Facts
The applicant (original accused) was convicted by the Additional Chief Judicial Magistrate, Modasa, on December 30, 2015, in Criminal Case No. 369 of 2010 for an offence under Section 138 of the Negotiable Instruments Act, 1881.
Source reference: p. 2He was sentenced to one year of simple imprisonment and ordered to pay Rs. 5,000 compensation.
Source reference: p. 2This conviction was upheld by the Sessions Judge, Modasa, in Criminal Appeal No. 13 of 2016 on November 30, 2018.
Source reference: p. 2During the pendency of the revision, a settlement was reached between the applicant and the respondent-bank (complainant). On April 16, 2026, the bank issued a "no due certificate" confirming full repayment of the loan amount.
Source reference: p. 3-4Issues
Whether the court can quash a conviction under the Negotiable Instruments Act based on a post-conviction settlement and compounding of the offence.
Source reference: p. 5 / para. 9Law Applied
Section 147 of the Negotiable Instruments Act, 1881, which provides that every offence punishable under the Act shall be compoundable, notwithstanding anything contained in the Code of Criminal Procedure.
Source reference: p. 5 / para. 9Revisional jurisdiction defined by Sections 397 and 401 of the Code of Criminal Procedure, 1908.
Source reference: p. 2 / para. 2Reasoning
The court noted that while the applicant had been concurrently convicted by two lower courts, the subsequent development of a settlement changed the legal landscape of the case.
Source reference: p. 4 / para. 8The respondent-bank produced a statement of account and a letter dated April 16, 2026, acknowledging that the entire loan amount had been repaid and stating they had no objection to the disposal of the revision.
Source reference: p. 4 / para. 8Since Section 147 of the Act grants the Court specific power to compound such offences with the complainant’s consent, and given that the underlying debt (the basis of the Section 138 proceedings) was satisfied, the court found it appropriate to allow the compounding to prevent further incarceration.
Source reference: p. 5 / para. 9Holding
The court allowed the revision application and quashed the judgment and order of conviction dated December 30, 2015, and the appellate order dated November 30, 2018.
The applicant is acquitted of the charges, and his bail bond is revoked. The Court directed the Record & Proceedings to be returned to the concerned lower court immediately.
Source reference: p. 5-6 / para. 10Original Court PDF
PRAKASHBHAI BHURABHAI MARVADIvsSTATE OF GUJARAT
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