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High Court of Gujarat

AMIT CHANDRAKANT PATELversusSTATE OF GUJARAT

Disposal
56-DISPOSED AT ADMISSION STAGE

Holding

The conviction under Section 138 of the Negotiable Instruments Act was quashed as the offence was compounded with the complainant's consent, in accordance with Section 147 of the NI Act.

Summary

The petitioner filed a criminal revision application challenging his conviction and sentence under Section 138 of the Negotiable Instruments Act, which had been affirmed by the Sessions Court. During the pendency of the proceedings, the parties settled the dispute amicably, and the complainant executed an affidavit confirming receipt of the agreed amount and consented to compound the offence. The court accepted the affidavit, noted that Section 147 of the NI Act, as interpreted in Damodar S. Prabhu v. Sayed Baba Lal, gives overriding effect to Section 320(1) of the CrPC, and held that the offence could be compounded with the aggrieved's consent. Consequently, the conviction and sentence were quashed and the petitioner was acquitted. The revision application was allowed and the rule was made absolute.

Issues considered

  • Whether a conviction under Section 138 of the Negotiable Instruments Act can be set aside on the basis of an amicable settlement and the complainant's consent to compound the offence.
  • Whether Section 147 of the NI Act overrides the provisions of Section 320(1) of the Code of Criminal Procedure in matters of compounding offences.

Legislation cited

Subjects

Compounding of offenceNegotiable Instruments ActSection 138Section 147Criminal revisionAcquittalSettlement

Judgment

     R/CR.RA/1162/2026                           ORDER DATED: 23/04/2026




            IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

     R/CRIMINAL REVISION APPLICATION (AGAINST CONVICTION -
          NEGOTIABLE INSTRUMENT ACT) NO. 1162 of 2026

==========================================================
                         AMIT CHANDRAKANT PATEL
                                  Versus
                         STATE OF GUJARAT & ANR.
==========================================================
Appearance:
MR MAYUR DHOTARE for MR MITESH S CHAROLIYA(19058) for the
Applicant(s) No. 1
MR PRANAV DHAGAT, APP for the Respondent(s) No. 1
MR APURVA UPADHYAY for the Respondent(s) No. 2
==========================================================

 CORAM:HONOURABLE MS. JUSTICE GITA GOPI

                             Date : 23/04/2026

                                 ORDER


1.     RULE. Learned advocates waive service of Rule on behalf of
       the respective respondents.


2.     Challenge in this Revision Application is given to the judgment
       and order of conviction and sentence dated 31.8.2023 passed
       by the learned 17th Additional Chief Judicial Magistrate,
       Vadodara in Criminal Case no. 6865/19, which was confirmed
       by the judgment and order dated 15.11.2025 passed by the
       learned 12th Additional Sessions Judge, Vadodara in Criminal
       Appeal no. 520/23.


3.     Learned advocate for the applicant submitted that during the
       pendency of the proceedings, parties have settled the
       disputes amicably outside the Court and that there remains
       no grievance between them.


                                 Page 1 of 3
     R/CR.RA/1162/2026                          ORDER DATED: 23/04/2026




4.     Learned advocate for respondent no.2 – original complainant
       has placed on record the affidavit of settlement filed by the
       respondent no.2–original complainant and stated that the
       complainant has received the amount as agreed between the
       parties and the complainant does not want to pursue the
       matter now in view of amicable settlement and has given
       consent for compounding the offence. The same is taken on
       record. Today, respondent no.2 is present before this Court
       and the respondent no.2 has affirmed the contents of the
       affidavit and is identified by learned advocate for respondent
       no.2. Learned advocate seeks permission to file Vakalatnama.
       Let Vakalatnama be accepted.


5.     Since the complainant has given consent for compounding the
       offence, keeping in mind the object of Section 147 of the NI
       Act, which is an enabling provision which provides for
       compounding the offence and may require the consent of the
       aggrieved for compounding the offence, however, the specific
       provision under Section 147, inserted by way of amendment
       towards special law, would give overriding effect to sub-
       section (1) of Section 320 of the Code of Criminal Procedure,
       1973 as has been observed in the case of Damodar S. Prabhu
       v. Sayed Baba Lal, AIR 2010 SC 1907. Accordingly, as the
       dispute has been resolved and the entire amount has been
       paid to the complainant, in consonance with the object of the
       N.I. Act and the provisions under Section 147 thereof, the
       matter is considered as compounded.




                               Page 2 of 3
         R/CR.RA/1162/2026                                                           ORDER DATED: 23/04/2026




  6.         In aforesaid view of the matter, the judgment and order
             passed by the learned Trial Court of conviction and sentence
             for the offence punishable under Section 138 of the NI Act, as
             affirmed by the learned Appellate Court, are quashed and set
             aside. The applicant stands acquitted.


  7.         Accordingly, the present application is allowed in the above
             terms. Rule is made absolute to the aforesaid extent. Direct
             service is permitted.


                                                                                                   (GITA GOPI,J)
             Maulik

Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: MAULIK RAJESH PANDYA(HC00205), PRINCIPAL PRIVATE SECRETARY, at High Court of Gujarat on 23/04/2026 14:21:22




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