Abatement of Criminal Revision upon Accused's Death and Release of Deposited Compensation following Civil Settlement.

The applicants were convicted by the lower courts for an offense under Section 138 of the Negotiable Instruments Act, 1881, and ordered to pay compensation of Rs. 4,44,000/-

During the pendency of this revision application, the applicant no. 2 (sole proprietor of applicant no. 1) expired on April 24, 2023

Meanwhile, the deceased applicant’s wife entered into a settlement with the respondent no. 2 (Bank) during civil execution proceedings in a Lok Adalat on September 13, 2025

As per the settlement, the Bank was permitted to withdraw Rs. 75,000/-, which had been deposited by the applicant earlier in the Ankleshwar Court as a condition for bail and suspension of sentence

1. Whether the criminal revision proceedings should be closed following the death of the applicant and a subsequent civil settlement between heirs and the complainant

2. Whether the Court should direct the release of deposited funds to the complainant bank in light of the settlement arrived at during execution proceedings

Section 138 of the Negotiable Instruments Act, 1881, which governs criminal liability for dishonored cheques

Section 357 of the Code of Criminal Procedure, 1908, regarding the court's power to award compensation

The principle of compounding/amicable settlement in quasi-criminal matters, facilitated here through the Legal Services Authorities Act framework (Lok Adalat)

The Court reviewed the affidavit filed by the Manager of the respondent bank and noted the death certificate of the applicant

Since the applicant had expired, the primary criminal liability could no longer be enforced personally; however, the court addressed the financial directions regarding compensation

The Court found that because the legal heir of the deceased (the wife) and the bank had reached a settlement in the related civil execution proceedings, and the bank had already agreed to accept the Rs. 75,000/- deposit as part of that resolution, it was appropriate to give effect to this settlement in the criminal revision to finalize the litigation

The Court directed the concerned trial court to permit the respondent no. 2 (Bank) to withdraw the amount of Rs. 75,000/- deposited vide receipt no. 1518761. The Records and Proceedings (R&P) were ordered to be sent back to the lower court forthwith