Settlement of Cheque Amount: Gujarat High Court’s Landmark Judgement

In a significant legal development, the Gujarat High Court has granted a revision application in a case involving the settlement of a cheque amount. The applicant, involved in agricultural activities, sold goods to the accused parties, leading to a cheque bounce situation. Following a confirmed settlement between the parties, the Court allowed the revision application, setting aside previous judgements. This ruling showcases the importance of timely settlements in financial disputes and upholding justice.

Facts

  • The present revision application is filed under Section 397 read with Section 401 of the Code of Criminal Procedure.
  • Challenging the impugned judgement and order of conviction and sentence passed by the Chief Judicial Magistrate, Bharuch in Criminal Case No 6529/2019.
  • Also challenging the order passed by the Principal District Judge, Bharuch in Criminal Appeal No 6/2023.
  • A cheque was issued for repayment of goods, but it was returned due to insufficient funds.
  • Complainant, engaged in agricultural activities, sold goods to the accused persons.
  • The learned Sessions Court confirmed the judgement of conviction imposed by the Trial Court.
  • The accused was convicted for the offence under Section 138 of the Negotiable Instruments Act.
  • The accused was sentenced to one year of simple imprisonment and a fine of Rs. 10,000/-.
  • Compensation of Rs. 1,43,035/- was awarded under Section 357(3) of the Code of Criminal Procedure.

Analysis

  • Learned advocate for the petitioner submitted that the whole amount of the cheque has been paid to the complainant.
  • Complainant has confirmed the settlement between the parties and has no objection to the revision application being allowed.
  • Based on the settlement of the cheque amount, the Court is inclined to allow the present revision application.

Decision

  • The main revision application is allowed.
  • The Criminal Misc. Application is allowed as well.
  • The judgment and order passed in Criminal Appeal No. 6/2023 dated 10.05.2024 and Criminal Case No. 6529 of 2019 dated 07.12.2022 are quashed and set aside.
  • Cost is required to be imposed as per the judgment in the case of Damodar S. Pradbhu Vs. Sayed Babalal H. as per the decision in 2010 (5) SCC 663.
  • The applicant is directed to deposit Rs. 21,000/- in the High Court Legal Aid Service Authority within four weeks.

Case Title: UMANG TRADING CO. PARTNER RANCHHODBHAI PREMJIBHAI AAHIR Vs. STATE OF GUJARAT

Case Number: R/CR.RA/725/2024

Click here to read/download original judgement

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