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High Court of Gujarat

THAKOR USHABEN KANUJIversusSTATE OF GUJARAT

Disposal
47-DISPOSAL IN ANY OTHER MODE FH

Holding

The High Court quashed the conviction and set aside the orders of the trial and appellate courts, allowing the revision application.

Summary

Thakor Ushaben Kanuji was convicted under Section 138 of the Negotiable Instruments Act for issuing a bounced cheque and sentenced to three months' simple imprisonment and a fine. He appealed, but the conviction was upheld by the Additional Sessions Judge. A revision application was filed under Sections 397 and 401 of the CrPC, asserting that the dispute with the complainant had been amicably settled and the cheque amount fully paid. Both the complainant and the State appeared, with the complainant confirming settlement and expressing no objection to setting aside the conviction. Relying on the compoundable nature of the offence under Section 147 of the NI Act, and precedents on settlement at a belated stage, the High Court quashed the conviction, ordered the return of a portion of the deposited amount, and directed the applicant's release subject to a cost deposit, extending the benefit of the Probation of Offenders Act.

Issues considered

  • The conviction under Section 138 NI Act can be set aside on the basis of a settlement/compounding of the offence at the revision stage.
  • Whether the court may order release of the accused and restitution of deposited amounts when the offence is compoundable.
  • Whether the court can impose cost and invoke the Probation of Offenders Act in such circumstances.

Legislation cited

Subjects

Negotiable Instruments ActSection 138Compoundable offenceCriminal revisionSettlementProbation of Offenders ActQuashing convictionRestitution

Judgment

   R/CR.RA/757/2021                            JUDGMENT DATED: 17/04/2026




 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
   R/CRIMINAL REVISION APPLICATION (AGAINST CONVICTION -
         NEGOTIABLE INSTRUMENT ACT) NO. 757 of 2021


FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE HASMUKH D. SUTHAR
==========================================================
        Approved for Reporting              Yes       No
                                                       √
==========================================================
                    THAKOR USHABEN KANUJI
                              Versus
                    STATE OF GUJARAT & ANR.
==========================================================
Appearance:
MR KAMLESH S KOTAI(6150) for the Applicant(s) No. 1
MR SURAJ B MATIEDA(10499) for the Respondent(s) No. 2
MR ROHAN RAVAL, APP for the Respondent(s) No. 1
==========================================================
  CORAM:HONOURABLE MR. JUSTICE HASMUKH D. SUTHAR

                          Date : 17/04/2026
                            JUDGMENT

        RULE. Learned APP and learned advocate Mr. Suraj Matieda
waive service of notice of Rule for and on behalf of respective
respondents.

[1.0] Considering the issue involved in the present application and
with consent of the learned advocates appearing for the respective
parties as well as considering the fact that the dispute amongst the
applicant and original complainant has been resolved amicably, this
application is taken up for final disposal forthwith as alleged offence
is bailable and compoundable.

[2.0]   By way of this application under Section 397 read with Section
401 of the Code of Criminal Procedure, 1973 (For short “CrPC”), the


                                Page 1 of 4
   R/CR.RA/757/2021                               JUDGMENT DATED: 17/04/2026




applicant has prayed for quashing and setting aside the judgment
dated 04.10.2021 passed by the learned 2nd Additional Sessions Judge,
Mehsana in Criminal Appeal No.77/2019 as well as the order dated
09.04.2019 passed by the learned Additional Judicial Magistrate,
Mehsana in Criminal Case No.6358/2017, whereby the learned
Magistrate has been pleased to hold the applicant guilty for the
offence punishable under Section 138 of Negotiable Instruments Act,
1881 (for short “NI Act”) and sentenced to undergo SI of three months
and also directed to pay fine of Rs.5000/- and in default of payment of
fine, to undergo further simple imprisonment for one month. The said
order was assailed before the learned 2 nd Additional Sessions Judge,
Mehsana by way of Criminal Appeal No.77 of 2019, which came to be
dismissed vide impugned Judgment and order dated 04.10.2021 and
the order of conviction and sentence has been confirmed and upheld
by the concerned Additional Sessions Judge. Hence, this Revision
Application is filed.

[3.0]   Learned advocate for the applicant has taken this Court
through the factual matrix arising out of the present application. At
the outset, it is submitted that the parties have amicably resolved the
issue. It is further submitted that in view of the fact that the dispute is
resolved, present application deserves consideration.


[4.0]   Learned Additional Public Prosecutor appearing for the State
has opposed the present application and submitted that considering
the seriousness of the offence, present application may be rejected.

[5.0]   Learned advocate for original complainant has reiterated the
contentions raised by the learned advocate for the applicant and also
submitted that the original complainant has filed an affidavit stating



                                 Page 2 of 4
   R/CR.RA/757/2021                             JUDGMENT DATED: 17/04/2026




therein that the complainant has received the entire cheque amount
and she has settled the dispute with the applicant. The             original
complainant as well as the present applicant have personally remained
present and are identified by learned advocates appearing for the
respective parties. On inquiry made by the Court, original complainant
has declared before this Court that the dispute between the applicant
and the original complainant is resolved and cheque amount has
already been paid by the applicant – original accused and therefore,
now the grievance stands redressed. It is therefore submitted that the
present application may be allowed.

[6.0]   At the outset, learned advocates for the respective parties
have jointly submitted that matter is settled and now the original
complainant does not want to pursue further the litigation as
complainant and applicant have settled the matter. Even complainant
has remained present before this Court and stated that he has no
objection if the conviction recorded by the learned Trial Court as well
as Appellate Court is set aside. The learned advocate for the original
complainant upon instructions has also stated that the original
complainant do not have any objection if the amount deposited by the
applicant – accused before the learned trial Court or appellate Court is
returned back to the applicant – accused.

[7.0]   Considering the fact that the dispute is settled between the
parties and the applicant has paid the entire cheque amount and said
fact having been confirmed by the complainant, as the offence is
compoundable one at any stage under Section 147 of the NI Act. But,
as accused has settled the dispute at belated stage before this Court,
in view of the decision rendered in the case of Damodar S. Prabhu Vs.
Sayed Babalal H, reported in 2010(5) SCC 663, accused is required to


                                Page 3 of 4
   R/CR.RA/757/2021                                                           JUDGMENT DATED: 17/04/2026




be saddled with cost and as the accused has already made the
payment/deposited the impugned amount, in view of the judgment of
the Hon’ble Supreme Court in the case of Sanjabij Tari Vs Kishore S.
Borcar, Neutral Citation 2025 INSC 1158, maintaining the conviction
this Court is inclined to extend the benefit under the Probation of
Offenders Act, 1958, to the applicant-accused.

[8.0] Resultantly, this revision application is allowed. The order dated
09.04.2019 passed by the learned Additional Judicial Magistrate,
Mehsana in Criminal Case No.6358/2017 as well as the judgment
dated 04.10.2021 passed by the learned 2nd Additional Sessions Judge,
Mehsana in Criminal Appeal No.77/2019 are hereby quashed and set
aside with respect to the applicant subject to deposit of 7.5% of the
amount of cheque before the Gujarat State Legal Services Authority.

[8.1] The Nazir, District Court, Mehsana is directed to return the
amount towards 25% of the cheque amount deposited by the
applicant – accused before the learned trial Court in compliance of the
order passed by the learned appellate Court after due and proper
verification. On compliance of the said order, if the applicant is behind
the bars, he shall be released subject to deposit of aforesaid amount
of cost, if his presence is no longer required in any other criminal
offence.

[9.0]     The present application is allowed qua applicant. Rule is made
absolute to the aforesaid extent. Direct service is permitted. Record
& Proceedings, if any, be sent back forthwith to the concerned Court.
Rule is made absolute accordingly.
                                                                                      Sd/-
                                                                    (HASMUKH D. SUTHAR, J.)
Ajay
   Original copy of this order has been signed by the Hon'ble Judge.
   Digitally signed by: AJAY CHANDRAN MENON(HC00939), PRINCIPAL PRIVATE SECRETARY, at High Court of Gujarat on 17/04/2026 14:57:01



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