RAJIV INDRAVADAN CHANDAK PROP. OF JEEVIKA FASHIONversusSTATE OF GUJARAT
- Disposal
- 58-RULE ISSUED & RULE ABSOLUTE/ALLOWED @FH
- Bench
- GITA GOPI
Holding
The convictions under Section 138 NI Act were quashed and the applicant acquitted because the offence was compounded with the complainant's consent under Section 147, which prevails over CrPC Section 320(1).
Summary
Pankaj Indravadan Chandak, proprietor of Veena Enterprises, filed criminal revision applications challenging convictions under Section 138 of the Negotiable Instruments Act in three separate cases, all of which had been affirmed by the Additional Sessions Judge. During the pendency of the proceedings, the complainant settled the dispute amicably and consented to compound the offence under Section 147 of the NI Act. The court held that Section 147, as an enabling provision, overrides the requirement of Section 320(1) of the CrPC and permits compounding with the aggrieved's consent. Accordingly, the convictions and sentences were quashed, the applicant was acquitted, and the amount deposited by the trial court was ordered to be released to the complainant. The revision applications were therefore allowed.
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 compounding of the offence under Section 147.
- Whether the consent of the complainant suffices to compound the offence despite prior conviction and appellate confirmation.
- Whether Section 147 of the NI Act overrides the procedural requirement of Section 320(1) of the CrPC in compounding offences.
Legislation cited
- Code of Criminal Procedure, 1973s. 320(1)
- Negotiable Instruments Act, 1881s. 138, s. 147
Subjects
Judgment
R/CR.RA/2527/2025 ORDER DATED: 13/03/2026
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/CRIMINAL REVISION APPLICATION (AGAINST CONVICTION -
NEGOTIABLE INSTRUMENT ACT) NO. 2527 of 2025
With
R/CRIMINAL REVISION APPLICATION NO. 2535 of 2025
With
R/CRIMINAL REVISION APPLICATION NO. 2581 of 2025
==========================================================
PANKAJ INDRAVADAN CHANDAK PROPRIETOR OF - VEENA
ENTERPRISES
Versus
STATE OF GUJARAT & ANR.
==========================================================
Appearance:
MR KULBHUSHAN S PANDEY(13282) for the Applicant(s) No. 1
MR. RAAJEN D JADHAV(10026) for the Applicant(s) No. 1
MS ANKITA GOSWAMI for the Respondent(s) No. 2
DS AFF.NOT FILED (R) for the Respondent(s) No. 2
MR BHARGAV PANDYA, APP for the Respondent(s) No. 1
==========================================================
CORAM:HONOURABLE MS. JUSTICE GITA GOPI
Date : 13/03/2026
COMMON ORDER
1. RULE. Learned advocates waive service of Rule on behalf of
the respective respondents.
2. Challenge in Criminal Revision Application no.2527/2025 is
given to the judgment and order of conviction and sentence
dated 16.11.2024 passed by the learned Chief Judicial
Magistrate, Surat in Criminal Case no.57708/2019, which was
confirmed by the judgment and order dated 29.11.2025
passed by the learned 10th Additional Sessions Judge, Surat in
Criminal Appeal no.1024/2024.
3. Challenge in Criminal Revision Application no.2535/2025 is
given to the judgment and order of conviction and sentence
dated 16.11.2024 passed by the learned Chief Judicial
Magistrate, Surat in Criminal Case no.57717/2019, which was
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R/CR.RA/2527/2025 ORDER DATED: 13/03/2026
confirmed by the judgment and order dated 29.11.2025
passed by the learned 10th Additional Sessions Judge, Surat in
Criminal Appeal no.1022/2024.
4. Challenge in Criminal Revision Application no.2581/2025 is
given to the judgment and order of conviction and sentence
dated 16.11.2024 passed by the learned Chief Judicial
Magistrate, Surat in Criminal Case no.57704/2019, which was
confirmed by the judgment and order dated 29.11.2025
passed by the learned 10th Additional Sessions Judge, Surat in
Criminal Appeal no.1023/2024.
5. Learned advocate for the applicants 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.
6. 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.
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R/CR.RA/2527/2025 ORDER DATED: 13/03/2026
7. 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 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.
8. 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.
9. In view of the above, the concerned Court is directed to
disburse the amount to the complainant on proper verification
of the identity, which was deposited before the Trial Court.
10. Accordingly, the present applications are allowed in the above
terms. Rule is made absolute to the aforesaid extent. Direct
service is permitted. Registry is directed to place a copy of
this order in connected matters.
(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 13/03/2026 16:18:13
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