Case Note & Summary
The applicant-accused was convicted by the learned 9th Additional Chief Judicial Magistrate, Vadodara in Criminal Case No.15001 of 2017 for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 and sentenced to simple imprisonment for two years and to pay compensation of Rs.7,50,000/- to the complainant, with default sentence of six months. The appeal before the learned 8th Additional Sessions Judge, Vadodara in Criminal Appeal No.13 of 2020 was dismissed on 30.08.2022, confirming the conviction and sentence. The accused then filed the present revision application under Sections 397 read with 401 of the Code of Criminal Procedure, 1973. During the pendency of the revision, the applicant deposited the entire cheque amount. The court noted that the offence under Section 138 NI Act is quasi-criminal in character and compoundable, and the punishment is not a means of retribution but to ensure payment of money and promote credibility of cheques. The court found no perversity in the concurrent findings of the trial court and appellate court and held that it is not open for the revisional court to re-appreciate evidence. However, in view of the full deposit of the cheque amount, the court modified the sentence: the conviction was upheld, but the sentence of imprisonment was set aside and substituted with a fine of Rs.7,50,000/-, which was already deposited. The court directed that the fine amount be paid to the complainant as compensation under Section 357(1) CrPC. The revision application was partly allowed.
Headnote
A) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Sentence Modification - Offence under Section 138 NI Act is quasi-criminal and compoundable - Once the entire cheque amount is deposited, the sentence of imprisonment can be substituted with fine - The revisional court cannot re-appreciate evidence in absence of perversity - Held that the conviction is upheld but the sentence of imprisonment is modified to fine (Paras 1-4).
Issue of Consideration
Whether the conviction and sentence under Section 138 of the Negotiable Instruments Act, 1881 should be set aside or modified in revision when the entire cheque amount has been deposited by the accused.
Final Decision
The revision application is partly allowed. The conviction of the applicant under Section 138 of the Negotiable Instruments Act, 1881 is upheld. However, the sentence of simple imprisonment for two years is set aside and substituted with a fine of Rs.7,50,000/- (which has already been deposited). The fine amount shall be paid to the complainant as compensation under Section 357(1) of the Code of Criminal Procedure, 1973. The default sentence of six months is also set aside.
Law Points
- Section 138 NI Act is quasi-criminal
- compoundable
- punishment is not retributive but to ensure payment
- once entire cheque amount deposited
- sentence can be modified to fine
- revisional court cannot re-appreciate evidence in absence of perversity.
Case Details
2026 LawText (GUJ) (03) 582
R/Criminal Revision Application (Against Conviction - Negotiable Instrument Act) No. 935 of 2022
Mr. Piyush B Trivedi, Mr. Radheshyam K Dave for the applicant; Mr. Rohan Raval, APP for respondent No.2; Vasimraja A Kureshi for respondent No.1
Jayendrasinh Natvarsinh Solanki
Indravadan Kantibhai Patel & 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 12.12.2019 passed by the learned 9th Additional Chief Judicial Magistrate, Vadodara in Criminal Case No.15001 of 2017, and the appellate order dated 30.08.2022 passed by the learned 8th Additional Sessions Judge, Vadodara in Criminal Appeal No.13 of 2020.
Filing Reason
The applicant-accused was convicted and sentenced for dishonour of cheque under Section 138 NI Act; the appeal was dismissed; the applicant deposited the entire cheque amount during the pendency of the revision.
Previous Decisions
Trial court convicted and sentenced the applicant on 12.12.2019; appellate court dismissed the appeal on 30.08.2022.
Issues
Whether the conviction and sentence under Section 138 NI Act should be set aside or modified when the entire cheque amount has been deposited by the accused.
Whether the revisional court can re-appreciate evidence in the absence of perversity.
Submissions/Arguments
Learned advocate for the applicant submitted that during the pendency of the revision, the applicant has deposited the entire amount. The offence under Section 138 NI Act is quasi-criminal and compoundable; punishment is not a means of retribution but to ensure payment of money and promote credibility of cheques.
Ratio Decidendi
The offence under Section 138 NI Act is quasi-criminal and compoundable; the punishment is not retributive but to ensure payment of money. Once the entire cheque amount is deposited, the sentence of imprisonment can be substituted with fine. The revisional court cannot re-appreciate evidence in the absence of perversity.
Judgment Excerpts
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 and to promote credibility of cheques as a trustworthy substitute for cash payment.
In absence of any perversity and no ground is found to upset the concurrent findings of the learned trial Court and Appellate Court and it is not open for Revisional Court to re-appreciate evidence.
Procedural History
The trial court convicted the applicant on 12.12.2019 in Criminal Case No.15001 of 2017. The applicant filed Criminal Appeal No.13 of 2020, which was dismissed on 30.08.2022 by the learned 8th Additional Sessions Judge, Vadodara. The applicant then filed the present revision application under Sections 397 read with 401 CrPC.
Acts & Sections
- Negotiable Instruments Act, 1881: 138
- Code of Criminal Procedure, 1973: 397, 401, 357(1)
