabad in Criminal Case No.245 of 2009, and the appellate order dated 20.11.2009 passed by the Additional City Sessions Judge, Ahmedabad in Criminal Appeal No.198 of 2009.
Filing Reason
The applicant was convicted for dishonour of cheque and sentenced to one year imprisonment and fine of Rs.1,28,583/-. The appeal was dismissed. Hence, revision applications were filed.
Previous Decisions
Trial court convicted and sentenced the applicant on 31.07.2009. Appellate court dismissed the appeal on 20.11.2009.
Issues
Whether the conviction and sentence under Section 138 NI Act should be quashed or modified in revision after the applicant deposited the cheque amount during pendency.
Submissions/Arguments
The applicant's advocate submitted that during pendency, the applicant deposited the cheque amount. The offence under Section 138 NI Act is quasi-criminal and compoundable, and punishment is not retributive but to ensure payment. No perversity found in concurrent findings.
Ratio Decidendi
Since the offence under Section 138 NI Act is quasi-criminal and compoundable, and the cheque amount has been deposited during the pendency of the revision, the sentence of imprisonment is not necessary and can be modified to fine only, while upholding the conviction.
Judgment Excerpts
By way of present revision applications 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 31.07.2009...
Learned Advocate for the applicant has submitted that during the pendency of the present revision application, the applicant has deposited the cheque amount.
In view of above, once the amount being deposited and as the offence under Section 138 of the NI Act is quasi-criminal in character and is compoundable and punishment under the NI Act is not a means of seeking retribution but is more a means to ensure payment of money...
Procedural History
The trial court convicted the applicant on 31.07.2009. The applicant appealed to the Additional City Sessions Judge, Ahmedabad, which dismissed the appeal on 20.11.2009. The applicant then filed revision applications before the High Court of Gujarat on an unspecified date. During pendency, the applicant deposited the cheque amount. The High Court partly allowed the revision on 23.03.2026.
Acts & Sections
- Negotiable Instruments Act, 1881: 138
- Code of Criminal Procedure, 1973: 397, 401
