Bombay High Court
SUMANT MADIKERIversusRENUKA NADKARNI AND ANR.
- Disposal
- Disposed of
- Bench
- AMIT S JAMSANDEKAR
Holding
The offence punishable under Section 138 of the Negotiable Instruments Act is compounded, and the earlier conviction and orders are quashed.
Summary
The applicant, Sumant Madikeri, was convicted by a Judicial Magistrate First Class for an offence under Section 138 of the Negotiable Instruments Act and ordered to pay Rs.2 lakh compensation, part of which was deposited. The applicant filed a criminal revision challenging the Sessions Judge’s dismissal of his appeal against that conviction. The respondent, Renuka Nadkarni, agreed to accept the compensation and sought to compound the offence, subject to additional costs. Relying on the Supreme Court’s decision in Sanjabij Tari v. Kishore S. Borcar (2025), the High Court ordered the offence to be compounded, directed payment of Rs.10,000 to the respondent, and released the deposited compensation with interest to her. Consequently, the earlier orders of the Sessions Judge and the JMFC were quashed, the conviction set aside, and the revision and miscellaneous applications were disposed.
Issues considered
- Whether an offence under Section 138 of the Negotiable Instruments Act can be compounded after conviction.
- Whether the High Court can set aside the conviction and order of the Sessions Judge on the basis of the parties' willingness to compound.
- Applicability of Section 255(2)/255(3) of the Cr.P.C., Section 278 of the BNSS, 2023, and the Probation of Offenders Act, 1958 in compounding the offence.
Legislation cited
- Banking and Financial Services (Regulation) Act, 2023 — s. 278
- Code of Criminal Procedure, 1973 — s. 255(2), 255(3)
- Negotiable Instruments Act, 1881 — s. 138
- Probation of Offenders Act, 1958
Subjects
- compounding of offences
- Section 138 NI Act
- criminal revision
- conviction set aside
- compensation
- Criminal Procedure Code
- BNSS 2023
- Probation of Offenders Act
Judgment
2026:BHC-GOA:1466 Sumant Madikeri
Vs.
Renuka Nadkarni & Anr.
__________________________________________________
18 CRIR 19 of 2026
Esha
IN THE HIGH COURT OF BOMBAY AT GOA
CRIMINAL REVISION APPLICATION NO. 19 OF 2026
WITH
CRIMINAL MISC. APPLICATION NO. 51 OF 2026
IN
CRIMINAL REVISION APPLICATION NO. 19 OF 2026
SUMANT MADIKERI … APPLICANT
~ VERSUS ~
RENUKA NADKARNI & ANOTHER … RESPONDENTS
A PPEARANCES :
for the Applicant Mr. Pranav Vaze
for Respondent No. 1 Mr. Kishan Kavlekar
for Respondent No. 2 Additional Public Prosecutor, Mr.
Somnath Karpe
CORAM : AMIT S. JAMSANDEKAR, J.
DATED : 27th JULY 2026
P.C:
1. Heard learned Counsel for the Applicant and the learned Counsel for
the first Respondent.
Page 1 of 4
July 27, 2026
Sumant Madikeri
Vs.
Renuka Nadkarni & Anr.
__________________________________________________
18 CRIR 19 of 2026
2. By the present Application, the Applicant has challenged the order
dated 21.12.2024 passed by the learned Additional Sessions Judge,
Panaji in Criminal Appeal No. 216/2023, by which, the learned
Additional Sessions Judge (learned Sessions Judge) was pleased to
dismiss the Appeal filed by the Applicant against the judgment and
order dated 07.06.2023 passed by the learned Judicial Magistrate First
Class, Ponda (learned JMFC) in Criminal Case No. 617/OA/NIA/
2017/C, thereby convicting the Applicant for the offence punishable
under Section 138 of the Negotiable Instruments Act, 1881 (N.I. Act).
3. The total compensation amount awarded by the learned JMFC is Rs.2
Lakhs, out of which the Applicant has deposited a part of the said
amount before the Registry of this Court and the remaining part before
the Appellate Court. In view thereof, the conduct of the Applicant
establishes her bonafides.
4. The first Respondent is ready and willing to accept the compensation
amount and to compound the offence, however, subject to payment
of some additional costs.
Page 2 of 4
July 27, 2026
Sumant Madikeri
Vs.
Renuka Nadkarni & Anr.
__________________________________________________
18 CRIR 19 of 2026
5. The Hon’ble Supreme Court in the case of Sanjabij Tari Vs. Kishore
S. Borcar & Another, 2025 SCC OnLine SCC 2069 has held as
follows:
“39. This Court is of the view that if the Accused is willing to
pay in accordance with the aforesaid guidelines, the Court may
suggest to the parties to go for compounding. If for any reason, the
financial institutions/complainant asks for payment other than the
cheque amount or settlement of entire loan or other outstanding
dues, then the Magistrate may suggest to the Accused to plead guilty
and exercise the power under Section 255(2) and/or 255(3) of the
Cr.P.C. or 278 of the BNSS, 2023 and/or give the benefit under
the Probation of Offenders Act, 1958 to the Accused.”
6. Keeping in view the aforesaid, I am inclined to compound the offence
under Section 138 of the N.I. Act, however, subject to payment of
costs by the Applicant to the first Respondent.
7. The Registrar (Judicial) of this Court and the Superintendent of the
Additional Sessions Judge, Panaji, are directed to release the deposited
compensation amount along with accrued interest, if any, in favour of
the first Respondent on the first Respondent furnishing her Bank
details. The Applicant is also further directed to pay an amount of
Rs.10,000/- (Rupees Ten Thousand only) to the first Respondent on
or before 03.08.2026. The learned Counsel appearing for the first
Page 3 of 4
July 27, 2026
Sumant Madikeri
Vs.
Renuka Nadkarni & Anr.
__________________________________________________
18 CRIR 19 of 2026
Respondent, on instructions, accepts the additional compensation of
Rs.10,000/-.
8. Consequently, the order dated 21.12.2024 passed by the learned
Sessions Judge in Criminal Appeal No. 216/2023 as well as the
judgment and order dated 07.06.2023 passed by the learned JMFC in
Criminal Case No. 617/OA/NIA/2017/C are quashed and set aside
and the offence punishable under Section 138 of the N.I. Act stands
compounded.
9. The Criminal Revision Application No. 19 of 2026 as well as Criminal
Miscellaneous Application No. 51 of 2026 stand disposed of.
10. List the matter on the cause list of 4th August 2026 for reporting
compliance.
11. 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. ]
Page 4 of 4
Signed by: VAIGANKAR ESHA July 27, 2026
SAINATH
Designation: Personal Assistant
Date: 28/07/2026 14:54:09
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