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High Court of Gujarat

PROPRIETOR OF RADHEKRISHNA ENTERPRISE, KANABHAI JAGABHAI KODIYATARversusSTATE OF GUJARAT

Disposal
35-ANY OTHER MODE @ ADM.STAGE

Holding

The revision application is allowed; the judgment and order of conviction are quashed and the applicant is acquitted.

Summary

The proprietor of Radhekishna Enterprise was convicted under Section 138 of the Negotiable Instruments Act by a Special Negotiable Instrument Court and the conviction was upheld on appeal. The applicant filed a revision under Sections 438 and 442 of the Bharatiya Nagarik Suraksha Sanhita, seeking to quash the judgment, alleging that the dispute with the complainant had been amicably settled and the cheque amount paid. The original complainant filed an affidavit confirming the settlement and expressing no objection to setting aside the conviction. The court noted that the offence under Section 138 is compoundable under Section 147 of the NI Act once the amount is paid. Accordingly, the revision was allowed, the earlier judgment was quashed, the applicant was acquitted, and any bail bond was cancelled.

Issues considered

  • Whether a conviction under Section 138 of the Negotiable Instruments Act can be set aside on the basis of a post‑conviction settlement between the parties
  • Whether the offence is compoundable under Section 147 of the NI Act, permitting quashment of the judgment
  • Whether the revision provisions of the Bharatiya Nagarik Suraksha Sanhita (Sections 438 and 442) are applicable to this case

Legislation cited

Subjects

Negotiable Instruments ActSection 138Compoundable offenceRevisionQuashmentSettlementBail cancellationGujarat High Court

Judgment

     R/CR.RA/34/2026                            ORDER DATED: 24/02/2026




     IN THE HIGH COURT OF GUJARAT AT AHMEDABAD


   R/CRIMINAL REVISION APPLICATION (AGAINST
CONVICTION - NEGOTIABLE INSTRUMENT ACT) NO. 34 of
                      2026

================================================
 PROPRIETOR OF RADHEKRISHNA ENTERPRISE, KANABHAI
                JAGABHAI KODIYATAR
                       Versus
              STATE OF GUJARAT & ANR.
================================================
Appearance:
MR SANJAY PRAJAPATI(3227) for the Applicant(s) No. 1
MR ROHAN RAVAL, APP for the Respondent(s) No. 1
================================================

CORAM:HONOURABLE MR.JUSTICE P. M. RAVAL

                            Date : 24/02/2026

                            ORAL ORDER

1.    Learned advocate Ms. Nishita Prajapati states that she has
instructions to appear on behalf of the respondent No. 2 herein –
original complainant and shall file her 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.




                                Page 1 of 4
     R/CR.RA/34/2026                          ORDER DATED: 24/02/2026




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 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 01.09.2023 passed
by the learned 10th Additional Chief Judicial Magistrate, Special
Negotiable Instrument Court, Jamnagar in Criminal Case No. 7909
of 2022, 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 imprisonment with fine. The
said order was assailed before the learned 2 nd Additional Sessions
Judge, Jamnagar by way of Criminal Appeal No. 295 of 2023,
which came to be dismissed vide judgment and order dated
17.12.2025 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


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     R/CR.RA/34/2026                           ORDER DATED: 24/02/2026




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 – Ravi Kanabhai Kandoriya 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 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.


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 the
parties and that the applicant has paid the cheque amount to the
complainant and said fact has been confirmed by the complainant,


                              Page 3 of 4
        R/CR.RA/34/2026                                                            ORDER DATED: 24/02/2026




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, if any, shall
stand cancelled. Surety shall be discharged.


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


                                                                                           [ P. M. Raval, J. ]
hiren/37tss24226




      Original copy of this order has been signed by the Hon'ble Judge.
      Digitally signed by: HIREN VIRENDRABHAI MER(HC00351), PRINCIPAL PRIVATE SECRETARY, at High Court of Gujarat on 24/02/2026 14:40:55



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