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High Court of Gujarat

THAKOR PRAKASHJI @ LALIYO BABUJIversusSTATE OF GUJARAT

Disposal
58-RULE ISSUED & RULE ABSOLUTE/ALLOWED @FH

Holding

The court quashed and set aside the judgment and sentence of conviction under Section 138 of the Negotiable Instruments Act, holding that the matter was settled and further prosecution would be an abuse of process.

Summary

The accused filed an application under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 seeking to quash a conviction and sentence dated 12‑09‑2024 under Section 138 of the Negotiable Instruments Act. The original complainant, Somabhai Joitaram Patel, appeared in court and submitted an affidavit stating that the dispute had been amicably settled, the cheque amount of Rs 40,000 was paid in cash, and he had no objection to the judgment being set aside. Both parties and their counsel consented to the quashing, and the court held that proceeding with the conviction would be futile and amount to an abuse of process. Relying on precedent, the court exercised its inherent powers to quash the judgment and all consequential proceedings. The court also ordered the applicant to deposit 7.5% of the cheque amount as costs with the District Legal Services Authority.

Issues considered

  • Whether a criminal conviction under Section 138 of the Negotiable Instruments Act can be quashed on the basis of an amicable settlement and the complainant's consent.
  • Whether Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 empowers the court to set aside the judgment in such circumstances.
  • Whether continuation of the proceedings would constitute an abuse of process of law.

Legislation cited

Subjects

settlementquashSection 138 NI Actcriminal procedureabuse of processconsentBharatiya Nagarik Suraksha SanhitaSection 528compromise

Judgment

      R/CR.MA/6943/2026                            ORDER DATED: 17/04/2026




             IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

R/CRIMINAL MISC.APPLICATION (FOR CONSENT QUASHING) NO. 6943
                           of 2026
==========================================================
                      THAKOR PRAKASHJI @ LALIYO BABUJI
                                   Versus
                             STATE OF GUJARAT
==========================================================
Appearance:
MR KAVAN K PATEL(11303) for the Applicant(s) No. 1
MR. TIRTHRAJ PANDYA, APP for the Respondent(s) No. 1
==========================================================

     CORAM:HONOURABLE MR. JUSTICE VIMAL K. VYAS

                               Date : 17/04/2026

                                ORAL ORDER

1.      Learned advocate Mr. P.H. Gadhvi appears and submits
that he has instructions to appear on behalf of the respondent
no.2 – complainant. He is permitted to file his appearance.
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 12.09.2024 passed by the learned 7 th Additional Judicial
Magistrate First Class, Mahesana, in Criminal Case No. 7741 of
2021, 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 -

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     R/CR.MA/6943/2026                         ORDER DATED: 17/04/2026




Somabhai Joitaram Patel, the Partner and Administrator of Shri
Janvi Cement Trading Company, is personally present before
this Court. The complainant has also filed an affidavit, which is
annexed as Annexure ‘C’ to the application. In the said affidavit,
the complainant has categorically stated that he has no
grievance against the applicant as he has received his dues. He
has further submitted that the dispute has been amicably
resolved with the applicant and there is no ill-will or any
grievance amongst them.


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 the
learned advocates appearing for the respective parties, the
present application is taken up for final disposal.


5.     RULE returnable forthwith. Learned APP Mr. Tirthraj
Pandya waives service of notice of rule for and on behalf of the
respondent no.1 – State and learned advocate Mr. P.H. Gadhvi
Khamar waives service of notice of rule for and on behalf of the
respondent no.2 – complainant.


6.     The complainant - Somabhai Joitaram Patel, the Partner
and Administrator of Shri Janvi Cement Trading Company, who
is personally present in the Court, has categorically stated
before this Court that he has no objection if the application is
allowed and the impugned judgment and order of conviction and


                              Page 2 of 5
     R/CR.MA/6943/2026                               ORDER DATED: 17/04/2026




sentence dated 12.09.2024 passed by the learned 7th Additional
Judicial Magistrate First Class, Mahesana, in Criminal Case No.
7741 of 2021, is quashed and set-aside.


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


8.      The relevant paragraphs of the affidavit filed by the
complainant –            Somabhai Joitaram Patel, the Partner and
Administrator of Shri Janvi Cement Trading Company, read
thus:
        “6.    I say and submit that subsequent to the above event
        petitioner approached me and told me to settle the entire issue
        by stating that he will pay entire amount of cheque ile Rs.
        40,000/- to me. The amount of cheque ice Rs. 40,000/-was
        received by me in cash and after receiving the said amount I
        being original complainant affirmed one settlement agreement
        with the present applicant wherein I have specifically accepted
        the said cheque amount of Rs. 40,000/- Was paid to me by the
        present petitioner by executing a notarized agreement on
        10.03.2026 (Annexed at -Annexure B). It is further submitted that
        in view of the above complainant herein, Res no. 2 has no
        objection if the impugned Judgment and order dated 12.09.2024
        passed by the learned 7th Additional Judicial Magistrate First
        Class, Mehsana in Criminal Case No. 7741 of 2021 is quashed
        and set aside by this Hon'ble court by recording his consent.

        7.     I say and submit that the aforementioned Complaint was
        lodged by me in heat of the moment However now due to
        amicable settlement entered between the petitioner and I being
        respondent no. 2 the grievance between parties has been
        resolved. Therefore, I do not intend to pursue the
        aforementioned impugned judgment/order against the present
        petitioner. Hence if this Hon'ble court deems fit to quash the
        impugned order/judgment then I being original complainant is


                                   Page 3 of 5
     R/CR.MA/6943/2026                                ORDER DATED: 17/04/2026




       not having any objection to it and by way of the present affidavit
       I give my consent to quash the said Judgment and order dated
       12.09.2024 passed by the learned 7th Additional Judicial
       Magistrate First Class, Mehsana in Criminal Case No. 7741 of
       2021.

       8.     I further say and submit that I being original complainant
       and the present applicant being original accused has paid entire
       cheque amount of Rs 40.000/- to me and we have also entered
       into settlement agreement and I state that no one has forced me
       to enter into such settlement with the present applicant (Orig
       Accused) and I am filing this present affidavit with voluntarily
       with my free wish.

       9.     On the above facts and circumstances, I say and submit
       that I have entered into a compromise with the petitioner and I
       have received entire amount of cheque amount i.e. Rs 40,000/-.
       Hence I don't have any objection to Judgment and order dated
       12.09.2024 passed by the learned 7th Additional Judicial
       Magistrate First Class, Mehsana in Criminal Case No. 7741 of
       2021 is quashed and set-aside by this Hon'ble Court by recording
       my consent for the same. Further, I don't have any objection to
       quashing consequential proceedings and issuance of Non
       Bailable warrant or arrest warrant if any after passing of the said
       order is also quashed by this Hon'ble court by recording my
       consent.”


9.     Having heard learned advocates appearing for the
respective parties as well as considering the facts and
circumstances arising out of the present application and taking
into consideration the decisions rendered in the cases of Gian
Singh vs. State of Punjab & Another, reported in (2012) 10
SCC 303, Madan Mohan Abbot vs. State of Punjab, reported
in (2008) 4 SCC 582, Nikhil Merchant vs. Central Bureau of
Investigation & Another, reported in (2009) 1 GLH 31, Manoj
Sharma vs. State & Others, reported in (2009) 1 GLH 190,
and Narinder Singh & Others vs. State of Punjab &
Another, reported in (2014) 2 Crime 67 (SC) as well as State


                                   Page 4 of 5
       R/CR.MA/6943/2026                                                ORDER DATED: 17/04/2026




 of Haryana vs. Bhajanlal, reported in AIR 1992 SC 604, it
 appears that continuing 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. Hence,
 to secure the ends of justice, the impugned judgment and order
 as well as all other consequential proceedings arising pursuant
 thereto are required to be quashed and set-aside in exercise of
 the powers conferred 528 of the Bharatiya Nagarik Suraksha
 Sanhita, 2023.


 10.      In the result, the application is allowed. The judgment and
 order of conviction and sentence dated 12.09.2024 passed by
 the learned 7th Additional                       Judicial Magistrate First Class,
 Mahesana, in Criminal Case No. 7741 of 2021, for the offence
 punishable under Section 138 of the Negotiable Instruments
 Act, as well as all other consequential proceedings arising
 pursuant thereto are hereby ordered to be quashed and set-
 aside qua the applicant.


 11.      In view of the ratio laid down in the case of Sanjabij Tari
 Vs. Kishore S. Borcar and Another [2025 INSC 1158], the
 applicant is directed to deposit 7.5% of the cheque amount, by
 way of costs, with the District Legal Services Authority,
 Mahesana, within a period of two weeks from the date of this
 order.
 12.      Rule made absolute. Direct service is permitted.



                                                                             (VIMAL K. VYAS, J)
 AMAR SINGH

Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: AMAR SINGH(HC01081), PRIVATE SECRETARY, at High Court of Gujarat on 17/04/2026 18:22:27
                                               Page 5 of 5


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