Allowed

Sri Satish Shetty v. K Umesh

Karnataka HC1 Sept 2023CRL.RP/190/2015

Case brief

AI extract

What is this about?

The High Court of Karnataka allowed a joint application under Section 147 of the N.I. Act to compound offences of cheque dishonour. Relying on a prior settlement and payment of graded costs, the Court set aside the convictions in six criminal cases and acquitted the accused. All six criminal revision petitions were disposed of as settled.

What did the court decide?

The common joint application under Section 147 of the N.I. Act was allowed. The parties were permitted to compound the offence. The impugned judgments of conviction and orders on sentence in all six c

Sri Satish Shetty Vs K Umesh — Cheque Dishonour | Karnataka HC (2023)

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1 - NC: 2023:KHC:31601 CRL.RP No. 190 of 2015 C/W CRL.RP No. 191 of 2015 CRL.RP No. 192 of 2015 CRL.RP No. 193 of 2015 CRL.RP No. 194 of 2015 CRL.RP No. 195 of 2015

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 1^ST DAY OF SEPTEMBER, 2023

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BEFORE

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THE HON'BLE DR. JUSTICE H.B.PRABHAKARA SASTRY

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CRIMINAL REVISION PETITION NO. 190 OF 2015

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C/W

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CRIMINAL REVISION PETITION NO. 191 OF 2015, CRIMINAL REVISION PETITION NO. 192 OF 2015, CRIMINAL REVISION PETITION NO. 193 OF 2015,

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CRIMINAL REVISION PETITION NO. 194 OF 2015 AND

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CRIMINAL REVISION PETITION NO. 195 OF 2015

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In Criminal Revision Petition No.190/2015

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BETWEEN:

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Digitally signed by BANGALORE MADHAVACHAR VEENA Location: High Court of Karnataka

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Sri. Satish Shetty S/o. Subbanna Shetty, Aged about 50 years R/at #A-101, 102 Sun Swept Apartment Near Kamadenu Complex Lokhandawala Andheri West Mumbai-400 053.

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…Petitioner

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(By Sri. Shivashankarappa, Advocate)

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AND:

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K. Umesh S/o. Late Krishnappa, Aged about 64 years, R/at No.15, 1^st Floor, 3^rd Main, OMBR Layout, Chikkabanasawadi, Bangalore-560043. (By Sri. K. Shrihari, Advocate)

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…Respondent

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This Criminal Revision Petition is filed under Section 397 of the Code of Criminal Procedure, 1973, praying to call for records and to set aside the orders dated 29.12.2014 in Crl.A.No.25118/2013 passed by the Fast Track Court-III, Mayo Hall, Bangalore and the judgment dated 26.08.2013 in C.C.No.26764/2011 passed by the XIV Additional Chief Metropolitan Magistrate, Bangalore and grant such other reliefs as this Court deems fit in the facts and circumstances of this petition including allowing this Revision Petition with costs in the interest of justice and equity.

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In Criminal Revision Petition No.191/2015

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BETWEEN:

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Sri. Satish Shetty S/o. Subbanna Shetty, Aged about 67 years R/at #A-101, 102, Sun Swept Apartment Near Kamadenu Complex Lokhandawala, Andheri West Mumbai-400 053.

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…Petitioner

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(By Sri. Shivashankarappa, Advocate)

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AND:

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K. Umesh S/o. Late Krishnappa, Aged about 64 years, R/at No.15, 1^st Floor, 3^rd Main, OMBR Layout, Chikkabanasawadi, Bangalore-560043.

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…Respondent

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(By Sri. K. Shrihari, Advocate)

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This Criminal Revision Petition is filed under Section 397 of the Code of Criminal Procedure, 1973, praying to call for records and to set aside the orders dated 29.12.2014 in Crl.A.No.25155/2013 passed by the Fast Track Court-III, Mayo Hall, Bangalore and the judgment dated 16.11.2013 in C.C.No.26824/2011 passed by the XVII Additional Small Causes and XXV A.C.M.M., Mayo Hall Unit, Bangalore and grant such other reliefs as this Court deems fit in the facts and circumstances of this petition including allowing this Revision Petition with costs in the interest of justice and equity.

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In Criminal Revision Petition No.192/2015

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BETWEEN:

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Sri. Satish Shetty S/o. Subbanna Shetty, Aged about 50 years R/at #A-101, 102, Sun Swept Apartment Near Kamadenu Complex Lokhandawala, Andheri West Mumbai-400 053.

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…Petitioner

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(By Sri. Shivashankarappa, Advocate)

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AND:

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K. Umesh S/o. Late Krishnappa, Aged about 64 years, R/at No.15, 1^st Floor, 3^rd Main, OMBR Layout, Chikkabanasawadi, Bangalore-560043. (By Sri. K. Shrihari, Advocate)

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…Respondent

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This Criminal Revision Petition is filed under Section 397 read with Section 401 of the Code of Criminal Procedure, 1973, praying to call for records and to set aside the orders dated 29.12.2014 in Crl.A.No.25155/2013 passed by the Fast Track Court-III, Mayo Hall, Bangalore and the judgment dated 16.11.2013 in C.C.No.29387/2010 passed by the XVII Additional Small Causes and XXV A.C.M.M., Mayo Hall Unit, Bangalore and grant such other reliefs as this Court deems fit in the facts and circumstances of this petition including allowing this Revision Petition with costs in the interest of justice and equity.

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In Criminal Revision Petition No.193/2015

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BETWEEN:

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Sri. Satish Shetty S/o. Subbanna Shetty, Aged about 50 years R/at #A-101, 102 Sun Swept Apartment Near Kamadenu Complex Lokhandawala,

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Andheri West Mumbai-400 053.

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…Petitioner

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(By Sri. Shivashankarappa, Advocate)

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AND:

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K. Umesh S/o. Late Krishnappa, Aged about 64 years, R/at No.15, 1^st Floor, 3^rd Main, OMBR Layout, Chikkabanasawadi, Bangalore-560043.

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…Respondent

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(By Sri. K. Shrihari, Advocate)

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This Criminal Revision Petition is filed under Section 397 of the Code of Criminal Procedure, 1973, praying to call for records and to set aside the orders dated 29.12.2014 in Crl.A.No.25074/2013 passed by the Fast Track Court-III, Mayo Hall, Bangalore and the judgment dated 27.04.2013 in C.C.No.26616/2011 passed by the XIV Additional Chief Metropolitan Magistrate, Bangalore and grant such other reliefs as this Court deems fit in the facts and circumstances of this petition including allowing this Revision Petition with costs in the interest of justice and equity.

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In Criminal Revision Petition No.194/2015

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BETWEEN:

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Sri. Satish Shetty S/o. Subbanna Shetty, Aged about 50 years

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6 - NC: 2023:KHC:31601 CRL.RP No. 190 of 2015 C/W CRL.RP No. 191 of 2015 CRL.RP No. 192 of 2015 CRL.RP No. 193 of 2015 CRL.RP No. 194 of 2015 CRL.RP No. 195 of 2015 R/at #A-101, 102 Sun Swept Apartment Near Kamadenu Complex Lokhandawala, Andheri West Mumbai-400 053.

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…Petitioner

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(By Sri. Shivashankarappa, Advocate) AND:

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K. Umesh S/o. Late Krishnappa, Aged about 64 years, R/at No.15, 1^st Floor, 3^rd Main, OMBR Layout, Chikkabanasawadi, Bangalore-560043. …Respondent (By Sri. K. Shrihari, Advocate) ***

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This Criminal Revision Petition is filed under Section 397 read with Section 401 of the Code of Criminal Procedure, 1973, praying to call for records and to set aside the orders dated 29.12.2014 in Crl.A.No.25075/2013 passed by the Fast Track Court-III, Mayo Hall, Bangalore and the judgment dated 27.04.2013 in C.C.No.27207/2011 passed by the XIV Additional Chief Metropolitan Magistrate, Bangalore and grant such other reliefs as this Court deems fit in the facts and circumstances of this petition including allowing this Revision Petition with costs in the interest of justice and equity.

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In Criminal Revision Petition No.195/2015

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BETWEEN:

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Sri. Satish Shetty S/o. Subbanna Shetty, Aged about 50 years R/at #A-101, 102 Sun Swept Apartment Near Kamadenu Complex Lokhandawala, Andheri West Mumbai-400 053.

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…Petitioner

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(By Sri. Shivashankarappa, Advocate)

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AND:

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K. Umesh S/o. Late Krishnappa, Aged about 64 years, R/at No.15, 1^st Floor, 3^rd Main, OMBR Layout, Chikkabanasawadi, Bangalore-560043.

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…Respondent

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(By Sri. K. Shrihari, Advocate)

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This Criminal Revision Petition is filed under Section 397 of the Code of Criminal Procedure, 1973, praying to call for records and to set aside the orders dated 29.12.2014 in Crl.A.No.25117/2013 passed by the Fast Track Court-III, Mayo Hall, Bangalore and the judgment dated 26.08.2013 in C.C.No.26018/2010 passed by the XIV Additional Chief Metropolitan Magistrate, Bangalore and grant such other reliefs as this Court deems fit in the facts and circumstances of this

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petition including allowing this Revision Petition with costs in the interest of justice and equity.

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These Criminal Revision Petitions coming on for Orders, through Physical Hearing/Video Conferencing Hearing this day, the Court made the following:

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COMMON ORDER

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The present six revision petitions have been filed by the common accused, challenging the impugned judgments of conviction and order on sentence passed by

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the Court of the XIV Additional Chief Metropolitan Magistrate, Bangalore (hereinafter for brevity referred to as "the Trial Court") dated 26-08-2013 in C.C.No.26764/2011, dated 27-04-2013 in C.C.No.26616/2011, dated 27-04-2013 in C.C.No.27207/2011 and dated 26-08-2013 in C.C.No.26018/2010 and the judgments of conviction and

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order on sentence passed by the XVII Additional Small Causes and XXV Additional Chief Metropolitan Magistrate, Mayo Hall Unit, Bangalore (hereinafter for brevity referred

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to as "the Trial Court"), both dated 16-11-2013 in

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C.C.No.26824/2011 and C.C.No.29387/2010, convicting

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the accused for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter for brevity referred to as the “N.I. Act”), which were further confirmed by the Fast Track Court-III, Mayohall Unit, Bangalore (hereinafter for brevity referred to as "the Sessions Judge's Court") in the appeals filed by him. Challenging the impugned judgments of conviction and order on sentence passed by both the Courts, the present common revision petitioner (accused) has filed the present revision petitions.

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Learned counsels from both side in all these six revision petitions along with their respective clients, as identified by their learned counsels are physically present in the Court. The revision petitioner (accused) and the respondent (complainant) in all these six matters are common.

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The revision petitioner in all these criminal revision petitions is one Mr. Sathish Shetty, who was the accused in these six criminal cases instituted against him by the present respondent - Sri.K. Umesh Alva, as a complainant.

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The common contention of the complainant in all these six criminal cases was that the accused, for his business purposes and to meet his commitments and other liabilities, had borrowed huge sums of loan from him. With respect to repayment of those loans, he had issued several cheques drawn on his Bank account. However, those cheques when presented for their realisation came to be dishonoured for the reason of insufficiency of funds. It is thereafter the complainant got issued legal notices to the accused, demanding the payment of the cheques' amount. Since the accused did not pay the cheques' amount even after receipt of the legal notices, the complainant was constrained to institute

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the present criminal cases against him for the offence punishable under Section 138 of the N.I. Act.

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In all those criminal cases, the accused appeared through his counsel and contested the matter and several of those matters ended in conviction. Against the same, the accused preferred appeals in the form of criminal appeals in the Sessions Judge's Court. However, those criminal appeals also came to be dismissed by the judgment of the respective Sessions Judges Court. Aggrieved by the same, the accused in the Trial Court has preferred the present criminal revision petitions.

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The details of the criminal cases, the details of the cheques involved, the criminal appeals filed in the present criminal revision petitions, etc. are shown in the following table.

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Sl. No.	Crl.R.P. No.	C.C.No. and date of judgment	Crl.A.No. and date of judgment	Cheque details
1	190/2015	No.26764/2011 dt.26.08.2013 on the file of the XIV Additional Chief Metropolitan Magistrate, Bangalore	No.25118/2013 dt.29.12.2014 on the file of the Fast Track Court-III, Mayo Hall Unit, Bangalore	No.229810 dt.20.11.2009 for `7,50,000/-
2	191/2015	No.26824/2011 dt.16.11.2013 on the file of the XVII Additional Small Causes & XXV Additional Chief Metropolitan Magistrate, Mayo Hall Unit, Bangalore (SCCH-21)	No.25155/2013 dt.29.12.2014 on the file of the Fast Track Court-III, Mayo Hall Unit, Bangalore	No.229802 dt.23.07.2009 for `7,50,000/-
3	192/2015	No.29387/2010 dt.16.11.2013 on the file of the XVII Additional Small Causes & XXV Additional Chief Metropolitan Magistrate, Mayo Hall Unit, Bangalore (SCCH-21)	No.25156/2013 dt.29.12.2014 on the file of the Fast Track Court-III, Mayo Hall Unit, Bangalore	No.229803 dt.11.07.2009 for `10,00,000/-
4	193/2015	No.26616/2011 dt.27.04.2013 on the file of the XIV Additional Chief Metropolitan Magistrate, Bangalore.	No.25074/2013 dt.29.12.2014 on the file of the Fast Track Court-III, Mayo Hall Unit, Bangalore	No.229801 dt.16.07.2009 for `7,50,000/-
5	194/2015	No.27207/2011 dt.27.04.2013 on the file of the XIV Additional Chief Metropolitan Magistrate, Bangalore.	No.25075/2013 dt.29.12.2014 on the file of the Fast Track Court-III, Mayo Hall Unit, Bangalore	No.229809 dt.25.11.2009 for `7,50,000/-

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		No.26018/2010 dt.26.08.2013 on the	No.25117/2013 dt.29.12.2014 on	the	No.229811 dt.29.06.2009
6	195/2015	file of the XIV	file of the Fast	Track	for
		Additional Chief	Court-III, Mayo	Hall	`10,00,000/-
		Metropolitan Magistrate, Bangalore.	Unit, Bangalore

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The respondent (complainant) who is common in

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all these revision petitions, after service of notice upon him, is being represented by his learned counsel in these revision petitions.

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After taking few adjournments on the pretext of settlement of the matters, both side submitted that, in a similar situation, the parties have settled the matter in C.C.No.26052/2012 on the file of the XIV Additional Chief

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Metropolitan Magistrate at Bengaluru in Lok Adalath proceedings where it was agreed to between the parties that, upon payment of total consideration of a sum of `50,00,000/- by the accused to the complainant, the complainant would not press the legal action for recovery of the cheques' amount against the accused in these matters. In the said process, the total quantum of the

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cheques' amount in all these six revision petitions put together would come to a sum of `50,00,000/-. As per the decision of the Hon'ble Apex Court in the case of Damodar

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S. Prabhu Vs. Sayed Babalal H reported in AIR 2010 SUPREME COURT 1907 , the graded cost payable by the accused in all these six cases would come to a sum of 7,50,000/-. However, after hearing the submission made from both side, this Court by a reasoned order dated 20-03-2023 had permitted the accused to pay the graded cost at a sum of 6,00,000/- instead of `7,50,000/-.

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According to the learned counsels from both side, the said graded cost has been paid to the Karnataka State Legal Services Authority, Bengaluru. In that regard, the Legal Services Authority has made a written submission vide its letter dated 07-07-2023, about it receiving a sum of `6,00,000/- through Demand Draft bearing No.005870 dated 03-04-2023 and issuing a receipt bearing

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No.885228 dated 17-04-2023 in that regard. The same is recorded in the order sheet dated 13-07-2023.

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In the light of the above, perused the compromise petition/joint application i.e. I.A.No.3/2023, filed by both the counsel under Section 147 of the N.I. Act, along with the joint affidavit of the petitioner (accused in the Trial Court) and the respondent (complainant in the Trial Court), reporting the settlement between them by way of compromise and seeking acquittal of the petitioner herein (accused) in all the present six criminal cases instituted against him.

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Learned counsels for the parties also make their submission on the lines of the joint application and the joint affidavit filed by the parties.

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In view of the settlement arrived at between the

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parties, the respondent (complainant) submits his 'no

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objection' for acquittal of the petitioner (accused) in the present cases.

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The enquiry made with the parties who are physically present convinces the Court that both the parties out of their free consent and volition and in their best interest have settled the matter amicably which is further corroborated by the submissions made by their learned counsels. The graded cost is also reported to be paid by the accused before the Legal Services authority. As such, I am of the view that on the terms of the said joint application and also joint affidavit, the parties be permitted to compound the offence under Section 147 of the N.I. Act.

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Accordingly, taking into consideration the joint application and the joint affidavit filed by both side, the guidelines given by the Hon’ble Apex Court in Damodar S. Prabhu's case (supra), and also the circumstances of the case on hand, I proceed to pass the following:

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O R D E R

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[i] The common Joint application - I.A.No.3/2023 filed by both side under Section

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147 of the Negotiable Instruments Act, 1881, in

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respect of all these six revision petitions is

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allowed ;

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[ii] The parties to the present petitions are permitted to compound the offence under Section 147 of the N.I. Act;

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[iii] The impugned judgments of

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conviction and orders on sentence passed by the Court of the XIV Additional Chief Metropolitan Magistrate, Bangalore dated 26-08-2013 in C.C.No.26764/2011, dated 27-04-2013 in C.C.No.26616/2011, dated 27-04-2013 in C.C.No.27207/2011 and dated 26-08-2013 in C.C.No.26018/2010 and the

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judgments of conviction and order on sentence passed by the XVII Additional Small Causes and XXV Additional Chief Metropolitan Magistrate, Mayo Hall Unit (SCCH-21), Bangalore, both dated 16-11-2013 in C.C.No.26824/2011 and C.C.No.29387/2010, are set aside and consequently, the impugned judgments passed by the Fast Track Court-III, Mayohall Unit, Bangalore, all dated 29-12-2014, in Criminal Appeal No.25118/2013, Criminal Appeal No.25155/2013, Criminal Appeal No.25156/2013, Criminal Appeal No.25074/2013, Criminal Appeal No.25075/2013 and Criminal Appeal No.25117/2013, confirming the judgments of the Trial Court, also stand set aside;

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[iv] The common revision petitioner herein (accused) – Sri. Satish Shetty, S/o.

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Subbanna Shetty, Aged about 50 years, R/at #A101, 102, Sun Swept Apartment Near Kamadenu Complex, Lokhandawala, Andheri West, Mumbai400053, is acquitted of the offence punishable under Section 138 of the Negotiable Instruments Act, 1881, in all these six revision petitions;

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Accordingly, all these six revision petitions stand disposed of as settled between the parties, as ordered above.

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Registry to transmit a copy of this order to both the Trial Court and also to the Sessions Judge’s Court, along with their respective records, immediately.

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Sd/JUDGE

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List No.: 1 Sl No.: 2

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BMV*

Sri Satish Shetty v. K Umesh

Case brief

What is this about?

What did the court decide?

Sri Satish Shetty v. K Umesh

Case brief

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