Bombay High Court
VIKAS S/O. SITARAM WANIversusTHE STATE OF MAHARASHTRA AND ANR
- Disposal
- DISPOSED OFF
Holding
The prosecution under Section 138 cannot continue once the debt is fully repaid and the creditor issues a No Dues Certificate, leading to dismissal of the revision application.
Summary
The applicant, Vikas, was prosecuted under Section 138 of the Negotiable Instruments Act for issuing dishonoured cheques related to a loan of Rs.60,000 taken from a credit society. The credit society later issued a No Dues Certificate on 19 July 2019, confirming full repayment of the loan. The applicant moved a criminal revision application arguing that the prosecution should not continue after repayment. The court examined whether the existence of a No Dues Certificate extinguishes the criminal liability under Section 138. It held that since the loan had been fully repaid and the creditor no longer wished to pursue the case, the criminal proceeding could not survive. Consequently, the revision application was disposed of, and the applicant was allowed to withdraw any amount already paid to the court.
Issues considered
- Whether a criminal prosecution under Section 138 of the Negotiable Instruments Act can continue after the debtor has repaid the loan and the creditor has issued a No Dues Certificate.
Legislation cited
- Negotiable Instruments Act — s. 138
Subjects
- Section 138
- Negotiable Instruments Act
- Cheque bounce
- No Dues Certificate
- Criminal revision
- Loan repayment
Judgment
2026:BHC-AUG:38153
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
965 CRIMINAL REVISION APPLICATION NO. 210 OF 2019
VIKAS S/O. SITARAM WANI
VERSUS
THE STATE OF MAHARASHTRA AND ANOTHER
Mr.S.P.Tiwari h/f Mr.A.K.Tiwari, Advocate for the Applicant.
Mr.C.B.Bhadane, APP for the Respondent/State.
( CORAM : SUSHIL M. GHODESWAR, J. )
DATE : 21st AUGUST, 2026
PER COURT :
1. Heard the learned Advocate for the Applicant. He states
that the Applicant was prosecuted by the Respondent/Credit Society
u/s 138 of the N.I.Act. The cheques which were dishonoured, were
pertaining to the loan account of the Respondent/Credit Society,
wherein, the Applicant had obtained the loan amount of Rs.60,000/- on
10.08.2007. The learned Advocate for the Applicant further submits
that now the Respondent/Credit Society had issued a letter dated
19.07.2019 that the Applicant has repaid all the loan amount and
accordingly issued “No Dues Certificate”. The letter was issued in
pursuance to the litigation pending before this Court. Hence, the
khs/Aug.2026/210
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original copy of the letter is taken on record and marked as ‘X’ for the
purpose of identification.
2. In that view of the matter, as the Applicant has repaid the
loan amount and the Respondent Bank is not interested in prosecuting
the Applicant, this matter does not survive and disposed of accordingly.
However, the Applicant is permitted to withdraw the amount paid
before this Court.
( SUSHIL M. GHODESWAR, J.)
khs/Aug.2026/210
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