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High Court of Gujarat

DIPAKBHAI BHIKHUBHAI HIRANIversusCHETANKUMAR LIMBABHAI GONDHANI PROP. OF MARUTI LACE

Disposal
27-WITHDRAWN @ ADM.STAGE

Holding

The court held that, because the offence is compoundable and the complainant consented to settlement, the conviction under Section 138 NI Act must be quashed and the applicant acquitted.

Summary

Dipakbhai Bhikhubhai Hirani was convicted by the 13th Additional Chief Judicial Magistrate, Surat, under Section 138 of the Negotiable Instruments Act and sentenced to simple imprisonment. He appealed to the 2nd Additional Sessions Judge, Surat, but the appeal was dismissed and the conviction upheld. Subsequently, Hirani filed a revision application under Sections 438 and 442 of the Bharatiya Nagarik Suraksha Sanhita seeking to quash the judgment, alleging that the dispute with the complainant, Chetankumar Limbabhai Gondhani, had been amicably settled. The complainant filed an affidavit stating that he had received the cheque amount, had no objection to the quashing of the conviction, and that the matter was fully resolved. The court noted that the offence under Section 138 is compoundable under Section 147 of the Negotiable Instruments Act and, given the complainant's consent, the conviction could be set aside. Accordingly, the revision application was allowed, the impugned judgment and order were quashed, and the applicant was acquitted. The bail bond and surety, if any, were discharged.

Issues considered

  • Whether a conviction under Section 138 of the Negotiable Instruments Act can be quashed on the ground of settlement and compounding of the offence after judgment.
  • Whether a revision application under Sections 438 and 442 of the Bharatiya Nagarik Suraksha Sanhita is maintainable for setting aside a criminal conviction.
  • Effect of the complainant's consent and the compoundable nature of the offence under Section 147 of the NI Act on the validity of the conviction.

Legislation cited

Subjects

Negotiable Instruments ActSection 138compoundable offencesettlementrevisionBharatiya Nagarik Suraksha Sanhitaquash convictioncriminal procedure

Judgment

      R/CR.RA/2508/2025                                  ORDER DATED: 19/02/2026




             IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

      R/CRIMINAL REVISION APPLICATION (AGAINST CONVICTION -
           NEGOTIABLE INSTRUMENT ACT) NO. 2508 of 2025

==========================================================
                  DIPAKBHAI BHIKHUBHAI HIRANI
                             Versus
     CHETANKUMAR LIMBABHAI GONDHANI PROP. OF MARUTI LACE &
                             ANR.
==========================================================
Appearance:
MR. KISHAN H DAIYA(6929) for the Applicant(s) No. 1
PRANAV DHAGAT APP for the Respondent(s) No. 2
==========================================================

 CORAM:HONOURABLE MR.JUSTICE P. M. RAVAL

                                Date : 19/02/2026

                                 ORAL ORDER


1.      Learned advocate Mr. Viral J Vyas states that he has
instructions to appear on behalf of the respondent No. 1
herein – original complainant and shall file his Vakalatnama
before the Registry. Registry to accept his Vakalatnama.


2.      Rule.      Learned Additional Public Prosecutor as well as
learned advocate appearing for the original complainant waive
service       of notice   of Rule        on behalf       of the respective
respondents.


3.       Considering      the     issue       involved     in    the      present
application, with the consent of the learned advocates
appearing for the respective parties as well as considering the
fact that the dispute amongst the applicant and original
complainant has been resolved amicably, this application is
taken up for final disposal today as alleged offence is

                                    Page 1 of 4
     R/CR.RA/2508/2025                         ORDER DATED: 19/02/2026




compoundable.


4.      By this revision application under Section 438 of the
Bharatiya Nagarik Suraksha Sanhita, 2023 (for short “BNSS”)
read with section 442 of BNSS, the applicant has prayed for
quashing and setting aside the judgment and order dated
31.08.2024 passed by the learned 13 th Additional Chief
Judicial Magistrate, Surat in Criminal Case No. 99717 of
2021, whereby the trial Court held the applicant guilty for the
offence under Section 138 of the Negotiable Instruments Act,
1881 (for short “NI Act”) and sentenced to undergo Simple
Imprisonment (SI).         The said order was assailed before the
learned 2nd Additional Sessions Judge, Surat by way of
Criminal Appeal No. 753 of 2024, which came to be dismissed
vide judgment and order dated 29.08.2025 and the order of
conviction has been confirmed and upheld. Aggrieved thereby,
this revision application is filed.


5.      Learned advocate for the applicant has taken this Court
through the factual matrix arising out of the present
application.        However, it is submitted that the parties have
amicably resolved the issue. It is further submitted that in
view of the fact that the dispute is resolved, present
application deserves consideration.


6.      Learned advocate for original complainant has reiterated
the contentions raised by the learned advocate for the
applicant.        Original complainant – Chetankumar Limbabhai


                                 Page 2 of 4
      R/CR.RA/2508/2025                            ORDER DATED: 19/02/2026




Gondhani appeared before the Court and is identified by the
learned        advocate   for   the   original   complainant.            The
complainant affirms the factum of settlement.               He has also
filed an affidavit, which is taken on record, stating therein that
he has no objection if the judgment and orders impugned in
this revision application are quashed and set aside. He also
states that he has filed the affidavit without any coercion,
threat or undue influence, on his own volition.               On inquiry
made by the Court, the original complainant has declared
before this Court that the dispute between the applicant and
the original complainant is resolved and cheque amount has
already been received by the original complainant and
therefore, now the grievance stands redressed. It is, therefore,
submitted that the present application may be allowed.


6.1      Learned Advocate for the Applicant submits that even as
per the settlement, the 20% amount deposited before the
Court below is handed over to the Original Accused –
Applicant herein to which complainant would not raise any
objection. Trial Court to hand over the said amount to the
original accused – Applicant herein after due verification.


7.       Learned Additional Public Prosecutor appearing for the
State has submitted that in the facts and circumstances of the
case and in view of the extant law, Court may pass
appropriate orders.


8.       Considering the fact that the dispute is settled between


                                 Page 3 of 4
          R/CR.RA/2508/2025                                                                     ORDER DATED: 19/02/2026




  the parties and said fact has been confirmed by the
  complainant, as the offence is compoundable one at any stage
  under Section 147 of the NI Act.


  9.         Resultantly, this revision application is allowed. The
  judgment and orders impugned in this revision application,
  referred to herein above, are hereby quashed and set aside.
  The applicant is acquitted of the present charge. Bail bond
  and surety, if any, shall stand discharged.


  10.          Rule is made absolute to the aforesaid extent.                                                               Direct
  service is permitted.


                                                                                                           (P. M. RAVAL, J)
  MMP


Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: MAHENDRA MOHANBHAI PUROHIT(HCD0074), ENGLISH STENOGRAPHER GRADE TWO CLASS TWO, at High Court of Gujarat on 19/02/2026
15:01:53




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