Allowed

Mr. Madhusudhan M S v. Mr.S. Nagaraja Chari

Karnataka HC21 Jan 2026CRL.RP/1136/2023

Case brief

AI extract

What is this about?

Conviction under Section 138 NI Act for two dishonoured cheques totalling Rs.1 crore, upheld at appeal stage, was revised after parties amicably settled their underlying land-sale disputes. On a joint application under Section 147 NI Act, the court permitted compounding, set aside the trial and appellate convictions and acquitted the accused.

What did the court decide?

Compounding permitted under S.147 NI Act; convictions in C.C.No.885/2018 and Crl.A.No.1905/2019 set aside; petitioner acquitted; respondent allowed to withdraw Rs.90 lakh deposit.

Mr. Madhusudhan M S Vs Mr.S. Nagaraja Chari — Cheque Dishonour | Karnataka HC (2026)

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NC: 2026:KHC:3402 CRL.RP No. 1136 of 2023

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21^ST DAY OF JANUARY, 2026

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BEFORE

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THE HON'BLE MR. JUSTICE S VISHWAJITH SHETTY CRIMINAL REVISION PETITION NO. 1136 OF 2023 (397(Cr.PC) / 438(BNSS))

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BETWEEN:

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MR. MADHUSUDHAN M S S/O MR. G. SREE RAMAIAH, AGED ABOUT 46 YEARS, R/AT 291/6, 2^ND CROSS, 9^TH MAIN, GOKULA 1^ST STAGE, 2^ND PHASE, MATHIKERE, BENGALURU-560054

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ALSO AT: SLV INFRA PROJECTS, NO.5, 1^ST FLOOR, LAKSHMI COMPLEX, RMV EXTENSION SADASHIVANAGAR, BENGALURU-560080

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…PETITIONER

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Digitally signed by MARKONAHALLI RAMU PRIYA Location: HIGH COURT OF KARNATAKA

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(BY SRI. T. PRAKASH, ADVOCATE)

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AND:

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MR. S. NAGARAJA CHARI S/O LATE S. ESHWARA CHARI, AGED ABOUT 45 YEARS, R/AT NO.7, 26^TH CROSS, KILLARI ROAD, BENGALURU-560053

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…RESPONDENT

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(BY SRI. BALARAM M.L., ADVOCATE)

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NC: 2026:KHC:3402 CRL.RP No. 1136 of 2023

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HC-KAR

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THIS CRL.RP IS FILED U/S. 397 R/W 401 CR.P.C PRAYING TO SET ASIDE THE JUDGMENT DATED 18.08.2023 DISMISSING CRL.A.NO.1905/2019 AND ALSO TO SET ASIDE THE JUDGMENT OF CONVICTION DATED 05.08.2019 PASSED BY THE XIII ADDL. CHIEF METROPOLITAN MAGISTRATE, AT BENGALURU C.C.NO.885/2018 FOR THE OFFENCE PUNISHABLE UNDER SECTION 138 OF N.I. ACT AND PASS SUCH OTHER ORDERS AS THIS HONORABLE COURT DEEMS FIT TO PASS IN THE FACTS AND CIRCUMSTANCES OF THE CASE.

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THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR. JUSTICE S VISHWAJITH SHETTY

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ORAL ORDER

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Accused is before this Court in this criminal revision petition filed under Section 397 read with Section 401 of Code of Criminal Procedure with a prayer to set aside the judgment and order of conviction and sentence passed in C.C.No.885/2018 vide order dated 05.08.2019 by the Court of XIII Additional Chief Metropolitan Magistrate, Bengaluru and the judgment and order of conviction and sentence passed in Crl.A.No.1905/2019 vide order dated 18.08.2023 by the Court of LXVIII Additional City Civil and Sessions Judge, Bengaluru.

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3 - NC: 2026:KHC:3402 CRL.RP No. 1136 of 2023

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HC-KAR

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Heard the learned counsel for the parties.

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The learned counsel for the petitioner and the learned counsel for the respondent jointly submit that the dispute between the parties has been amicably settled during the pendency of this petition at the intervention of the wellwishers and elders of the parties. The parties have decided to give a quietus to all the inter se disputes between them and live peacefully in future.

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They submit that an application - I.A.No.2/2026 under Section 147 of Negotiable Instruments Act, 1881 is filed in this petition with a prayer to permit the parties to compound the offence for which the petitioner has been convicted and sentenced by the Courts below. They submit that this criminal revision petition may be disposed of in terms of the settlement between the parties and the petitioner may be acquitted of the offence for which he has been convicted and sentenced by the Courts below. The parties who are present in person before the Court are identified by their learned advocates.

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NC: 2026:KHC:3402 CRL.RP No. 1136 of 2023

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HC-KAR

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It is submitted that the settlement arrived between

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the parties is voluntary without there being any undue influence or coercion. The application filed under Section 147 of Negotiable Instruments Act, 1881 dated 21.01.2026 is taken on record and the same is signed by the parties and also by their learned advocates.

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In paragraph Nos.1 to 7(f) of the application, it is stated as follows:

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1. That the respondent is the owner of agricultural 1) land bearing Sy. No.23, New Sy.No.23/1, Renumbered as Sy No.23/19 measuring 38 guntas 2) land bearing Sy. No.23, New Sy.No.23/1, Renumbered as Sy No.23/18 measuring 20 guntas, altogether 1 Acre 18 Guntas, situated at Bettanagere Gram Panchayath, Bidadi Hobli, Ramanagara Taluk and Ramanagar District. In the year 2016, the respondent entered into Two Sale Agreements dated 18.08.2016 in respect of the said land in favour of Sri Chikka Veeregowda @ Vijay Kumar and also executed a General Power of Attorney in respect of the same. The said Chikka Veeregowda @ Vijay Kumar has paid a sum of Rs. 18,00,000/- to the respondent herein towards advance sale consideration and the said amount is still lying with him. Subsequently, the said

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NC: 2026:KHC:3402 CRL.RP No. 1136 of 2023

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HC-KAR

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sale transaction could not be completed due to certain reasons and disputes arose between the parties.

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2. In this regard, the respondent has filed O.S. No. 175/2017 before the Court of the District and Session Court, Ramanagara, seeking for cancellation of the 1) land bearing Sy.No.23, New Sv. No.23/1. Renumbered as Sy No.23/19 measuring 38 guntas 2) land bearing Sy. No.23, New Sv. No.23/1. Renumbered as Sy No.23/18 measuring 20 guntas, altogether 1 Acre 18 Guntas, executed in favour of Sri Chikka Veeregowda @ Vijay Kumar and also General Power of Attorney.

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3. Arising out of the same transaction, a criminal case was also filed by the respondent in Crime.No.38/2017 against Chikka veeregowda, the petitioner herein and others, which is now numbered as C.C. No. 19582/2020 and the same is pending before the Court of the 9^th Additional CMM, Bengaluru

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4. In respect of the same transaction, the respondent has also filed a complaint under Section 138 of the Negotiable Instruments Act in P.C.R. No.15652/2017, which was later registered as C.C.No.885/2018 against the petitioner, in respect of two cheques bearing No.000150 and 000151 dated 09.08.2017 for a sum of Rs.50,00,000/each, totaling Rs. 1,00,00,000/-, drawn on HDFC Bank, Mathikere branch, Bangalore alleged to have been given by the

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NC: 2026:KHC:3402 CRL.RP No. 1136 of 2023

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HC-KAR

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petitioner. The learned Trial Court has convicted the petitioner and ordered to pay the double the cheque amount. The said judgment of conviction was questioned by the petitioner before Addl City Civil and Sessions Judge, Bangalore in Crl.A.No.1905/2019. As per the orders of the sessions court, the petitioner herein has deposited a sum of Rs. 20,00,000/(Twenty Lakh Rupees) on 05.11.2019 before the Magistrate court. Out of the same, the respondent has already withdrawn a sum of Rs.10,00,000/-. Subsequently the said Crl.A. was dismissed.

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5. Aggrieved thereby, the petitioner has filed the present Criminal Revision Petition before this Hon'ble Court. In pursuant to the orders of this Hon'ble Court, the petitioner has deposited a sum of Rs.80,00,000/before the Magistrate Court.

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6. During the pendency of this Criminal revision, the respondent herein has collected a sum of Rs 56,00,000/- (Rupees fifty six Lakhs only) by way of DD bearing No.001006 dated 21.02.2023 for a sum of Rs.19,00,000/and also another DD bearing No.001007 dated 21.02.2023 for a sum of Rs.37,00,000/-, all together Rs.56,00,000/pertaining to the subject lands involved in two sale agreements dated 18.08.2016. The said Amount of Rs.56,00,000/- paid by Hanumanthe Gowda to the

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NC: 2026:KHC:3402 CRL.RP No. 1136 of 2023

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HC-KAR

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respondent herein has also to be taken in to consideration for this Compromise.

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7. That now, with the intervention of elders and wellwishers, the parties have amicably settled the matter on the following terms:

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a) The respondent along with all his family members shall execute a registered Sale Deed on 22.01.2026 or at the earliest in favour of Sri Chikkaveere Gowda @ Vijay Kumar in respect of land bearing Sy. No.23. New Sy.No.23/1 renumbered as Sy. No.23/19 measuring 38 guntas 2) land bearing Sy. No.23, New Sy.No.23/1, Renumbered as Sy No.23/18 measuring 20 guntas, altogether 1 Acre 18 Guntas situated at Bettanagere Gram Panchayath, Bidadi Hobli, Ramanagara Taluk and Ramanagar District, which are the Subject matter of Sale agreements dated 18/8/2016 which are involved in this case.

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b) The amount of Rs.56,00,000/- paid by Hanumanthe Gowda to the respondent herein as stated in para no.6 has to be adjusted as part sale consideration of this Compromise.

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8 - NC: 2026:KHC:3402 CRL.RP No. 1136 of 2023

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HC-KAR

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c) Upon execution of the said registered Sale Deed, the petitioner has no objection for release of the remaining amount of Rs.90,00,000/- (Ninety Lakh) which is in court deposit Court i.e., 9^th Additional CMM, Bengaluru in favour of the respondent immediately.

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d) The respondent hereby undertakes to withdraw O.S. No.175/2017 before the Court of the District and Session court, Ramanagara. The respondent hereby further undertakes to withdraw C.C. No. 19582/2020 (Crime No.38/2017) which is pending before the Court of the 9^th Additional CMM, Bengaluru

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e) The respondent hereby agrees that he has no claims whatsoever either from Chikkaveere Gowda @ Vijay Kumar or from the petitioner herein.

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f) In view of the above settlement, the respondent has no objection for compounding of the offence and for acquittal of the petitioner/accused in the present Criminal Revision Petition."

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HC-KAR

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Considering the terms of settlement arrived at between the parties and also taking into consideration that the offence for which the petitioner has been convicted and sentenced by the Courts below is a compoundable offence, I am of the opinion that this criminal revision petition is required to be disposed of in terms of the settlement arrived between the parties and the impugned judgment and order of conviction and sentence passed against the petitioner needs to be set aside.

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Accordingly, the following:

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ORDER

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i) The application - I.A.No.2/2026 filed by the parties to this petition under Section 147 of Negotiable Instruments Act, 1881 is allowed and they are permitted to compound the offence punishable under Section 138 of Negotiable Instruments Act, 1881 for which the petitioner has been convicted and sentenced by the Courts below.

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(ii) Consequently, criminal revision petition is allowed and the judgment and order of conviction and sentence passed in C.C.No.885/2018 vide order dated 05.08.2019 by the Court

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10 - NC: 2026:KHC:3402 CRL.RP No. 1136 of 2023

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HC-KAR

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of XIII Additional Chief Metropolitan Magistrate, Bengaluru and the judgment and order of conviction and sentence passed in Crl.A. No.1905/2019 vide order dated 18.08.2023 by the Court of LXVIII Additional City Civil and Sessions Judge, Bengaluru City are set aside and the petitioner is acquitted of the offence punishable under Section 138 of Negotiable Instruments Act.

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(iii) His bail bonds if any stands cancelled.

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(iv) The amount of Rs.90,00,000/- which the petitioner

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had deposited before the Trial Court in C.C.No.885/2018 is permitted to be withdrawn by the respondent - complainant in terms of the settlement as stated in I.A.No.2/2026.

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Sd/-

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(S VISHWAJITH SHETTY) JUDGE

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List No.: 1 Sl No.: 18

Mr. Madhusudhan M S v. Mr.S. Nagaraja Chari

Case brief

What is this about?

What did the court decide?

Mr. Madhusudhan M S v. Mr.S. Nagaraja Chari

Case brief

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What did the court decide?

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