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High Court of Gujarat

PANKAJ PARSHURAM PAWARversusCHIRAGBHAI VASUDEV TELNAGE

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

Holding

The conviction under Section 138 is quashed and the accused acquitted because the offence was compounded with the complainant's consent under Section 147, which prevails over Section 320(1) of the CrPC.

Summary

The High Court considered a revision application challenging a conviction under Section 138 of the Negotiable Instruments Act, which had been affirmed by the appellate court. During the pendency of the proceedings the parties settled the dispute and the complainant gave written consent to compound the offence under Section 147 of the NI Act. The Court held that Section 147, as amended, overrides the general provision of Section 320(1) of the Code of Criminal Procedure and permits compounding with the aggrieved's consent. Accordingly, the conviction and sentence were quashed and the accused was acquitted. The Court also ordered the return of Rs.15,000 deposited by the accused, subject to verification of identity.

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 Section 320(1) of the Code of Criminal Procedure in matters of compounding offences.

Legislation cited

Subjects

Negotiable Instruments ActSection 138Section 147compounding of offencessettlementrevision applicationacquittalCriminal Procedure CodeSection 320consent of aggrieved

Judgment

     R/CR.RA/1190/2026                           ORDER DATED: 21/04/2026




            IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

     R/CRIMINAL REVISION APPLICATION (AGAINST CONVICTION -
          NEGOTIABLE INSTRUMENT ACT) NO. 1190 of 2026

==========================================================
                        PANKAJ PARSHURAM PAWAR
                                  Versus
                    CHIRAGBHAI VASUDEV TELNAGE & ANR.
==========================================================
Appearance:
MR DINESHKUMAR J PRAJAPATI(9979) for the Applicant(s) No. 1
MS JAYSHREE BHATT for the Respondent(s) No. 1
MR ROHAN RAWAL, APP for the Respondent(s) No. 2
==========================================================

 CORAM:HONOURABLE MS. JUSTICE GITA GOPI

                             Date : 21/04/2026

                                 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 30.1.2025 passed
       by the learned 21st Additional Chief Judicial Magistrate,
       Ahmedabad City in Criminal Case no. 83343/22, which was
       confirmed by the judgment and order dated 18.10.2025
       passed by the learned Additional Sessions Judge, City Civil
       and Sessions Court, Ahmedabad in Criminal Appeal no.
       195/25.


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/1190/2026                          ORDER DATED: 21/04/2026




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/1190/2026                                                           ORDER DATED: 21/04/2026




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.       It is submitted that an amount of Rs.15,000/- has been
         deposited by the accused. In view of the settlement arrived at
         and as admitted by the complainant, the concerned Court is
         directed to disburse an amount of Rs.15,000/- be paid to the
         accused on proper verification of the identity.


8.       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 21/04/2026 15:05:43




                                                    Page 3 of 3


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