Authority: High Court of Gujarat at Ahmedabad

Order Date: 04/11/2026

Case Overview

  • Applicant: Hardikbhai Jitendrakumar Vora, Proprietor of Shanta Soap Industries.
  • Respondents: State of Gujarat & an additional respondent.
  • Nature: Criminal Revision Application against conviction under Section 138 of the Negotiable Instruments Act.
  • Advocates: Mr. Ashish M. Dagli (for applicant), Mr. Niraj Sharma (for respondent No.1), Mr. Rajeshkumar Khodiya (for respondent No.2).
  • Prior Settlement: On 02/11/2026, parties reached a settlement; a settlement agreement was placed before the Court. The petitioner deposited 10% of the compounding charges of the cheque amount and produced a xerox copy of the receipt, which was taken on record.
  • Legal Basis: Compounding of the offence under Section 147 of the NI Act was verified as voluntary and permissible.
  • Court Findings: The conviction and sentence passed by the Trial Court and confirmed by the First Appellate Court were quashed and set aside to secure the ends of justice.
  • Cost Determination: Referring to SC judgment in Damodar S. Prabhu v. Sayed Babalal H., AIR 2010 SC 1907, which prescribed 15% cost, the Court reduced the cost to 10% of the cheque amount considering the applicant’s imprisonment and age (approximately 35 years).
  • Payment: The applicant was directed to deposit the 10% amount with the Gujarat State Legal Services Authority, which he has done as recorded.

Final Outcome

  • Conviction and sentence are set aside; the applicant is treated as acquitted.
  • No further imprisonment obligation for the applicant.
  • Applicant must pay 10% of the cheque amount as cost to the Gujarat State Legal Services Authority (already deposited).
  • The revision application is allowed; the rule is made absolute, and direct service is permitted.

Topics: Criminal Revision, Negotiable Instruments Act, Compounding of Offence