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High Court of Gujarat

DAKSHESH RAMNIKBHAI PATELversusSTATE OF GUJARAT

Disposal
56-DISPOSED AT ADMISSION STAGE

Holding

The conviction under Section 138 NI Act was quashed and the petitioner acquitted because the offence was compounded with the complainant's consent under Section 147, which prevails over CrPC provisions.

Summary

The petitioner, Dakshesh Ramnikbhai Patel, filed a criminal revision seeking relief from a conviction and sentence 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 amicably, and the complainant consented to compound the offence, filing an affidavit of settlement. The court considered the object of Section 147 of the NI Act, which allows compounding with the aggrieved's consent and overrides Section 320 of the CrPC, as held in Damodar S. Prabhu v. Sayed Baba Lal. Accordingly, the conviction was quashed, the petitioner was acquitted, and the court ordered the return of Rs.90,000 deposited by the accused. The revision application was allowed and the rule was made absolute.

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 Negotiable Instruments Act overrides the provisions of Section 320(1) of the Code of Criminal Procedure in matters of compounding offences.
  • Whether the court may order restitution of the amount deposited by the accused following the compounding of the offence.

Legislation cited

Subjects

Negotiable Instruments ActSection 138Section 147Compounding of offencesCriminal revisionAcquittalRestitutionSettlement

Judgment

     R/CR.RA/428/2026                            ORDER DATED: 20/04/2026




            IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

     R/CRIMINAL REVISION APPLICATION (AGAINST CONVICTION -
          NEGOTIABLE INSTRUMENT ACT) NO. 428 of 2026

==========================================================
                        DAKSHESH RAMNIKBHAI PATEL
                                  Versus
                         STATE OF GUJARAT & ANR.
==========================================================
Appearance:
MR MOHDDANISH M BAREJIA(10612) for the Applicant(s) No. 1
MS ASMITA PATEL, APP for the Respondent(s) No. 1
MR MS SHAIKH for the Respondent(s) No. 2
==========================================================

 CORAM:HONOURABLE MS. JUSTICE GITA GOPI

                             Date : 20/04/2026

                                 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 12.3.2025 passed
       by the learned JMFC, Surat in Criminal Case no. 56831/22,
       which was confirmed by the judgment and order dated
       3.1.2026 passed by the learned 15th Additional Sessions
       Judge, Surat in Criminal Appeal no. 305/25.


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/428/2026                          ORDER DATED: 20/04/2026




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.


6.     In aforesaid view of the matter, the judgment and order
       passed by the learned Trial Court of conviction and sentence



                               Page 2 of 3
        R/CR.RA/428/2026                                                           ORDER DATED: 20/04/2026




           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.         It is submitted that an amount of Rs.90,000/- 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.90,000/- be paid to the
           accused – Dakshesh Ramnikbhai Patel 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 20/04/2026 17:39:25




                                                      Page 3 of 3


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