Allowed¶46

Sri Shankar v. Sri Joseph

Karnataka HC23 Jan 2026CRL.RP/1146/2025

Case brief

AI extract

What is this about?

Shankar v. Joseph; CRL.RP No. 1146 of 2025; High Court of Karnataka at Bengaluru; S Vishwajith Shetty J; Section 138 NI Act cheque dishonour conviction; Section 147 NI Act compounding; Lok Adalat settlement Rs.2,40,000; acquittal on compounding; C.C.No.3612/2022; Crl.A.No.428/2024; deposit Rs.1,00,000 withdrawn by complainant.

What did the court decide?

Revision petition allowed; offence under Section 138 N.I.Act compounded under Section 147 N.I.Act; judgments of conviction and sentence by the courts below set aside; petitioner acquitted; bail bonds cancelled; respondent permitted to withdraw Rs.1,00,000 deposited before the Trial Court. ¶46

Sri Shankar Vs Sri Joseph — Cheque Dishonour | Karnataka HC (2026)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the criminal revision petition should be disposed of in terms of the joint application under Section 147 of the N.I.Act permitting compounding of the offence punishable under Section 138 of the N.I.Act, upon amicable settlement between the parties.

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Court's answer

Upon the amicable settlement and the application under Section 147 N.I.Act, the Criminal revision petition is required to be disposed of in terms of the application and the judgment and order of conviction and sentence passed by the Courts below needs to be set aside.

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Ratio / Principle

The application filed by the parties under Section 147 of the N.I.Act is allowed and the parties are permitted to compound the offence punishable under Section 138 of the N.I.Act, for which the petitioner has been convicted and sentenced by the Courts below.

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Key takeaways

The judgment and order of conviction and sentence passed against the petitioner by the Court of Small Causes and ACMM, Bengaluru in C.C.No.3612/2022 dated 13.02.2024, confirmed in Crl.A.No.428/2024 dated 02.05.2025, are set aside; the petitioner is acquitted of the offence punishable under Section 138 of the N.I.Act and his bail bonds, if any, stand cancelled.ratio¶52
The respondent/complainant is permitted to withdraw the amount of Rs.1,00,000 deposited by the petitioner before the Trial Court in C.C.No.3612/2022 in terms of the application filed under Section 147 of the N.I.Act.ratio¶53

Detailed headnote1 paragraphs

Criminal Revision Petition (S.397 r/w S.401 Cr.PC; NC: 2026:KHC:4012) — Offence punishable under S.138 N.I.Act compounded under S.147 N.I.Act pursuant to amicable settlement of Rs.2,40,000 reached through Lok Adalat mediation; judgment and order of conviction and sentence in C.C.No.3612/2022 dated 13.02.2024 (Court of Small Causes and ACMM, Bengaluru), confirmed in Crl.A.No.428/2024 dated 02.05.2025 (LII Addl. City Civil and Sessions Judge, Bangalore), set aside; petitioner acquitted and bail bonds cancelled; respondent/complainant permitted to withdraw Rs.1,00,000 deposited before the Trial Court.

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NC: 2026:KHC:4012 CRL.RP No. 1146 of 2025

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 23^RD 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. 1146 OF 2025

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BETWEEN:

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SRI SHANKAR, S/O LATE JAYARAM, AGED ABOUT 55 YEARS, R/AT NO.165, 2ND MAIN, 2ND CROSS, OPP TO CANARA BANK CHAMARAJPET, NEAR RAYAN CIRCLE, BANGALORE - 560 018.

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…PETITIONER

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(BY SRI. MUNI REDDY M N., ADVOCATE)

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AND:

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Digitally signed by KAVYA R Location: High court of Karnataka

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SRI JOSEPH, S/O YAGAPPA, AGED ABOUT 70 YEARS, RESIDING AT NO.174, 2ND MAIN, 2ND CROSS, CHAMARAJPETE, BANGALORE - 560 018.

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…RESPONDENT (BY SRI.B.V.MANJUNATHA GOWDA, ADVOCATE)

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THIS CRIMINAL REVISION PETITION IS FILED UNDER SECTION.397 R/W 401(FILED U/S.438 R/W SEC.442 BNSS) CR.P.C PRAYING TO SET ASIDE THE JUDGMENT DATED 02.05.2025, PASSED BY THE HONBLE LII ADDL. CITY CIVIL AND SESSIONS JUDGE AT BENGALURU (CCH-53) AND ALSO TO SET ASIDE THE JUDGMENT DATED 13.02.2024 PASSED BY THE

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2 - NC: 2026:KHC:4012 CRL.RP No. 1146 of 2025

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HC-KAR

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SMALL CAUSES JUDGE AND ADDL CMM, BENGALURU VIDE ANNEXURE A AND B AND TO ACQUIT THE PETITIONER FOR THE ALLEGED OFFENCE WHICH ARE P/SU/ 138 OF NI ACT AGAINST HIM.

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THIS PETITION, COMING ON FOR ADMISSION, 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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This Criminal revision petition under Section 397 read with Section 401 of Cr.PC is filed with a prayer to set aside the judgment and order of conviction and sentence passed by the Court of Small Causes and ACMM, Bengaluru, in C.C.No.3612/2022 dated 13.02.2024, which is confirmed in Crl.A.No.428/2024 by the Court of LII Additional City Civil and Sessions Judge, Bangalore vide order dated 02.05.2025.

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Learned counsel for the petitioner and learned counsel for the respondent jointly submit that dispute between the parties has been amicably settled and the respondent/complainant has agreed to receive a sum of Rs.2,40,000/- (Rupees Two Lakhs Forthy Thousand only)

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NC: 2026:KHC:4012 CRL.RP No. 1146 of 2025

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HC-KAR

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from the petitioner towards full and final settlement of the amount covered under the cheque-in-question.

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They submit that parties have filed an application under Section 147 of Negotiable Instruments Act, 1881, (in short 'N.I.Act') with a prayer to permit the parties to compound the offence for which petitioner has been convicted. Accordingly, they pray to dispose of the petition in terms of this application.

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The said submission is placed on record.

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Parties who are present before the Court in person are identified by their learned advocates. Application filed under Section 147 of the N.I.Act is taken on record. The same is signed by the parties as well as by their learned advocates. In paragraph Nos.2 to 4 of the application, it is stated as follows:

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"2. The respondent in the above case appear before this Hon'ble Court through his Advocate, it is the case that, the petitioner was directed to pay an amount of Rs.2,75,000/- in the in Criminal Appeal

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NC: 2026:KHC:4012 CRL.RP No. 1146 of 2025

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HC-KAR

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No.428/2024 judgment dated 02.05.2025. The petitioner has deposited an amount of Rs.50,000/before the trail court, and as per the orders of this Hon'ble Court, the petitioner has deposited another amount of Rs.50,000/- before the trail court totally an amount of Rs. 1,00,000/- has been deposited out of fine amount Rs. 2,75,000/-.

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3. The petitioner submits that, with the intervention of the well-wishers, friends and advocates, the matter was referred to Lok Adalath. The petitioner submits that the mediation between the parties has been successful and the petitioner had agreed to pay an amount of Rs.2,40,000/- as full and final settlement and the respondent in the above petition has agreed for the same.

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4. The petitioner is before this Hon'ble Court today and has paid an, amount of Rs.1,40,000/- by the way of CASH to the respondent, before this Hon'ble Court as full and final settlement. The petitioner has no objections for the respondent to withdraw the amount deposited by the petitioner before the trail court and respondent will have no claims from the petitioner whatsoever in future.

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The respondent/complainant and his advocate

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have acknowledged the receipt of Rs.1,40,000/- (Rupees

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5 - NC: 2026:KHC:4012 CRL.RP No. 1146 of 2025

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HC-KAR

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One Lakh Forty Thousand only) from the petitioner in terms of the application filed under Section 147 of the N.I.Act. In view of the aforesaid, I am of the opinion that the Criminal revision petition is required to be disposed of in terms of the application and the judgment and order of conviction and sentence passed by the Courts below needs to be set aside. Accordingly, the following:

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ORDER

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i. The Criminal revision petition is allowed.

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ii. Application filed by the parties under Section 147 of the N.I.Act is allowed and the parties are permitted to compound the offence punishable under Section 138 of the N.I.Act, for which the petitioner has been convicted and sentenced by the Courts below.

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iii. Consequently, the judgment and order of conviction and sentence passed against the petitioner by the Court of Small Causes and

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6 - NC: 2026:KHC:4012 CRL.RP No. 1146 of 2025

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HC-KAR

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ACMM, Bengaluru, in C.C.No.3612/2022 dated

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13.02.2024, which is confirmed in Crl.A.No.428/2024 by the Court of LII Additional City Civil and Sessions Judge, Bangalore vide order dated 02.05.2025 are

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set aside and the petitioner is acquitted of the offence punishable under Section 138 of the N.I.Act. His bail bonds if any stands cancelled.

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iv. The respondent/complainant is permitted to withdraw the amount of Rs.1,00,000/deposited by the petitioner before the Trial Court in C.C.No.3612/2022 in terms of the application filed by the parties under Section 147 of the N.I.Act.

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Sd/(S VISHWAJITH SHETTY) JUDGE

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KVR

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List No.: 1 Sl No.: 17

Sri Shankar v. Sri Joseph

Case brief

What is this about?

What did the court decide?

Sri Shankar v. Sri Joseph

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

Statutes considered

Procedural history

Parties & counsel

Coram

Case details

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