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High Court of Gujarat

HEMALBHAI DEVCHANDBHAI KHATRIversusSTATE OF GUJARAT

Disposal
58-RULE ISSUED & RULE ABSOLUTE/ALLOWED @FH

Holding

The court held that, given the amicable settlement and the complainant's consent, the conviction and sentence under Section 138 NI Act must be quashed and set aside.

Summary

Hemalbhai Devchandbhai Khatri, the accused, filed an application under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 seeking to quash his conviction and sentence dated 29‑11‑2025 in a criminal appeal and the earlier order of the Additional Chief Metropolitan Magistrate dated 24‑07‑2023 for an offence under Section 138 of the Negotiable Instruments Act. The original complainant appeared in court, produced identity proof and an affidavit stating that the dispute had been amicably settled, the dues had been paid and he had no grievance. The court, after hearing counsel for both parties and noting the consent of the complainant, held that proceeding with the conviction would be futile and an abuse of process. Relying on the inherent powers under Section 528 of the 2023 Act and precedent, the court quashed the conviction, sentence and all consequential proceedings, and ordered the applicant to deposit 7.5% of the cheque amount as costs. The application was allowed and the rule made absolute.

Issues considered

  • The conviction under Section 138 of the Negotiable Instruments Act can be set aside on the basis of an amicable settlement and consent of the complainant.
  • Whether Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 empowers the court to quash a criminal conviction in such circumstances.
  • Whether continuation of the proceedings would amount to an abuse of the process of law.

Legislation cited

Subjects

settlementquashSection 138 NI Actconsentabuse of processinherent powersBharatiya Nagarik Suraksha Sanhitacriminal convictioncosts

Judgment

      R/CR.MA/200/2026                              ORDER DATED: 07/01/2026




             IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

R/CRIMINAL MISC.APPLICATION (FOR CONSENT QUASHING) NO. 200
                          of 2026

==========================================================
                         HEMALBHAI DEVCHANDBHAI KHATRI
                                     Versus
                            STATE OF GUJARAT & ANR.
==========================================================
Appearance:
MR. TARUNA R MAKWANA(7255) for the Applicant(s) No. 1
MR. MANAN MAHETA, APP for the Respondent(s) No. 1
==========================================================

     CORAM:HONOURABLE MR. JUSTICE VIMAL K. VYAS

                                Date : 07/01/2026

                                  ORAL ORDER


1.      Leave to amend.          The amendment shall be carried out
forthwith.


2.      Learned advocate Mr. Vishvesh R. Acharya appears and
submits that he has instructions to appear on behalf of the
respondent no.2 – original complainant. Registry shall accept
his vakalatnama.


3.      By way of preferring the present application under Section
528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, the
applicant-accused seeks to invoke the inherent powers of this
Court, praying to quash and set-aside the impugned judgment
and order dated 29.11.2025 passed by the learned Additional
Sessions Judge, City Civil & Sessions Court, Ahmedabad, in


                                    Page 1 of 5
     R/CR.MA/200/2026                         ORDER DATED: 07/01/2026




Criminal Appeal No. 536 of 2024 as well as the order dated
24.07.2023 passed by the learned Additional Chief Metropolitan
Magistrate, Ahmedabad, in Criminal Case No.15579 of 2018 for
the offence punishable under Section 138 of the Negotiable
Instruments Act, as well as all other consequential proceedings
arising pursuant thereto.

4.     Today, when the matter is called out, the complainant,
who is personally present before this Court, has produced his
identity proof as well as submitted an affidavit, which are
ordered to be taken on record. In the said affidavit, the
complainant has categorically stated that he has no grievance
against the applicant as he has already received his dues. He
has further stated that the dispute has been amicably resolved
between the parties and there is no ill-will or any grievance
amongst them.


5.     Considering the issue involved in the present application
as well as considering the fact that the dispute has been
amicably resolved between the parties, with the consent of the
learned advocates appearing for the respective parties, the
present application is taken up for final disposal.


6.     RULE returnable forthwith. Learned APP Mr. Manan
Maheta waives service of notice of rule for and on behalf of the
respondent no.1 – State and learned advocate Mr. Vishvesh R.
Acharya waives service of notice of rule for and on behalf of the


                              Page 2 of 5
     R/CR.MA/200/2026                              ORDER DATED: 07/01/2026




respondent no.2 – complainant.


7.     The complainant, who is personally present in the Court,
has categorically stated before this Court that he has no
objection if the application is allowed and the judgment and
order of conviction and sentence dated 29.11.2025 passed by
the learned Additional Sessions Judge, City Civil & Sessions
Court, Ahmedabad, in Criminal Appeal No. 536 of 2024 as well
as the order dated 24.07.2023 passed by the learned Additional
Chief Metropolitan Magistrate, Ahmedabad, in Criminal Case
No.15579 of 2018 are quashed and set-aside.


8.     Thus, it appears from the aforesaid that to continue
further with the proceedings pursuant to the impugned
judgment and order of conviction and sentence would be a futile
exercise and the same would amount to abuse of process of law.


9.     The relevant paragraphs of the affidavit filed by the
complainant – Dilipbhai Bharatbhai Rathod, read thus :
      “3. After passing of the judgement by the Ld. Session Judge, the
      matter has been amicably settle between the parties and the
      petitioner herein has paid the amount as per the order of Ld.
      Trial Court by way of Deed of settlement dated 30/12/2025 to the
      complainant herein. And therefore, the dispute has been
      amicably settled between the parties.

      4. The complainant herein has no objection, if this Hon'ble court
      will quash and set aside the impugned judgment and order dated
      29/11/2025 passed by the Ld. Additional Sessions Judge,
      Ahmedabad, wherein he has confirmed the order of the Learned
      Magistrate by a judgment and order dated 24/07/2023.”




                                 Page 3 of 5
      R/CR.MA/200/2026                                   ORDER DATED: 07/01/2026




10.     Having heard learned advocates appearing for the
respective parties as well as considering the facts and
circumstances arising out of the present application and taking
into consideration the decisions rendered in the cases of Gian
Singh vs. State of Punjab & Another, reported in (2012) 10
SCC 303, Madan Mohan Abbot vs. State of Punjab, reported
in (2008) 4 SCC 582, Nikhil Merchant vs. Central Bureau of
Investigation & Another, reported in (2009) 1 GLH 31, Manoj
Sharma vs. State & Others, reported in (2009) 1 GLH 190,
and Narinder Singh & Others vs. State of Punjab &
Another, reported in (2014) 2 Crime 67 (SC) as well as State
of Haryana vs. Bhajanlal, reported in AIR 1992 SC 604, it
appears that continuing further with the proceedings pursuant
to the impugned order of conviction and sentence would be a
futile exercise and the same would amount to abuse of process
of law. Hence, to secure the ends of justice, the impugned
conviction         and   sentence      and        all   other    consequential
proceedings arising pursuant thereto are required to be
quashed and set-aside in exercise of the powers conferred 528
of the Bharatiya Nagarik Suraksha Sanhita, 2023.


11.     In the result, the application is allowed. The judgment and
order of conviction and sentence dated 29.11.2025 passed by
the learned Additional Sessions Judge, City Civil & Sessions
Court, Ahmedabad, in Criminal Appeal No. 536 of 2024 as well
as the order dated 24.07.2023 passed by the learned Additional
Chief Metropolitan Magistrate, Ahmedabad, in Criminal Case


                                    Page 4 of 5
          R/CR.MA/200/2026                                                ORDER DATED: 07/01/2026




   No.15579 of 2018, for the offence punishable under Section 138
   of the Negotiable Instruments Act, as well as all other
   consequential proceedings arising pursuant thereto are hereby
   ordered to be quashed and set-aside qua the applicant/s.


   12.      In view of the ratio laid down in the case of Sanjabij Tari
   Vs. Kishore S. Borcar and Another [2025 INSC 1158], the
   applicant is directed to deposit 7.5% of the cheque amount, by
   way of costs, with the District Legal Service Authority,
   Ahmedabad, within a period of two weeks from the date of this
   order.

   13.      Rule made absolute. Direct service is permitted.



                                                                              (VIMAL K. VYAS, J)
   AMAR SINGH



Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: AMAR SINGH(HC01081), PRIVATE SECRETARY, at High Court of Gujarat on 08/01/2026 10:44:06




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