Smt Jayanthi Vs M/S Shree Mahalas Traders — Cheque Dishonour | Karnataka HC (2026)

Smt Jayanthi Vs M/S Shree Mahalas Traders — Cheque Dishonour | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Acquittal of the revision petitioner for the offence under Section 138 of the N.I. Act, subject to payment of Rs.3,00,000/- as undertaken in the joint memo; liberty reserved to the respondent-complainant to take necessary legal action if the balance is not paid on or before 21.10.2026.

Issue for consideration

Whether the criminal revision against the conviction of the petitioner for the offence under Section 138 of the N.I. Act should be disposed of on the basis of the settlement recorded in the joint memo between the complainant and the accused.

Court's answer

The revision petition is disposed of in terms of the settlement recorded in the joint memo between the parties.

Ratio / Principle

The revision petitioner is acquitted for the offence under Section 138 of the N.I. Act, subject to payment of Rs.3,00,000/- as undertaken in the joint memo.

Key takeaways

The balance amount of Rs.3,00,000 is payable to the respondent-complainant on or before 21.10.2026, failing which the respondent-complainant is at liberty to take necessary legal action against the petitioner as per law.ratio¶33
The petitioner is directed to pay Rs.5,000/- as ordered by the Trial Court within two weeks, which shall vest with the State, and produce the receipt within one week thereafter; failing which the matter shall be listed before the Court on 11.08.2026.ratio¶34

Detailed headnote1 paragraphs

Criminal revision under Sections 397/401 CrPC against the judgment dated 28.01.2022 of the Prl. District and Sessions Judge, Udipi in Crl.A.No.1/2018 confirming the conviction dated 18.12.2017 under Section 138 of the N.I. Act passed in C.C.No.2283/2013 by the III Addl. Civil Judge and JMFC, Udipi: disposed of on a joint memo of settlement. Matter settled for Rs.15,00,000/-; Rs.10,00,000/- already paid by account transfer and acknowledged, Rs.2,00,000/- deposited before the Trial Court and withdrawn by the complainant, balance of Rs.3,00,000/- payable on or before 21.10.2026. Petitioner further directed to pay Rs.5,000/- (as ordered by the Trial Court) within two weeks, to vest with the State, producing the receipt within a week thereafter, failing which the matter to be listed on 11.08.2026. Revision petitioner acquitted for the offence under Section 138 of the N.I. Act subject to payment of the balance amount; on default, the complainant is at liberty to take necessary legal action as per law. (Single Judge: H.P. Sandesh, J.)

HC-KAR NC: 2026:KHC:37396 CRL.RP No. 441 of 2022

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CNR: KAHC010130492022

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 21^ST DAY OF JULY, 2026

BEFORE

THE HON'BLE MR. JUSTICE H.P.SANDESH

CRIMINAL REVISION PETITION NO.441 OF 2022

BETWEEN:

SMT. JAYANTHI W/O YOGISH AGED ABOUT 52 YEARS PROPRIETOR OF SRI DURGA TRADERS JAMES COMPUND, KODAVOORU, UDUPI DO GIRIJA POOJARTHI W/O YOGESH R/O SANNIDHI, KOPPALATHOTA KODAVOOR WARD UDUPI TALUK AND DISTRICT-576 106.

…PETITIONER

Digitally signed by DEVIKA M Location: HIGH COURT OF KARNATAKA

(BY SRI. GANESHA R.,ADVOCATE)

AND:

M/S. SHREE MAHALAS TRADERS MAHALASA KRIPA SANYASIMUTT ROAD PADUTHONSE, KEMMANNU POST UDUPI TALUK, REPRESENTED BY ITS PROPRIETOR MR. AJITH PAI S/O LATE T. GOVINDARAYA PAI AGED ABOUT 42 YEARS R/AT NARAYANI SANYASIMUTT ROAD PADUTHONSE, KEMMANNU POST UDUPI TALUK DISTRICT-576 101.

…RESPONDENT

(BY SRI. MOHANKUMARA D., ADVOCATE)

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NC: 2026:KHC:37396 CRL.RP No. 441 of 2022

CNR: KAHC010130492022

THIS CRL.RP IS FILED U/S.397 R/W 401 OF CR.P.C PRAYING TO SET ASIDE THE JUDGMENT AND ORDER DATED 28.01.2022 PASSED BY THE PRL. DISTRICT AND SESSIONS JUDGE, UDUPI IN CRL.A.NO.1/2018 WHEREBY CONFIRMED THE JUDGMENT AND ORDER OF CONVICTION DATED 18.12.2017 PASSED BY THE COURT OF THE III ADDL. CIVIL JUDGE AND JMFC, UDUPI IN C.C.NO.2283/2013 AND TO ACQUIT THE ACCUSED FOR THE OFFENCE P/U/S 138 OF N.I ACT BY DISMISSING THE COMPLAINT FILED BY THE RESPONDENT IN C.C.NO.2283/2013 ON THE FILE OF THE III ADDL. CIVIL JUDGE AND JMFC, UDUPI.

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

CORAM: HON'BLE MR. JUSTICE H.P.SANDESH

ORAL ORDER

Both the complainant and accused are present before the

Court along with their respective counsel.

Both the parties have filed the joint memo. In terms of the joint memo, matter is settled for an amount of Rs.15,00,000/-. The petitioner has already paid an amount of Rs.10,00,000/- to the respondent-complainant by account transfer and the respondent-complainant has acknowledged the same.

The petitioner has also deposited an amount of Rs.2,00,000/- before the Trial Court and same is also

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withdrawn by the respondent-complainant. The balance amount of Rs.3,00,000 is payable to the respondent-complainant and the petitioner has agreed to pay the said amount on or before 21.10.2026 . If the petitioner fails to pay the amount within the said period, the respondent-complainant is at liberty to take necessary legal action against the petitioner as per law. The parties have also understood the terms of compromise and complainant-respondent, who is present before the Court also confirms the settlement and receipt of amount of Rs.10,00,000/- and Rs.2,00,000/- and he is yet to receive only remaining amount of Rs.3,00,000/- as per the joint memo.

The petitioner is also directed to pay the amount of Rs.5,000/- as ordered by the Trial Court within 2 weeks from today which shall vest with the State and produce the receipt for having paid the amount within 1 week thereafter. If the said amount is not paid and receipt is not produced in the Registry, list the matter before this Court on 11.08.2026.

Accordingly, the revision petition is disposed of . The revision petitioner is acquitted for the offence under Section

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NC: 2026:KHC:37396 CRL.RP No. 441 of 2022

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138 of N.I. Act, subject to payment of Rs.3,00,000/- as

undertaken in the joint memo.

Sd/(H.P.SANDESH) JUDGE

ST List No.: 1 Sl No.: 19