Bombay High Court

TABARAKULLA MULLAversusLOKMANYA MULTIPURPOSE CO-OPERATIVE SOCIETY LTD REP BY ITS BRANCH MANAGER

Disposal: Disposed of
Bench: AMIT S JAMSANDEKAR

Holding

The court held that the offence under Section 138 was validly compounded, leading to the setting aside of the conviction and the acquittal of the applicant.

Summary

The applicant, Tabarakulla Mulla, was convicted under Section 138 of the Negotiable Instruments Act, 1881. The respondent cooperative society confirmed receipt of all dues and raised no objection to compounding the offence. The court accepted the parties' settlement, set aside the earlier judgments of the Judicial Magistrate and the Principal Sessions Judge, and acquitted the applicant. It ordered the remission of Rs.95,000 deposited with the Sessions Court and the release of a total of Rs.3,80,000 to the respondent via online transfer. Costs were waived in line with Supreme Court precedents. Both the criminal revision and miscellaneous applications were disposed.

Issues considered

Can an offence under Section 138 of the Negotiable Instruments Act be compounded with the consent of the aggrieved party?
Does a valid compounding of the offence warrant setting aside the conviction and sentence?
May the court waive costs based on Supreme Court authority in similar matters?

Legislation cited

Negotiable Instruments Act, 1881 — s. 138

Subjects

compounding of offence
Section 138 NI Act
acquittal
criminal revision
costs waiver
settlement
cooperative society

Judgment

                           902 CRMA.79 OF 2026




Siddhi
          IN THE HIGH COURT OF BOMBAY AT GOA

     CRIMINAL MISCELLANEOUS APPLICATION NO. 79 OF 2026
                           AND
        CRIMINAL REVISION APPLICATION NO. 26 OF 2023

TABARAKULLA MULLA                                ... APPLICANT

Versus

LOKMANYA MULTIPURPOSE
CO-OPERATIVE SOCIETY LTD.
REP. BY ITS BRANCH MANAGER .                     ... RESPONDENT

Mr Ryan Menezes with Ms. Stephanie Alvares and Ms. M.Silva,
Advocate for the Applicant.
Ms. Yadika Mandrekar, Advocate for the Respondent.


                          CORAM:- AMIT S. JAMSANDEKAR,J.
                          DATED :- 17th June, 2026

P.C.
1.       Heard Mr. Ryan Menezes, learned counsel for the Applicant

and Ms. Yadika Mandrekar, learned counsel for the Respondent.

2.       It is submitted that, the Respondent has received all amounts

due to it and has no further claim against the Applicant and has given

its no objection to the compounding of the offence under Section

138 of the Negotiable Instruments Act, 1881, for which the Applicant

was convicted in the present case.




                                 Page 1 of 4
                                17th June 2026
                           902 CRMA.79 OF 2026




3.    In view thereof, the learned counsel appearing for the

Applicant and the learned counsel appearing for the Respondent have

tendered Minutes of Order. The same are taken on record and

marked 'X' for identification.

4.    Accordingly, the said offence stands compounded and the

Judgment and Order dated 09.01.2023 passed in Criminal Case No.

274/OA/2015/B by the learned Judicial Magistrate First Class,

Panaji, Goa, and the Judgment and Order dated 05.06.2023 passed by

the learned Principal Sessions Judge, North Goa, at Panaji, in

Criminal Appeal No. 45/2023, and the conviction and sentence

imposed upon the Applicant for the offence punishable under

Section 138 of the Negotiable Instruments Act, 1881, are set aside

and the Applicant stands acquitted of the said offence.

5.    The amount of Rs.95,000/- (Rupees Ninety Five Thousand

only) deposited before the Court of the Principal Sessions Judge,

North Goa, at Panaji, shall be remitted by the said Court to the

Registry of this Court, along with accrued interest, if any, within a

period of one week from today.




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                                 17th June 2026
                           902 CRMA.79 OF 2026




 6.    Thereafter, the amount of Rs.2,85,000/-(Rupees Two Lakhs

 Eighty Five Thousand only) deposited with this Court and the

 amount of Rs.95,000/-(Rupees Ninety Five Thousand only) remitted

 by the Court of the Principal Sessions Judge, North Goa, at Panaji,

 i.e. a total amount of Rs.3,80,000/-(Rupees Three Lakhs Eighty

 Thousand only), along with accrued interest, if any, shall be released

 to the Respondent and transferred by online transfer to the following

 account:

Account Name: LOKMANYA MULTIPURPOSE CO-OPERATIVE
SOCIETY LTD.
Account Type : Savings
Account Number : 10822111000055
IFSC Code : PUNB0400400
Bank Name : Punjab National Bank
Branch : Mapusa


 7.    In view of the settlement arrived at between the parties, and in

 view of the peculiar facts and circumstances of this case, the payment

 of costs in terms of the judgments of the Hon'ble Supreme Court in

 Damodar S. Prabhu v. Sayed Babalal H., (2010) 5 SCC 663 and

 Sanjabij Tari v. Kishore S. Borcar & Another (2025 SCC OnLine

 SC 2069) is waived.




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                                17th June 2026
                                                           902 CRMA.79 OF 2026




                                  8.    Accordingly, Criminal Revision Application No. 26 of 2023

                                  stand disposed of in the above terms and consequently, the Criminal

                                  Miscellaneous Application No.79 of 2026 also stands disposed of.




                                                                        AMIT S. JAMSANDEKAR, J.




Signed by: SHAKUNTALA ZALMI
Designation: Personal Assistant
Date: 19/06/2026 14:54:05                                        Page 4 of 4
                                                                17th June 2026

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