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High Court of Gujarat

M/S SILICON CROP SCIENCE (I) PVT. LTD. THROUGH NIKUL RAMESHBHAI PATELversusSTATE OF GUJARAT

Disposal
47-DISPOSAL IN ANY OTHER MODE FH

Holding

The Court quashed the conviction and set aside the orders, disposing of all applications, subject to the applicant depositing 7.5% of the cheque amount as costs.

Summary

Lakhabhai D. Kanara, convicted under the Negotiable Instruments Act for a cheque bounce, filed multiple criminal revision and miscellaneous applications seeking to set aside the conviction and to compound the offence. The parties subsequently reached an amicable settlement, with the complainant filing an affidavit expressing no objection to quashing the proceedings. The State opposed the application, citing the seriousness of the offence. The Court, noting the settlement and an affidavit from the complainant, ordered the applicant to deposit 7.5% of the cheque amount as costs, following the Supreme Court’s decision in Sanjabij Tari v. Kishore S. Boarcar. Consequently, the Court quashed the conviction and sentence dated 12‑06‑2017 and 07‑06‑2018, ordered the applicant’s release if in custody, and disposed of all pending applications.

Issues considered

  • Whether a conviction under the Negotiable Instruments Act can be set aside on the basis of an amicable settlement between the parties.
  • Whether the offence can be compounded under Section 147 of the Negotiable Instruments Act after conviction.
  • Whether the accused is required to deposit a percentage of the cheque amount as costs pursuant to the Supreme Court’s ruling in Sanjabij Tari v. Kishore S. Boarcar.

Legislation cited

Subjects

Negotiable Instruments ActCheque bounceCriminal revisionSettlementComposition under Section 147Quashing convictionCosts depositionCriminal Procedure Code

Judgment

    R/CR.RA/655/2018                             ORDER DATED: 04/05/2026




         IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
    R/CRIMINAL REVISION APPLICATION (AGAINST CONVICTION -
          NEGOTIABLE INSTRUMENT ACT) NO. 655 of 2018
                              With
      CRIMINAL MISC.APPLICATION (DIRECTION) NO. 1 of 2026
       In R/CRIMINAL REVISION APPLICATION NO. 655 of 2018
                              With
           R/CRIMINAL MISC.APPLICATION NO. 3198 of 2022
                                In
         R/CRIMINAL REVISION APPLICATION NO. 179 of 2022
                              With
         R/CRIMINAL REVISION APPLICATION NO. 179 of 2022
==========================================================
   LAKHABHAI D. KANARA PROPRIETOR OF INDIA SALES AGENCY
                           Versus
                  STATE OF GUJARAT & ANR.
==========================================================
Appearance:
SAN ASSOCIATES LLP(8655) for the Applicant(s) No. 1
MR.P B SHARMA(3778) for the Respondent(s) No. 2
MR ROHAN RAVAL, APP for the Respondent(s) No. 1
==========================================================

 CORAM:HONOURABLE MR. JUSTICE HASMUKH D. SUTHAR

                           Date : 04/05/2026

                                ORDER


1. By way of the Criminal Misc. Application (Direction) No. 1 of
2026 In R/Criminal Revision Application No. 655 Of 2018, the
applicant has sought the following relief:

      “A). The Lordship may be pleased to admit and allow this
      Composition Application filed vide present Cr. Misc. Application.


      B). Your Lordship may be pleased to pass necessary order
      under Section -147 of the Negotiable Instruments Act, 1881,
      R/w Section 320(8) of the Criminal Procedure Code, 1973, and
      thereby compound the offence against the accused and
      accordingly the composition application may please be accepted
      and allowed.


      C). Your Lordship may be pleased to set aside the conviction
      and sentence passed by the Metropolitan Magistrate (N.I) Court
      No. 30, Ahmedabad in C.C.No. 849/2016 on dated 12.06.2017.


                                Page 1 of 4
    R/CR.RA/655/2018                                   ORDER DATED: 04/05/2026




      D). Your Lordship may be pleased to set aside the Order of
      conviction passed by the Ld. City Civil & Sessions Court,
      Ahmedabad in Cr. Appeal No. 523/2017 dated 07.06.2018.


      C). Your Lordship may be pleased to dispose the pending
      Cr.Revision Application No.655 of 2018, filed by accused
      pending before this Hon'ble Court as infructuous.


      E). Your Lordship may be pleased to dispose the cross Cr.
      Revision Application No. 179 of 2022 along with Cr. Misc.
      Application No. 3198 of 2022, filed by the complainant pending
      before this Hon'ble court as withdrawn.


      F). Your Lordship may be pleased to grant any other and further
      relief as may be necessary in the interest of justice.”


2. Learned advocate for the applicant has taken this Court
through the factual matrix of the present application. At the
outset, it is submitted that the parties have amicably resolved
the dispute. It is further submitted that in view of the settlement
arrived at between the parties, the present application deserves
to be considered.


3. Learned Additional Public Prosecutor appearing for the State
has opposed the present application and submitted that
considering       the   seriousness    of      the   offence,    the     present
application may not be entertained.


4. The learned advocate appearing for the complainant has
confirmed that the dispute has been settled between the parties.
In this regard, on behalf of respondent No.2 an affidavit has filed
in Criminal Misc. Application (Direction)                No. 1 of 2026 In
R/Criminal Revision Application No. 655 Of 2018 on record


                                 Page 2 of 4
     R/CR.RA/655/2018                           ORDER DATED: 04/05/2026




stating that the respondent No.2 has no objection if the present
application is allowed.


5. In view of the above, it appears that during the pendency of
the present application the matter has been amicably settled
between the parties. In this regard, respondent No.2 has filed an
affidavit on record stating as under:

       “That both parties hereinabove mutually agreed for
       settlement, and as a part of settlement the Second Part
       has handover a Demand Draft of Rs. Ninteen 1944 (Rs.
       19,000001/- bearing No.205988 dated drawn on
       11/02/26, Jamjodhpur Branch, in favour of the First
       Part. The said demand Draft has been accepted by the
       first part as full and final settlement amount, and also
       assured withdrawal of the pending Complaint/ Revision
       before the respective unconditionally..”

6. Having heard the learned advocates for the respective parties
and considering the material placed on record, it appears that
the dispute between the parties has now been amicably resolved.
The complainant has filed an affidavit stating that he has no
objection if the complaint is quashed. Therefore, no fruitful
purpose would be served by continuing the proceedings further.
However, since the accused has settled the dispute at a belated
stage before this Court, in view of the decision of the Hon’ble
Supreme Court in Sanjabij Tari vs. Kishore S Boarcar & Anr.
reported in 2025 INSC 1158, the accused is required to deposit
7.5% of the cheque amount as costs. Accordingly, the applicant
is directed to deposit Rs.1,42,500/- (7.5% of Rs.19,00,000/-)
with the Gujarat State Legal Services Authority.


7.     Resultantly, R/Criminal Revision Application No. 655 of



                               Page 3 of 4
      R/CR.RA/655/2018                                                 ORDER DATED: 04/05/2026




2018; Criminal Misc. Application (Direction) No. 1 of 2026 in
R/Criminal Revision Application No. 655 of 2018; R/Criminal
Misc. Application No. 3198 of 2022 in R/Criminal Revision
Application          No.     179       of    2022;         and      R/Criminal           Revision
Application No. 179 of 2022 as well as all connected application
stand disposed of in view of the settlement arrived at between
the parties. The order of conviction and sentence dated
12.06.2017 passed by the learned Metropolitan Magistrate (N.I.)
Court No. 30, Ahmedabad in C.C. No. 849 of 2016, as well as the
order of conviction dated 07.06.2018 passed by the learned City
Civil & Sessions Court, Ahmedabad in Criminal Appeal No. 523
of 2017, are hereby quashed and set aside, along with all
consequential proceedings arising therefrom qua the present
applicant. If the applicant is in custody, the concerned jail
authority shall release the applicant forthwith, if not required in
connection with any other case. Interim relief, if any, stands
vacated. Direct service is permitted.




                                                                  (HASMUKH D. SUTHAR,J)
ALI



Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: ISTAYAK ALI(HC01093), PRIVATE SECRETARY, at High Court of Gujarat on 04/05/2026 17:55:32




                                             Page 4 of 4


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