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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

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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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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