Bombay High Court
GOPAL AMAR THAKURversusSONIYA HEMANT VANJA AND ANR
- Decided
- Disposal
- Dismissed
Holding
The writ petition is dismissed; the court has no jurisdiction to modify the consent terms and the execution proceedings cannot be stayed.
Summary
The petitioner, Arjun Vitthal Kudhekar, issued 22 cheques totaling Rs.50,00,000 which were dishonoured, leading to a criminal case under Section 138 of the Negotiable Instruments Act. A settlement was reached on 20 April 2018, requiring payment of Rs.44,00,000 plus Rs.6,00,000 compensation, with five cheques of Rs.10,00,000 each and an interest clause of 12% per month on default. All cheques under the consent terms remained unpaid, and the petitioner filed a writ petition under Articles 226 and 227 seeking to quash the execution proceedings and to have the interest rate read as 12% per annum, claiming it was a clerical error. The High Court held that the petitioners had not complied with the consent terms, the court lacks jurisdiction to modify the settlement, and the interest clause is enforceable as agreed. Consequently, the petition was dismissed.
Issues considered
- Whether the execution proceedings under Section 138 of the Negotiable Instruments Act can be quashed on the ground of non‑compliance with the consent terms.
- Whether the stipulation of interest at 12% per month in the consent terms can be declared a clerical error and read down to 12% per annum.
- Whether the High Court has jurisdiction to modify the terms of a criminal settlement under Articles 226/227 of the Constitution.
Legislation cited
- Constitution of India — s. 226, 227
- Negotiable Instruments Act, 1881 — s. 138
Subjects
- Negotiable Instruments Act
- Section 138
- cheque bounce
- consent terms
- interest rate
- writ petition
- Articles 226 and 227
- execution proceedings
- jurisdiction
- modification of settlement
Judgment
03-WP-2725-2026.doc
Arjun
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CRIMINAL APPELLATE JURISDICTION
ARJUN WRIT PETITION NO.2725 OF 2026
VITTHAL Gopal Amar Thakur …Petitioner
KUDHEKAR
Digitally signed by
Versus
ARJUN VITTHAL
KUDHEKAR Soniya Hemant Vanja & Anr. …Respondents
Date: 2026.08.27
15:13:38 +0530
_______________________________________________________________
Mr. Karan Singh Mertia a/w Prajakta P. Tawde, for the Petitioner.
Mr. Prashant P. Jadhav, APP, for the Respondent-State.
_______________________________________________________________
CORAM: MADHAV J. JAMDAR, J.
DATED: 25 AUGUST 2026
P.C.:
1. Heard Mr. Karan Singh Mertia, learned Counsel appearing for the
Petitioner.
2. By the present Writ Petition filed under Articles 226 and 227 of
the Constitution of India, the Petitioner is seeking the following reliefs:
“a) Issue a Writ of Certiorari or any other appropriate writ
quashing and/or setting aside the execution proceedings
arising out of the compromise/pursis/consent terms and
order dated 22.04.2018 passed by the Learned Judicial
Magistrate, Panvel under Section 138 of the Negotiable
Instruments Act;
b) Issue an appropriate writ, order or direction under
Articles 226 and 227 of the Constitution of India,
declaring that the stipulation of interest @ 12% per
month in the Consent Terms is a clerical/inadvertent
error and is unenforceable, and be pleased to read the
same as 12% per annum;”
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03-WP-2725-2026.doc
3. Thus, the Petitioner is seeking setting aside the execution
proceedings arising out of the compromise pursis/consent terms and the
Order dated 22nd April 2018 passed by the learned Judicial Magistrate,
First Class, Panvel under Section 138 of the Negotiable Instruments Act,
1881 (“NI Act”) in Summary Criminal Case No.952 of 2017. The
Petitioner is also seeking modification of the consent terms by directing
the stipulation of interest at the rate of 12% per month be read as 12%
per annum.
4. Perusal of the record shows that a total of 22 cheques were issued
by the present Petitioner in favour of the Respondent i.e. Complainant,
aggregating to a total amount of Rs.50,00,000/-, and the said cheques
were dishonoured.
5. In the Criminal Case filed under Section 138 of the NI Act, a
settlement was arrived at, whereby an amount of Rs.44,00,000/- was
agreed to be paid, as Rs.6,00,000/- had already been paid in the
meanwhile. Therefore, the principal amount was Rs.44,00,000/-. Apart
from that, the Petitioner agreed to pay Rs.6,00,000/- towards
compensation. Accordingly, an aggregate amount of Rs.50,00,000/- was
agreed to be paid, and the consent terms were arrived at on 20th April
2018. As per the consent terms, five cheques of Rs.10,00,000/- each,
dated 14th August, 2018, 14th September 2018, 14th October 2018,
14th November 2018 and 14th December 2018, were handed over. It
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was also provided that, in case of default, it will be binding on the
Petitioner to pay interest @ 12% per month.
6. It is an admitted position that, all the cheques issued pursuant to
the consent terms have been dishonoured. Not a single farthing has
been deposited or paid to the Complainant. The Complainant has
accordingly filed Special Darkhast No.49 of 2019.
7. Thus, in the facts and circumstances, no case is made out for
grant of any relief.
8. The relief sought of stay of the execution proceedings, if granted,
will be totally unjust relief, as admittedly, the consent terms filed before
the Court in the year 2018 have not been complied with till the year
2026. Insofar as the relief seeking a declaration that the stipulation of
interest @ 12% per month in the consent terms was a
clerical/inadvertent error and is therefore unenforceable, and seeking a
direction that the same be read as 12% per annum, is concerned, the
same also cannot be granted.
9. The Writ Court has no jurisdiction to modify the consent terms. In
fact, a reading of the entire consent terms shows that the parties had
specifically agreed to payment of the interest at the rate of 12% per
month in case of default. The earlier cheques issued towards the agreed
amount of Rs.50,00,000/- had been dishonoured, and in the
proceedings under Section 138 of the NI Act, the parties have arrived at
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the consent terms. The consent terms have also admittedly not been
complied with.
10. Accordingly, in the facts and circumstances, no case is made out
for grant of any relief.
11. The Writ Petition is dismissed.
[MADHAV J. JAMDAR, J.]
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