High Court of Gujarat
HARSHADRAY CHAMANLAL VASRANIversusSTATE OF GUJARAT
- Disposal
- 58-RULE ISSUED & RULE ABSOLUTE/ALLOWED @FH
- Bench
- GITA GOPI
Holding
The conviction under Section 138 of the NI Act was quashed and the applicant acquitted because the offence was compounded with the complainant's consent under Section 147, which overrides Section 320(1) of the CrPC.
Summary
Harshadray Chamanlal Vasrani was convicted under Section 138 of the Negotiable Instruments Act by the Trial Court and the conviction was affirmed by the Sessions Court. During the pendency of the proceedings the parties settled the dispute amicably, and the complainant executed an affidavit of settlement and consented to compound the offence under Section 147 of the NI Act. The court noted that Section 147, as amended, gives overriding effect to Section 320(1) of the Code of Criminal Procedure, allowing compounding with the aggrieved's consent. Relying on this provision and the precedent of Damodar S. Prabhu v. Sayed Baba Lal, the High Court quashed the conviction and acquitted the applicant. The revision application was therefore allowed and the earlier judgment set aside.
Issues considered
- Whether a conviction under Section 138 of the Negotiable Instruments Act can be set aside on the ground of settlement and compounding of the offence with the complainant's consent.
- Whether Section 147 of the Negotiable Instruments Act overrides the requirement of Section 320(1) of the CrPC in matters of compounding.
- Whether the High Court has jurisdiction to quash a conviction affirmed by the Sessions Court on the basis of a post‑conviction settlement.
Legislation cited
- Code of Criminal Procedure, 1973s. 320(1)
- Negotiable Instruments Acts. 138, s. 147
Subjects
Negotiable Instruments ActSection 138Section 147Compounding of offencesCriminal revisionAcquittalSettlementCrPC Section 320
Judgment
R/CR.RA/347/2026 ORDER DATED: 10/03/2026
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/CRIMINAL REVISION APPLICATION (AGAINST CONVICTION -
NEGOTIABLE INSTRUMENT ACT) NO. 347 of 2026
==========================================================
HARSHADRAY CHAMANLAL VASRANI
Versus
STATE OF GUJARAT & ANR.
==========================================================
Appearance:
MR BRIJ V SHETH(10594) for the Applicant(s) No. 1
MR BHARGAV PANDYA, APP for the Respondent(s) No. 1
MR AMIT SOLIYA for the Respondent(s) No. 2
==========================================================
CORAM:HONOURABLE MS. JUSTICE GITA GOPI
Date : 10/03/2026
ORAL 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 6.3.2024 passed
by the learned 16th Additional Senior Civil Judge & Additional
Chief Judicial Magistrate, Rajkot in Criminal Case
no.15965/19, which was confirmed by the judgment and
order dated 18.12.2025 passed by the learned 7 th Additional
Sessions Judge, Rajkot in Criminal Appeal no.178/24.
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.
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R/CR.RA/347/2026 ORDER DATED: 10/03/2026
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 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.
6. In aforesaid view of the matter, the judgment and order
passed by the learned Trial Court of conviction and sentence
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R/CR.RA/347/2026 ORDER DATED: 10/03/2026
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 10/03/2026 17:43:38
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