Udal Singh Vs State of U.P. and Another — Cheque Dishonour | Allahabad HC (2025)

Udal Singh Vs State of U.P. and Another — Cheque Dishonour | Allahabad HC (2025)

What the court decided

AI extract

Outcome

Application disposed of: applicant directed to file compounding proceedings under Section 147 N.I. Act by 19.05.2025, court below to decide preferably within 45 days; no coercive action against the applicant till 45 days, conditional on compliance with the terms and timeline, failing which the protection stands vacated without reference to the Bench.

Issue for consideration

Whether the application under Section 528 BNSS seeking quashing of the impugned order dated 16.01.2024 passed by the Additional Chief Judicial Magistrate, Khurja, Bulandshahar in Complaint Case No.1131 of 2023 under Section 138 N.I. Act should be allowed.

Court's answer

The application is disposed of with a direction to the applicant to file proceedings for compounding under Section 147 of the N.I. Act by 19.05.2025, and the court below is directed to decide the same expeditiously, preferably within 45 days.

Ratio / Principle

Till 45 days, no coercive action shall be taken against the applicant with respect to the order dated 16.01.2024 passed in Complaint Case No.1131 of 2023.

Key takeaways

The protection accorded is conditional upon compliance with the terms, conditions and timeline fixed; in case of default, the order shall stand vacated without reference to the Bench.ratio¶12

Detailed headnote1 paragraphs

Allahabad High Court (Vikas Budhwar, J.) disposed of an application under Section 528 BNSS seeking quashing of the order dated 16.01.2024 passed by the Additional Chief Judicial Magistrate, Khurja, Bulandshahar in Complaint Case No.1131 of 2023 (M/s Knshu Securities Vs. Udal Singh) under Section 138 N.I. Act. On the applicant's statement at Bar, the applicant was directed to approach the court below for compounding of the offence under Section 147 of the N.I. Act, in light of Damodar S. Prabhu Vs. Syed Babalal, (2010) 5 SCC 663, by 19.05.2025, with the court below directed to decide such application expeditiously, preferably within 45 days. Till 45 days, no coercive action was to be taken against the applicant; the protection was made conditional on compliance with the terms, conditions and timeline, failing which the order would stand vacated without reference to the Bench. Learned A.G.A. raised no objection.

Neutral Citation No. - 2025:AHC:74262

Court No. - 73

Case :- APPLICATION U/S 528 BNSS No. - 6315 of 2025

Applicant :- Udal Singh Opposite Party :- State of U.P. and Another Counsel for Applicant :- Adesh Kumar,G.A.,Komal Prasad Counsel for Opposite Party :- G.A.

Hon'ble Vikas Budhwar,J.

Heard Sri Adesh Kumar, learned counsel for the applicant and Sri Indrajeet Singh Yadav, learned A.G.A.

Though the application u/s 528 BNSS has been preferred by the applicant for quashing the impugned order dated 16.01.2024 passed by learned Additional Chief Judicial Magistrate, Khurja, Bulandshahar in Complaint Case No.1131 of 2023 (M/s Knshu Securities Vs. Udal Singh). U/s 138 N.I. Act, but learned counsel for the applicant has made a statement at Bar that as per instructions received by him, the applicant would approach the court below for compounding of the offences under Section 147 of the N.I. Act and a direction be issued to the court below to decide the application in light of the judgment in the case of Damodar S. Prabhu Vs. Syed Babalal , (2010) 5 SCC 663 and till the said application is preferred, protection be accorded.

Learned A.G.A. has no objection to the same.

Considering the submissions so made across the Bar, the application is disposed of directing the applicant to file the proceedings for compounding under Section 147 of N.I. Act by 19.05.2025 and the court below is directed to decide the same with most expedition, preferably within 45 days.

Till 45 days from today, no coercive action shall be taken against the applicant with respect to the order dated 16.01.2024 passed by learned Additional Chief Judicial Magistrate, Khurja, Bulandshahar in Complaint Case No.1131 of 2023 (M/s Knshu Securities Vs. Udal Singh). U/s 138 N.I. Act.

The protection accorded to the applicant is only available subject to compliance of terms and conditions and timeline as

provided herein and in case of default, the order shall stand vacated without reference to the Bench.

Order Date :- 8.5.2025 N.S.Rathour

(Vikas Budhwar, J)

Digitally signed by :- NIPENDRA SINGH RATHOUR High Court of Judicature at Allahabad