RAVISHANKAR RAMSHUMRAMversusSTATE OF GUJARAT
- Disposal
- 47-DISPOSAL IN ANY OTHER MODE FH
- Bench
- GITA GOPI
Holding
The conviction under Section 138 NI Act is quashed as the offence was lawfully compounded with the aggrieved’s consent, per Section 147, which overrides Section 320(1) CPC.
Summary
The applicant was convicted under Section 138 of the Negotiable Instruments Act for dishonour of a cheque, a conviction affirmed by the appellate court. The applicant filed a criminal revision seeking quashal of the conviction, asserting that the dispute was settled and the complainant, who was the brother of the accused, had executed a power of attorney and consented to compound the offence. The complainant, represented by the accused’s brother, submitted an affidavit confirming receipt of the full cheque amount (50% in court and the balance in cash) and expressed a desire to compound the matter under Section 147 of the NI Act. The Court held that Section 147, as amended, provides an overriding effect over Section 320(1) of the Code of Criminal Procedure, allowing compounding with the aggrieved’s consent. Consequently, the conviction and sentence were quashed, the applicant was acquitted, and the amount deposited with the courts was ordered to be paid to the power of attorney holder.
Issues considered
- Whether an offence punishable under Section 138 of the Negotiable Instruments Act can be compounded with the consent of the aggrieved party.
- Whether Section 147 of the Negotiable Instruments Act overrides the provisions of Section 320(1) of the Code of Criminal Procedure regarding compounding of offences.
- Whether the conviction and sentence should stand despite an amicable settlement and payment of the cheque amount.
Legislation cited
- Code of Criminal Procedure, 1973s. 320(1)
- Negotiable Instruments Acts. 138, s. 147
Subjects
Judgment
R/CR.RA/2152/2025 ORDER DATED: 09/04/2026
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/CRIMINAL REVISION APPLICATION (AGAINST CONVICTION -
NEGOTIABLE INSTRUMENT ACT) NO. 2152 of 2025
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RAVISHANKAR RAMSHUMRAM
Versus
STATE OF GUJARAT & ANR.
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Appearance:
MR KARAN Y VYAS(8539) for the Applicant(s) No. 1
MR VISHAL T. PATEL(6518) for the Respondent(s) No. 2
MR BHARGAV PANDYA APP for the Respondent(s) No. 1
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CORAM:HONOURABLE MS. JUSTICE GITA GOPI
Date : 09/04/2026
ORDER
1. RULE. Learned advocates waive service of Rule on behalf of
the respective respondents.
2. Challenge in this Revision Application is given to the judgment
and order of conviction and sentence dated 29.11.2023,
passed by the learned Principal Judicial Magistrate First Class,
Mansa in Criminal Case no.1008 of 2021, which was
confirmed by the judgment and order dated 29.10.2025
passed by the learned 2nd Additional Sessions Judge,
Gandhinagar in Criminal Appeal no.249 of 2023.
3. Learned advocate for the applicant submitted that the
affidavit-in-reply cum compromise affidavit has been placed
on record of the power of attorney, who is the real brother of
the complainant. By way of power of attorney, the
complainant-brother has given all the power to Patel
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R/CR.RA/2152/2025 ORDER DATED: 09/04/2026
Dilipkumar Madhabhai, who is before this Court.
3.1 Patel Dilipkumar Madhabhai has stated that the total 50% of
the cheque amount is before the trial court and the rest of the
amount has been paid in cash and since he has received the
total money, he under the instructions of his brother, does not
want to proceed with the matter and stated that his brother
has expressed the desire to compound the dispute.
4. Learned advocate for respondent no.2 – original complainant
has placed on record the affidavit-in-reply cum compromise
affidavit and stated that the complainant has received the
amount as agreed between the parties and the complainant
does not want to pursue the matter now in view of amicable
settlement and has given consent for compounding the
offence. The same is taken on record. Today, respondent no.2
is present before this Court and the respondent no.2 has
affirmed the contents of the affidavit and is identified by
learned advocate Mr. Vishal Patel for respondent no.2.
5. Since the complainant has given consent for compounding the
offence, keeping in mind the object of Section 147 of the NI
Act, which is an enabling provision which provides for
compounding the offence and may require the consent of the
aggrieved for compounding the offence, however, the specific
provision under Section 147, inserted by way of amendment
towards special law, would give overriding effect to sub-
section (1) of Section 320 of the Code of Criminal Procedure,
1973 as has been observed in the case of Damodar S. Prabhu
v. Sayed Baba Lal, AIR 2010 SC 1907. Accordingly, as the
dispute has been resolved and the amount has been paid to
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R/CR.RA/2152/2025 ORDER DATED: 09/04/2026
the complainant, in consonance with the object of the N.I. Act
and the provisions under Section 147 thereof, the matter is
considered as compounded.
6. In aforesaid view of the matter, the judgment and order
passed by the learned Trial Court of conviction and sentence
for the offence punishable under Section 138 of the NI Act, as
affirmed by the learned Appellate Court, are quashed and set
aside. The applicant stands acquitted.
6.1 The amount of Rs.3,25,000/- which is deposited before the
trial Court as well as the appellate Court has to be paid to
Patel Dilipkumar Madhabhai on behalf of his brother as the
power of attorney holder. Thus, the trial Court as well as the
appellate Court are directed to pay the amount as deposited
in connection with the proceedings under Section 138 of the
present matter to Patel Dilipkumar Madhabhai by verifying
copy of the power of attorney and by verifying the identity.
7. Accordingly, the present application is allowed in the above
terms. Rule is made absolute to the aforesaid extent. Direct
service is permitted.
(GITA GOPI,J)
PARMAR KRISH/287
Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: PARMAR KRISH(HC02348), ENGLISH STENO GRADE-II\, at High Court of Gujarat on 09/04/2026 18:18:16
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