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Dinesh C. Khimavat and Ors. Vs Ganesh Pai and Anr. — Cheque Dishonour | Bombay HC (2009)

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Bombay HC
2009
Dinesh C. Khimavat and Ors. Vs Ganesh Pai and Anr.Dinesh C. Khimavat and Ors. v. Ganesh Pai and Anr.

Allowed

Dinesh C. Khimavat and Ors. v. Ganesh Pai and Anr.

Bombay HC16 Nov 2009APPLN/3736/2009

Case brief

AI extract

What is this about?

In a cheque dishonour case under Section 138, the High Court allowed the criminal application after parties settled, paying principal and 18% interest. The court quashed the proceedings and set aside the impugned order relying on Supreme Court precedent.

What did the court decide?

Set aside impugned order and allowed the application to compound proceedings under Section 138 of the Negotiable Instruments Act.

What the court decided

AI extract

Outcome

Set aside impugned order and allowed the application to compound proceedings under Section 138 of the Negotiable Instruments Act.

Issue for consideration

Whether the proceedings under section 138 of the Negotiable Instruments Act can be quashed upon settlement between the parties. +1 more

Detailed headnote1 paragraphs

Proceedings under Section 138 of the Negotiable Instruments Act may be quashed if the offence is compounded between the parties. Intermediary filing of a compromise petition by the petitioner's company is curable by the court without striking it down. The application is allowed to compound the proceedings.

A compact analysis

This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.

A

abs

FARAD CONTINUATION

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

CRIMINAL APPELLATE JURISDICTION

CRIMINAL APPLICATION NO. 3736 OF 2009

Office Notes, Office Memoranda of

Court's or Judge's Orders

Coram, appearances, Court's Orders

or directions and Registrar's Orders

Mr. Vinit Jain i/b Mr. Suresh Jain for the applicant.

Ms. Dimple Shah with Mr. Mayur Shetty i/b Gagrats for respondent no.1.

Ms. M.H. Mhatre, A.P.P. for the State.

CORAM : D.G. KARNIK, JJ.

DATE : 16TH NOVEMBER 2009

P.C. :

Rule. By consent, Rule is made

returnable forthwith.

The petitioner no.2 had issued a cheque

in favour of the respondent no.1 in the sum of

Rs.76,695/- which, on presentation to the bank,

was dishonoured. The criminal complaint

under section 138 of the Negotiable

2

Instruments Act was filed by the respondent no.1 against the petitioners.

Today, counsel for the parties state before me that the matter has been settled between the parties. The petitioners have paid to the respondent no.1 the principal amount of the cheque together with interest thereon at the rate of 18% per annum from the date of the cheque till payment and the respondent no.1 has accepted the said amount in settlement of the claim. The Hon'ble Supreme Court has held that in case of settlement between the parties in respect of an offence under section 138 of the Negotiable Instruments Act, the proceedings can be quashed.

In view of the settlement between the parties, the impugned order is set aside and the application is allowed in terms of prayer clause (b).

(D.G. KARNIK)

Issues for consideration

2 issues framed by the court

AI extract

1.
Whether the proceedings under section 138 of the Negotiable Instruments Act can be quashed upon settlement between the parties.
2.
Whether the high court order maintaining the compounding application should be set aside.

Statutes considered

1 provisions across 1 enactments

AI extract

Negotiable Instruments Act138

Parties & counsel

AI extract

applicant
Office Notes Application Petitioners
respondent
Dimple Shah
respondent
State

Coram

AI extract

D.G. KARNIK

Case details

As recorded by the court registry

Court: Bombay HC
Decided on: 16 Nov 2009 · November
Registered: 13 Aug 2009
Case no.: APPLN/3736/2009
CNR: HCBM010289342009
Topic: Cheque Dishonour
Bench: D.g. Karnik
Disposal: OTHERS DISPOSED OFF

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Cite this judgement

Dinesh C. Khimavat and Ors. v. Ganesh Pai and Anr., APPLN/3736/2009 (BOM), decided on 16 November 2009.

The Bombay High Court publishes no neutral citation for this judgement — cite it by case number and date of decision.

Statutes1

Negotiable Instruments Act138

View all statutes

Bench / Coram

D.G. KARNIK

Parties & counsel