Smt T Sandhya Vs Sri S Rangaswamy — Cheque Dishonour | Karnataka HC (2026)

Smt T Sandhya Vs Sri S Rangaswamy — Cheque Dishonour | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Criminal revision petition allowed in terms of the joint petition under Section 147 NI Act: both conviction orders (CC No.23937/2012 dated 24.05.2016 and Crl.A.No.733/2016 dated 15.11.2018) set aside; acquittal of the offence under Section 138 NI Act recorded (order wording: "the petitioner is acquitted"); complainant permitted to withdraw the Rs.77,000/- deposited before the Trial Court.

Issue for consideration

Whether, in view of the settlement arrived between the parties (joint petition dated 19.01.2026 filed under Section 147 NI Act), the criminal revision petition is to be disposed of in terms of the joint petition and the impugned judgments set aside, rather than adjudicated on merits. +1 more

Court's answer

In view of the settlement arrived between the parties, the criminal revision petition is disposed of in terms of the joint petition filed under Section 147 NI Act, and the impugned judgment and order of conviction and sentence passed by both Courts is set aside.

Ratio / Principle

The judgment and order of conviction and sentence passed by the Court of XXII Addl. Chief Metropolitan Magistrate, Bengaluru, in CC No.23937/2012 dated 24.05.2016 is set aside.

Key takeaways

The judgment and order dated 15.11.2018 passed in Crl.A.No.733/2016 by the Court of LX Addl. City Civil and Sessions Judge, Bengaluru, is set aside.ratio¶46
Acquittal is pronounced of the offence punishable under Section 138 of the N.I. Act; the operative order is worded "the petitioner is acquitted of the offence punishable under Section 138 of the N. I. Act".ratio¶50
The amount of Rs.77,000/- deposited by the respondent/accused before the Trial Court in CC No.23937/2012 is permitted to be withdrawn by the complainant.ratio

Detailed headnote1 paragraphs

High Court of Karnataka at Bengaluru (S Vishwajith Shetty J., oral order dated 19.01.2026) disposed of CRL.RP No.1339 of 2018, filed by the complainant (Smt. T. Sandhya) under Ss.397/401 Cr.P.C. seeking restoration of the trial-court compensation reduced by the appellate court in a S.138 NI Act matter against the accused-respondent (Sri S. Rangaswamy). On counsel jointly reporting settlement, a joint petition dated 19.01.2026 under S.147 NI Act was taken on record, recording payment of a further Rs.25,000/- by Demand Draft dated 19.01.2026 (acknowledged towards full and final settlement) and earlier deposits of Rs.2,000/- (to Government), Rs.22,500/- and Rs.52,500/- before the CMM Court. Holding the petition "required to be disposed off in terms of the joint petition", the Court set aside (i) the conviction and sentence in CC No.23937/2012 (XXII Addl. CMM, Bengaluru, 24.05.2016: fine Rs.2,000/- and compensation Rs.1,50,000/- with default simple imprisonment) and (ii) the appellate judgment in Crl.A.No.733/2016 (LX Addl. City Civil and Sessions Judge, 15.11.2018: sentence modified to fine Rs.77,000/-), recorded acquittal of the offence punishable under S.138 NI Act (operative wording: "the petitioner is acquitted"), and permitted the complainant to withdraw the Rs.77,000/- deposited before the Trial Court. Revision petition allowed. No precedent is engaged; the disposal rests wholly on the settlement/compounding material.

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NC: 2026:KHC:2648 CRL.RP No. 1339 of 2018

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19^TH DAY OF JANUARY, 2026

BEFORE

THE HON'BLE MR. JUSTICE S VISHWAJITH SHETTY CRIMINAL REVISION PETITION NO. 1339 OF 2018

BETWEEN:

SMT. T. SANDHYA W/O K MANJUNATHA R/AT NO.37/2 VIJAYKUMAR BUILDING SUBBAMMA COMPOUND CHANDAPURA ANEKAL TALUK BENGALURU - 560 056.

…PETITIONER

(BY SRI. MURTHY K.,ADVOCATE)

AND:

Digitally signed by NANDINI M S Location: HIGH COURT OF KARNATAKA

SRI S RANGASWAMY S/O SEENAPPA AGED ABOUT 42 YEARS R/AT NO.419 9TH E MAIN ROAD VIJAYANAGAR BANGALORE - 560 040.

…RESPONDENT

(BY SRI. R G HEGDE., ADVOCATE)

THIS CRIMINAL REVISION PETITION IS FILED UNDER SECTION 397 READ WITH 401 CR.P.C PRAYING TO SET ASIDE THE ORDER IN SO FAR AS REDUCING THE FINE AMOUNT FROM RS.1,50,000/- TO RS.77,000/- PASSED BY THE LX ADDITIONAL CITY CIVIL AND SESSION JUDGE, BANGALORE (CCH-61) VIDE ITS JUDGMENT DATED 15.11.2018 IN CRL.APPEAL NO.733/2016 AND CONFIRM THE ORDER/JUDGMENT IN C.C.NO.23937/2012 DATED 24.05.2016 PASSED BY THE XXII ADDITIONAL CHIEF METROPOLITAN MAGISTRATE, BANGALORE.

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

CORAM: HON'BLE MR. JUSTICE S VISHWAJITH SHETTY

ORAL ORDER

This Criminal Revision Petition under Section 397 read

with Section 401 of Cr.P.C. is filed by the complainant with a prayer to set-aside the judgment and order dated 15.11.2018 passed in Crl.A.No.733/2016 by the Court of LX Addl. City Civil and Sessions Judge, Bengaluru and confirm the judgment and order dated 24.05.2016 passed in CC No.23937/2012 by the Court of XXII Addl. Chief Metropolitan Magistrate, Bengaluru.

Heard the learned counsel for the parties.

Learned counsel for the petitioner and learned counsel for the respondent submit that dispute between the parties has been settled and respondent/accused has paid a further sum of Rs.25,000/- to the petitioner vide Demand Draft dated 19.01.2026 drawn on Karnataka Bank Ltd., City Civil Court, Bengaluru, bearing No.611143.

Learned counsel for the petitioner has acknowledged receipt of the aforesaid Demand Draft from the respondent

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towards full and final settlement of the dispute between the parties.

Respondent herein was convicted by the Trial Court in CC No.23937/2012 and sentenced to pay fine of Rs.2,000/- and in default, to undergo simple imprisonment for a period of two months. The Trial Court had further awarded compensation of Rs.1,50,000/- to be paid to the petitioner/complainant by the respondent/accused and in default of payment of compensation, accused was directed to undergo simple imprisonment for a period of one year.

The said judgment and order of conviction and sentence was challenged by the respondent in Crl.A.No.733/2016 which was partly allowed by the Court of LX Addl. City Civil and Sessions Judge, Bengaluru, by judgment and order dated 15.11.2018 and the sentence imposed by the Trial Court in CC No.23937/2012 was modified and the respondent/accused was sentenced to pay fine of Rs.77,000/- and in default, to undergo simple imprisonment for a period of two months.

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In furtherance of the submissions made, joint petition dated 19.01.2026 is filed by the learned Counsels appearing for the petitioner and the respondent herein, which is also signed by the respondent, reporting the settlement arrived between the parties. The said joint petition filed under Section 147 of the Negotiable Instruments Act, 1881, is taken on record. In paragraph Nos.4 and 5 of the said joint memo, it is stated as follows:-

"4. The respondent-accused has deposited a sum

of rupees 2,000/- before the Court of CMM Bengaluru on 06-08-2017 being the amount to be appropriated to the Government. The respondentaccused deposited a sum of rupees 22,500/before the Court of CMM Bengaluru on 06-082017. The respondent-accused deposited a sum rupees 52,500/- before the Court of CMM Bengaluru on 14-08-2019.

5. Now on the intervention of well wishers both the parties have amicably settled the matter. The respondent-accused has paid a sum of rupees 25,000/- to the petitioner-complainant. In view of the payment made by the respondent-accused stated above, the petitioner-complainant is hereby satisfied and expressed his wish to withdraw the complaint. In terms of the settlement, the conviction order may kindly be

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set-aside and the petitioner-complainant may kindly be permitted to withdraw the complaint. The petitioner-complainant may be permitted to withdraw the amount deposited before CMM Court, Bengaluru in CC 23937 of 2012. Accordingly, the petitioner and respondent be permitted to compound the offence punishable under Section 138 of N.I.Act in the interest of justice."

In view of the settlement arrived between the parties, I am of the opinion that this criminal revision petition is required to be disposed off in terms of the joint petition and the impugned judgment and order of conviction and sentence passed by both the Courts need to be set-aside. Accordingly, the following order:-

The criminal revision petition is allowed. The judgment and order of conviction and sentence passed by the Court of XXII Addl. Chief Metropolitan Magistrate, Bengaluru, in CC No.23937/2012 dated 24.05.2016 and the judgment and order dated 15.11.2018 passed in Crl.A.No.733/2016 by the Court of LX Addl. City Civil and Sessions Judge, Bengaluru, are set-aside

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and the petitioner is acquitted of the offence punishable under

Section 138 of the N. I. Act.

The amount of Rs.77,000/deposited by the

respondent/accused before the Trial Court in CC No.23937/2012 is permitted to be withdrawn by the

complainant.

Sd/(S VISHWAJITH SHETTY) JUDGE

DN List No.: 1 Sl No.: 52