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M/S. Santhoshi Matha New Marketing v. N/S Grrenchef Appliances Ltd.

Karnataka HC10 Feb 2026CRL.RP/1512/2024

Case brief

AI extract

What is this about?

Karnataka HC criminal revision (CRL.RP No. 1512 of 2024, S Vishwajith Shetty J, 10.02.2026): Section 138 NI Act cheque-dishonour conviction and sentence set aside on amicable settlement and compounding through joint memo; total settlement Rs.7,66,250 (Rs.4,80,000 by Demand Draft plus Rs.2,86,250 withdrawn from trial-court deposit); petitioner acquitted, bail bonds cancelled; S.397/401 CrPC and S.438/442 BNSS; cheque No. 292352 dated 29.06.2019.

What did the court decide?

Impugned judgments and orders of conviction and sentence under Section 138 NI Act set aside; petitioner acquitted; bail bonds, if any, cancelled. ¶41

M/S. Santhoshi Matha New Marketing Vs N/S Grrenchef… — Cheque Dishonour | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Impugned judgments and orders of conviction and sentence under Section 138 NI Act set aside; petitioner acquitted; bail bonds, if any, cancelled.

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Issue for consideration

Whether, in view of the amicable settlement reached between the parties during the pendency of the revision petition, the petitioner convicted for offence punishable under Section 138 of the Negotiable Instruments Act, 1881 should be permitted to compound the offence and have the conviction and sentence set aside.

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Ratio / Principle

Considering the terms of settlement and the compoundable nature of the offence under Section 138 NI Act, the parties are required to be permitted to compound the offence for which the petitioner has been convicted by the Courts below, and the impugned judgment and order of conviction and sentence needs to be set aside.

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Key takeaways

The petitioner is acquitted of the offence punishable under Section 138 of the Negotiable Instruments Act, 1881, and his bail bonds, if any, stand cancelled.ratio¶48

Detailed headnote1 paragraphs

Criminal revision under Section 397 r/w 401 Cr.P.C. (also noted as S.438 r/w 442 BNSS) against conviction and sentence under Section 138 of the Negotiable Instruments Act, 1881 imposed in C.C.No.6133/2019 (XXIV Addl. Small Causes Judge & MACT & ACMM, Bengaluru, 28.02.2022) and by the appellate judgment of conviction and sentence in Crl.A.No.461/2022 (LXVI Addl. City Civil & Sessions Judge, Bengaluru, 20.08.2024). During pendency, the parties amicably settled: the respondent/complainant agreed to receive Rs.7,66,250/- in full and final settlement of the claim on cheque No. '292352' dated 29.06.2019 - Rs.4,80,000/- paid by Demand Draft (No. 986019, Union Bank of India) and Rs.2,86,250/- withdrawn from the deposit before the trial court; a signed joint memo was taken on record. Holding the offence compoundable, the Court permitted compounding, set aside the conviction and sentence, acquitted the petitioner and cancelled his bail bonds, thereby allowing the revision petition.

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NC: 2026:KHC:7731 CRL.RP No. 1512 of 2024

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10^TH DAY OF FEBRUARY, 2026

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BEFORE

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THE HON'BLE MR. JUSTICE S VISHWAJITH SHETTY CRIMINAL REVISION PETITION NO. 1512 OF 2024

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BETWEEN:

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M/S. SANTHOSHI MATHA NEW MARKETING, No.48-16-18, LALITHANAGAR, AKKAYYAPALE, VISHAKAPATNAM-16, ANDHRA PRADESH - 530 016.

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REP BY ITS PROPREIETOR, SRINIVASA RAO, AGED ABOUT 55 YEARS.

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…PETITIONER

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(BY SRI. MANJUNATHA H A, ADVOCATE)

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AND:

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Digitally N/S GRRENCHEF APPLIANCES LTD, signed by KAVYA R SRINIVAS INDUSTRIAL ESTATE, Location: KANAKAPURA ROAD, High court of BNEGLAURU - 560 062. Karnataka REP BY ITS AUTHORIZED AGENT, KARIGOWDA, S/O KARIAPPA, AGED ABOUT 62 YEARS.

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…RESPONDENT

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(BY SRI.L ASHOK KUMAR, ADVOCATE)

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2 - NC: 2026:KHC:7731 CRL.RP No. 1512 of 2024

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HC-KAR

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THIS CRL.RP IS FILED U/S 397 R/W 401 CR.P.C (U/S 438 R/W 442 BNSS) BY THE ADVOCATE FOR THE PETITIONER PRAYING THAT THIS HONOURABLE COURT MAY BE PLEASED TO SET ASIDE THE ORDER OF CONVICTION AND SENTENCE PASSED BY THE XXIV ADDITIONAL SMALL CAUSES JUDGE AND THE MOTOR CLAIMS TRIBUNAL AND ACMM (SCCH-26), BENGALURU ON 28.02.2022 IN CC.NO.6133/2019 AND THE ORDER OF CONVICTION AND SENTENCE PASSED BY THE LXVI ADDITIONAL CITY CIVIL AND SESSIONS JUDGE (CCH-67) AT BENGALURU ON 20.08.2024 IN CRL.A.NO.461/2022 AND ACQUIT THE ACCUSED FOR OFFENCE P/U/S 138 OF NI ACT.

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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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Petitioner is before this Court in this Criminal revision

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petition filed under Section 397 read with Section 401 of Cr.PC, with a prayer to set aside the judgment and order of conviction and sentence passed in C.C.No.6133/2019 and by the Court of XXIV Additional Small Causes Judge and the Motor Accident Claims Tribunal and A.C.M.M, Bengaluru, dated 28.02.2022 and the judgment and order passed in Crl.A.No.461/2022 by the Court of LXVI Additional City Civil and Sessions Judge, Bengaluru, dated 20.08.2024.

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3 - NC: 2026:KHC:7731 CRL.RP No. 1512 of 2024

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HC-KAR

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Learned counsel for the parties jointly submit

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that dispute between the parties has been amicably settled during the pendency of this Criminal revision petition and the respondent/complainant has agreed to receive an amount of Rs.7,66,250/- (Rupees Seven Lakhs Sixty Six Thousand Two Hundred and Fifty only) towards full and final settlement of the claim under the cheque-in-question. They submit that out of the agreed amount a sum of Rs.4,80,000/- (Rupees Four Lakhs Eighty Thousand only) is today paid by the petitioner to the respondent by way of Demand Draft and the balance amount of Rs.2,86,250/- (Rupees Two Lakhs Eighty Six Thousand Two Fifty only) which was in deposit before the Trial Court has been already withdrawn by the respondent/complainant.

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They have filed a joint memo before this Court,

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which is taken on record.

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NC: 2026:KHC:7731 CRL.RP No. 1512 of 2024

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HC-KAR

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The joint memo is signed by the parties and also by their learned advocates. The parties who are present before the Court in person are identified by their learned advocates. In paragraph No.5 of the joint memo, it is stated as follows:

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"5. Now, at the intervention of well wishers, the matter is settled amicably between the Petitioner and Respondent. In view of the said settlement, the Respondent has agreed to receive an amount of Rs.7,66,250/- (Rupees Seven Lakh Sixty Six Two Hundred and Fifty only) as full and final settlement towards his claim in respect of Cheque bearing No. '292352' dated 29.06.2019. Out of the said amount, the Petitioner this day paid an amount of Rs.4,80,000/-(Rupees Four Lakh Eighty Thousand Only) by way of DD bearing No. 986019 drawn at Union Bank of India, Chodavaram, Anakapalli District, Andhra Pradesh and the Respondent has withdrawn the amount of Rs.2,86,250/- (Rupees Two lakh Eighty Six Thousand Two Hundred and Fifty Only) deposited by the Petitioner before the LXVI Addl. City Civil & Sessions Judge, Bengaluru (CCH67) in Crl.Apl.No.461/2022. The Respondent by receiving the aforesaid DD, has acknowledged the receipt of entire settlement amount before this

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5 - NC: 2026:KHC:7731 CRL.RP No. 1512 of 2024

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HC-KAR

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Hon'ble Court. The respondent hereby acknowledges that it has no other claims/dues against the Petitioner. Both the parties prays this Hon'ble Court be pleased to accept the settlement and dispose off the matter in the interest of justice."

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Considering the terms of settlement between the

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parties and also having regard to the fact that the petitioner has been convicted for offence punishable under Section 138 of the Negotiable Instruments Act, 1881, which is compoundable in nature, I am of the opinion that the parties are required to be permitted to compound the offence for which petitioner has been convicted by the Courts below and the impugned judgment and order of conviction and sentence needs to be set aside. Accordingly, the following:

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ORDER

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