Authority: High Court of Gujarat at Ahmedabad
Order Date: 27/10/2026
Case Overview
- Petitioners: Arvind Pipes and Fittings Industries Pvt. Ltd. and another, represented by Advocates Jiten H. Ahuja and J.P. Shah, filed Special Criminal Application (Quashing) No.16086 of 2025 under Articles 226 and 227 of the Constitution.
- Respondent: State of Gujarat and another, represented by Additional Public Prosecutor.
- The petition sought to quash the order dated 18/10/2025 passed by the 13th Additional Sessions Judge, Vadodara, in Criminal Appeal No.789 of 2025, which required the petitioners to deposit 20% of the fine/compensation amount for suspension of the sentence.
- Petitioners contended that the cheques issued under an agreement to sell were dishonoured, the property had been sold to a third party, and therefore no legally enforceable debt existed, making the Section 138 NI Act complaint untenable.
- The court examined the agreement to sell, particularly paragraph 4, which confirmed that the cheques were issued as payment for the consideration and were dishonoured, establishing a debt. The court also noted that the petitioners had already been convicted under Section 138 of the Negotiable Instruments Act and had filed an appeal, rendering the petition’s argument misplaced.
Final Outcome
- The High Court dismissed the petition, refusing to quash the 20% deposit order, and upheld the trial court’s condition for suspension of the sentence.
Topics: Negotiable Instruments Act, Criminal Procedure, Judicial Review