Bombay High Court

SHANTI PRIOLKAR.versusCLIMA COLACO AND ANR.,

Disposal: Disposed of

Holding

The Court quashed the earlier orders, compounded the offence under Section 138, and directed payment of the compensation with interest and costs as specified.

Summary

Shanti Priolkar (Applicant) deposited the full compensation amount and sought its payment to Clima Colaco (Respondent No.1) along with the compounding of the offence under Section 138 of the Negotiable Instruments Act. Respondent No.1 consented to the compounding. The Court quashed the earlier judgments dated 4‑April‑2024 and 24‑April‑2024 of the Chief Judicial Magistrate, Panaji, and the judgment of 23‑April‑2025 of the Sessions Judge, North Goa, setting them aside. It ordered that Rs.1,80,000 with accrued interest be paid to the Respondent, an additional Rs.60,000 with interest by the Superintendent of the Sessions Court, and Rs.10,000 as costs to the Goa State Legal Services Authority. The offence under Section 138 was declared compounded, and the criminal revision application was disposed of.

Issues considered

What is the appropriate procedure for compounding an offence under Section 138 of the Negotiable Instruments Act?
Whether the earlier orders of the Chief Judicial Magistrate and the Sessions Judge can be quashed and set aside?
How should the deposited compensation be disbursed, including interest and costs?

Legislation cited

Negotiable Instruments Act — s. 138

Subjects

Section 138
Negotiable Instruments Act
compounding of offences
criminal revision
quashing of orders
compensation payment
interest
costs

Judgment

2026:BHC-GOA:1827
                                            903 CRMA 131 2026

                vinita

                         IN THE HIGH COURT OF BOMBAY AT GOA
                          CRIMINAL MISC. APPLICATION NO.131 OF 2026
                                           WITH
                         CRIMINAL REVISION APPLICATION NO.62 OF 2018
                     CRIMINAL MISC. APPLICATION NO.131 OF 2026
           SHANTI PRIOLKAR                           ... APPLICANT
             Versus
           CLIMA COLACO AND ANR.                     ... RESPONDENTS
                                      WITH
                    CRIMINAL REVISION APPLICATION NO.62 OF 2018
           SHANTI PRIOLKAR.                         ... APPLICANT
             Versus
           CLIMA COLACO AND ANR.,                   ... RESPONDENTS

           Mr Arjun Naik, Advocate for the Applicant, through VC.
           Mr Ivan Santimano, Advocate for the Respondnet No.1.

                                 CORAM:- AMIT S. JAMSANDEKAR, J.
                                 DATED :- 9th September, 2026

           P.C.
                  Heard Mr A.Naik, learned Counsel for the Applicant.


           2.        It is submitted that the Applicant has deposited the entire
           compensation amount in the Court.


           3.      In view thereof, it is submitted that the compensation amount
           deposited by the Applicant be paid to the Respondent No.1 and the
           offence committed by the Applicant under Section 138 of the
           Negotiable Instruments Act be compounded.



                                                Page 1 of 3
                                             9th September, 2026
                                903 CRMA 131 2026


4.     Respondent No.1 has no objection if the offence committed
by the Applicant under Section 138 of the Negotiable Instruments
Act is compounded.


5.    In view thereof, the judgment and orders dated 4.4.2024 and
24.4.2024 passed by the Chief Judicial Magistrate, Panaji in
Criminal Case No.AOA/227/2018/A and the judgment and order
dated 23.4.2025 passed by the Sessions Judge, North, Goa, Merces
in Criminal Appeal No.149/2024 are quashed and set aside.
Consequently, the offence committed by the Applicant under
Section 138 of the Negotiable Instruments Act stands compounded.


6.    The Registry is directed to remit an amount of Rs.1,80,000/- to
the    Respondent    No.1    along     with            accrued   interest.   The
Superintendent of the Sessions Court is ordered and directed to
remit Rs.60,000/- along with accrued interest to the Respondent
No.1. The bank details shall be furnished by the Respondent No.1.
The Applicant shall pay Rs.10,000/- towards costs to the Goa State
Legal Services Authority within a period of one week from today.


7.     Criminal Revision Application stands disposed of. Pending
Applications, if any, stand disposed of.


8.    Stand over to 17.9.2026 for compliance.



                                     Page 2 of 3
                                 9th September, 2026
                                                     903 CRMA 131 2026


                       9.        This order will be digitally signed by the Private
                       Secretary/Personal Assistant of this Court. All concerned will act
                       on production by fax or email of a digitally signed copy of this
                       order.



                                                             AMIT S. JAMSANDEKAR, J.




Signed by: VINITA VIKAS NAIK
Designation: Private Secretary
                                                         Page 3 of 3
Date: 10/09/2026 11:12:41
                                                      9th September, 2026

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