In a significant ruling by the Gujarat High Court, the conviction under the Negotiable Instruments Act has been quashed following a settlement in the case. The matter involved the revisionist and the complainant, and after an amicable resolution, the Court allowed for the quashing of the conviction. This decision showcases the importance of possibility for compounding offences in legal proceedings. Stay tuned for more insights on this case! #GujaratHighCourt #LegalUpdates
Facts
- The revisionist is challenging the concurrent findings of the Court below
- The revisionist was convicted under Section 138 of the Negotiable Instruments Act
- The revisionist was ordered to undergo one year of simple imprisonment
- A compensation equal to the amount of the cheque was ordered to be paid, with a consequence of six months of simple imprisonment in case of non-payment
- The revisionist’s appeal in Criminal Appeal No.157 of 2023 was unsuccessful
- The judgment and order of the trial Court was confirmed by the learned Additional Sessions Judge
Arguments
- Learned advocate Mr. Birju Joshi has received instructions to appear on behalf of the complainant
- Mr. Birju Joshi will file his Vakaltnama in the Registry
Analysis
- Both parties and their advocates agree that the dispute has been settled amicably.
- The amount of the cheque in question has been received by the first informant.
- Section 147 of the Negotiable Instruments Act permits compounding of the offence at any stage of the hearing.
- An affidavit from the complainant dated 15.05.2024 supporting the settlement is provided.
- Compounding of the offence is allowed at the stage of the present revision.
- The compounding of the offence is permitted after verifying the voluntary nature of the compromise and the request for compounding.
- The applicants are directed to pay 15% of the cheque amount as costs to the High Court State Legal Services Authority based on the guidelines from the case of Damodar S. Prabhu V/s. Sayed Babalal H. reported in AIR 2010 SC 1907.
- The Court has the authority to reduce costs based on specific facts and circumstances of the case.
- The discretion to reduce costs is within the purview of the Court as mentioned in para-17 of the decision.
Decision
- The impugned judgment and order of conviction under Section 138 of the Negotiable Instruments Act is quashed due to compounding of the offence with the complainant.
- The revisionists are acquitted and not obligated to serve the remaining sentence.
- Revisionists to deposit 15% of the cheque amount with the High Court Legal Services Authority.
- The present revision is allowed upon payment of 15% of the cheque amount within three weeks.
- Any amount paid towards fine by the revisionists will be refunded after verification.
Case Title: DBG CLOTHING PVT LTD THRO KRUTARTH DHARAMDAS GORADIA Vs. STATE OF GUJARAT
Case Number: R/CR.RA/721/2024
