Authority: High Court of Gujarat at Ahmedabad
Order Date: 05/11/2026
Case Overview
- Parties: Hemantbhai Chandulal Vyas, proprietor of Donna Chem (Applicant) vs. State of Gujarat & Anr. (Respondents).
- Nature: Criminal revision application under Section 138 of the Negotiable Instruments Act (cheque bounce) seeking quash of conviction and sentence; accompanied by a criminal miscellaneous application for stay.
- Background: Applicant was convicted by the Trial Court and the conviction was confirmed by the First Appellate Court. A settlement was reached between the parties, and the applicant deposited 10% of the cheque amount as compounding charges, producing a xerox copy of the receipt.
- Legal Basis: Compounding of offence permissible under Section 147 of the NI Act; the court verified the voluntary character of the compromise.
Final Outcome
- The court quashed and set aside the conviction and sentence, treating the applicant as acquitted on account of the compounding of the offence.
- The applicant is relieved from serving the remaining sentence.
- Following the Supreme Court decision in Damodar S. Prabhu v. Sayed Babalal H. (AIR 2010 SC 1907), the applicant is directed to pay costs equal to 15% of the cheque amount to the Gujarat State Legal Services Authority, but the amount is reduced to 10% considering the applicant’s age (approximately 69 years) and prior imprisonment.
- The revision application (CR.MA No.1 of 20226) is allowed, the rule is made absolute, and direct service is permitted.
- The related criminal miscellaneous application for stay is also disposed of.
Topics: Legal Dispute, Cheque Bounce, Compounding of Offence