Murthy. B Vs H. Govindhaiah — Cheque Dishonour | Karnataka HC (2026)

Murthy. B Vs H. Govindhaiah — Cheque Dishonour | Karnataka HC (2026)

What the court decided

AI extract

Outcome

IA No.1/2026 under Section 147 NI Act allowed, permitting compounding of the offence; consequently the revision petition is allowed; the convictions by both courts below are set aside; petitioner acquitted under Section 138 NI Act; bail bonds, if any, cancelled.

Issue for consideration

Whether the joint application under Section 147 of the Negotiable Instruments Act, 1881 seeking permission to compound the cheque-dishonour offence should be granted, enabling disposal of the revision petition in terms of the amicable settlement between the parties.

Court's answer

The application under Section 147 of the Negotiable Instruments Act, 1881 for compounding the offence is to be granted, and the revision petition is to be disposed of in terms of the settlement arrived at between the parties, since the offence is compoundable.

Ratio / Principle

Upon compounding, the judgments of conviction and sentence dated 01.06.2016 (CC No.18776/2012, XIX Addl. Chief Metropolitan Magistrate, Bengaluru City) and dated 20.04.2018 (Crl.A.No.761/2016, LXV Addl. City Civil and Sessions Judge, Bengaluru) convicting the petitioner under Section 138 of the Negotiable Instruments Act, 1881 are set aside.

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¶¶46

Detailed headnote1 paragraphs

Negotiable Instruments Act, 1881 — Sections 138 and 147 — compounding of cheque-dishonour offence after conviction — Criminal revision petition under Sections 397/401 Cr.P.C. by the accused whose conviction under Section 138 NI Act (trial: CC No.18776/2012, judgment dated 01.06.2016, XIX Addl. CMM, Bengaluru) was upheld in appeal (Crl.A.No.761/2016, judgment dated 20.04.2018, LXV Addl. City Civil and Sessions Judge, Bengaluru). During pendency, parties amicably settled: petitioner paid the cheque amount of Rs.2,25,000/- — Rs.1,12,500/- deposited before the Trial Court and withdrawn by the complainant, balance Rs.1,12,500/- paid in cash — acknowledged by the complainant who declared no further amount due and raised no objection to compounding. Joint application under Section 147 NI Act, supported by affidavits, was allowed; the offence, being compoundable, was compounded; both convictions were set aside; the petitioner was acquitted and his bail bonds, if any, stood cancelled. (Coram: Justice S Vishwajith Shetty; decided 10.02.2026.)

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NC: 2026:KHC:8022 CRL.RP No. 628 of 2018

HC-KAR

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

THE HON'BLE MR. JUSTICE S VISHWAJITH SHETTY CRIMINAL REVISION PETITION NO. 628 OF 2018

BETWEEN:

MURTHY B C/O MAHADEVAPPA R/AT NO.6,4TH MAIN ROAD SHAKAMBARI NAGAR BANASHANKARI 2ND STAGE KANAKAPURA ROAD BENGALURU - 560 078.

…PETITIONER

(BY SRI SOMASHEKHARA HARVI, ADV.)

AND:

H. GOVINDHAIAH S/O HANUMANTHAIAH R/AT NO.13,BYRAPPA LAYOUT RMV 2ND STAGE NAGASHETTYHALLI BENGALURU - 560 062.

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

…RESPONDENT

(BY SRI A.V. RAMAKRISHNA, ADV.)

THIS CRL.RP IS FILED U/S.397 R/W 401 CR.P.C PRAYING TO SET ASIDE THE JUDGMENT OF CONVICTION PASSED BY THE LXV ADDITIONAL CITY CIVIL AND SESSIONS JUDGE, BENGALURU DATED 20.04.2018 IN CRL.A.NO.761/2016 BY CONFIRMING THE JUDGMENT OF CONVICTION OF TRIAL COURT DATED 01.06.2016 PASSED BY THE XIX ADDL.C.M.M., BENGALURU IN C.C.NO.18776/2012 AND ACQUIT THE PETITIONER.

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

CORAM: HON'BLE MR. JUSTICE S VISHWAJITH SHETTY

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ORAL ORDER

Accused is before this Court in this revision petition filed under Section 397 read with Section 401 of Cr.P.C. with a prayer to set-aside the judgment and order of conviction and sentence dated 01.06.2016 passed in CC No.18776/2012 by the Court of XIX Addl. Chief Metropolitan Magistrate, Bengaluru City and the judgment and order dated 20.04.2018 passed in Crl.A.No.761/2016 by the Court of LXV Addl. City Civil and Sessions Judge, Bengaluru.

Learned counsel for the parties jointly submit that the dispute between the parties has been settled amicably during the pendency of this petition and the respondent/complainant has agreed to receive a total sum of Rs.2,25,000/- from the petitioner towards full and final settlement of the amount covered under the cheque in question. They submit that a sum of Rs.1,12,500/- has been deposited by the petitioner before

the Trial Court and the balance amount of Rs.1,12,500/- has been paid in cash by the petitioner to the respondent.

Respondent, who is present in-person before the Court

has acknowledged receipt of aforesaid sum of Rs.1,12,500/-

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NC: 2026:KHC:8022 CRL.RP No. 628 of 2018

HC-KAR

and submits that he has withdrawn the amount of Rs.1,12,500/- deposited by the petitioner before the Trial Court.

Parties, who are present in-person before the Court are identified by their respective Advocates. The application filed by the parties under Section 147 of the Negotiable Instruments Act, 1881, is supported by the affidavit of the parties. The same is signed by the parties and also by their learned Advocates. In paragraph Nos.3 to 6 of the application, it is stated as follows:-

"3. That the accused has agreed to pay a sum of Rs.2,25,000/- which is the cheque amount to the Respondent towards full and final settlement of the claim, to which the Respondent is also agreed.

4. It is submitted that the petitioner already deposited the amount of Rs.1,12,500/- before the trial court and the same was withdrawn by the respondent. Now the petitioner has paid the remaining amount of Rs.1,12,500/- to the Respondent.

5. That the Respondent/Complainant hereby acknowledges receipt of the aforesaid amount and declares that no further amount is due and payable by the Petitioner/Accused.

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6. That the Respondent/Complainant has no objection whatsoever for compounding the offence under Section 147 of the Negotiable Instruments Act, 1881 , and for allowing the above Criminal Revision Petition."

Considering the settlement arrived 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 the prayer made in the application filed under Section 147 of the Negotiable Instruments Act, 1881, needs to be granted and the revision petition is required to be disposed off in terms of the settlement arrived between the parties. Accordingly, the following:-

ORDER

(i) IA No.1/2026 filed by the parties under Section 147 of the Negotiable Instruments Act, 1881, seeking permission of this Court to permit the parties to compound the offence for which petitioner has been convicted and sentenced by the Courts below is allowed. Consequently, the revision petition is allowed .

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(ii) The impugned judgment and order of conviction and sentence dated 01.06.2016 passed in CC No.18776/2012 by the Court of XIX Addl. Chief Metropolitan Magistrate, Bengaluru City and the judgment and order dated 20.04.2018 passed in Crl.A.No.761/2016 by the Court of LXV Addl. City Civil and Sessions Judge, Bengaluru, convicting the petitioner for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881, are set aside.

(iii) Petitioner is acquitted of the offence punishable under Section 138 of the Negotiable Instruments Act, 1881. His bail bonds, if any, stands cancelled.

Sd/(S VISHWAJITH SHETTY) JUDGE

DN List No.: 1 Sl No.: 62