Authority: High Court of Gujarat at Ahmedabad
Order Date: 06/11/2026
Case Overview
- Applicant: Shambhusinh Rajput (also referred as Shambhusinh Chandansinh Rajput).
- Respondents: State of Gujarat & Ashvinkumar Shivramdas Patel (proprietor of Mahadev Trading Company).
- The application sought quashing of the judgment and order of conviction and sentence dated 25.03.2025 passed by the 12th Additional Judicial Magistrate First Class, Mahesana in Criminal Case No. 3724 of 2024 under Section 138 of the Negotiable Instruments Act.
- During pendency, parties settled amicably; the complainant filed an affidavit of settlement stating receipt of the agreed amount and consented to compound the offence.
- The complainant, represented by counsel, affirmed the affidavit in court and sought permission to file Vakalatnama, which was accepted.
Legal Reasoning
- Section 147 of the NI Act allows compounding of the offence with the aggrieved party’s consent.
- The amendment to Section 147 gives overriding effect to sub‑section (1) of Section 320 of the Code of Criminal Procedure, 1973, as affirmed in Damodar S. Prabhu v. Sayed Baba Lal, AIR 2010 SC 1907.
- Since the dispute was resolved and the complainant received the settlement amount, the offence is deemed compounded in accordance with the object of the NI Act.
Final Outcome
- The judgment and order of conviction and sentence for the offence under Section 138 of the NI Act are quashed and set aside.
- The applicant, Shambhusinh Rajput, is ordered to be released from jail forthwith.
- The rule is made absolute; direct service is permitted.
Topics: Court Order, Compounding of Offence, NI Act