Allowed

M/S.Nivi Knit Fashions v. Rajkumar

Madras HC27 Nov 2025CRL RC/655/2021

Case brief

AI extract

What is this about?

In a revision under Section 138 NI Act, the High Court allowed the petition. The parties reached a settlement, paid the cheque amount, and filed a compounding petition under Section 147 NI Act. The Court recorded the compromise, compounded the offence, set aside the lower courts’ convictions and sentences, and discharged the petitioners.

What did the court decide?

Set aside the conviction and sentence; compounded the offence; discharged the petitioners.

M/S.Nivi Knit Fashions Vs Rajkumar — Cheque Dishonour | Madras HC (2025)

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CRL RC No. 655 of 2021

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 27-11-2025

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CORAM

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THE HONOURABLE MR JUSTICE M. NIRMAL KUMAR

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CRL RC No. 655 of 2021

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CRL MP No.23063 of 2025

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M/s. Nivi Knit Fashions, Rep.by its Proprietor Mr.S.Mohanraj

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2.S. Mohanraj S/o.Subbaiyan, Proprietor Of M/s.Nivi Knit Fashions, Diamond Threatre Backside, Tiruppur.

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Petitioner(s)

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Rajkumar, S/o.Narayanasamy, Proprietor Of M/s.Delta Carriers, Rep.by its Power Agent

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2.P.Natarajan, S/o.Perumalsamy, No.97, USS Street, Gandhi Nagar, Udumalpet.

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Respondent(s)

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https://www.mhc.tn.gov.in/judis

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CRL RC No. 655 of 2021

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PRAYER

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This revision case has been filed to set aside the judgment dated 06.10.2021 made in C.A.No.26 of 2018 on the file of the learned III Additional District and Sessions Court, Tiruppur at Dharapuram confirming the judgment and sentence imposed in C.C.No.219 of 2005 dated 21.02.2018 on the file of the learned Judicial Magistrate I, Udumalpet by allowing this case.

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For Petitioner(s): M/s.M/s.S.N. Arun Kumar for Mr.B.Nambiselvan

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For Respondent(s): AR.Karthik Lakshmanan Counsel for R1

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ORDER

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This revision case has been filed, seeking to set aside the judgment dated

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06.10.2021 made in C.A.No.26 of 2018 on the file of the learned III Additional District and Sessions Court, Tiruppur at Dharapuram confirming the judgment and sentence passed in C.C.No.219 of 2005 dated 21.02.2018 on the file of the

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learned Judicial Magistrate I, Udumalpet, by allowing this case.

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2.The petitioners/accused were convicted in CC No.219 of 2005 by

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judgment dated 21.02.2018 on the complaint filed by the respondent for the

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https://www.mhc.tn.gov.in/judis

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CRL RC No. 655 of 2021

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offence punishable under Section 138 of the N.I.Act and sentenced to undergo

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two years simple imprisonment and to also pay Rs.6,51,682/- as compensation,

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which is doubled the cheque amount of Rs.3,25,840/-.

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Aggrieved by the same, the petitioners/accused preferred an appeal in

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C.A.No.26 of 2018. The learned Sessions Judge by judgment dated 06.10.2021, dismissed the appeal, confirming the conviction and sentence imposed by the trial Court. Against which, the present revision case has been filed.

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4.The gist of the case is that the respondent/complainant doing business

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in the name and style of M/s.Delta Carriers and the petitioners/accused running

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Classic Clothing Company in the name and style of M/s.Nivi Knit Fashions.

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Both were having business relationship for several years. The

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petitioners/accused had purchased various types of yarns from the

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respondent/complainant and during the course of business, the cheques have

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been issued in discharge of the liability. Since the petitioners’ business was not

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being as expected, there was some default in payment to the

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https://www.mhc.tn.gov.in/judis

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CRL RC No. 655 of 2021

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respondent/complainant and thereafter, cheques have been dishonoured.

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Following the statutory procedures, a complaint has been filed.

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On consideration of the evidence adduced by the parties, the trial

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Court, after closure of the evidence on both sides, vide judgment 06.10.2021 convicted the petitioners/accused, which came to be confirmed by the lower

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appellate Court, vide judgment dated 21.02.2018. Hence the Revision.

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The learned counsel for the petitioners/accused submitted that in this

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case, the issue between the petitioners and the respondents got resolved as they

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came to an understanding. The respondents, noticing that the petitioners had sustained loss in business, have agreed to receive the cheque amount. The learned counsel for the respondents/complainants submitted that considering the

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petitioner is having a large business association and also finding that the petitioners had genuinely suffered loss in business, agreed to receive the cheque amount, while foregoing the compensation awarded by the Courts below. The learned counsel produced a copy of the Demand Draft for the cheque amount. A

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https://www.mhc.tn.gov.in/judis

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CRL RC No. 655 of 2021

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scanned copy of the Demand Draft reads as under:

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Both the parties filed a compounding petition duly signed by them and

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CRL RC No. 655 of 2021

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their respective counsel in Crl.M.P.No.23063 of 2025 in Crl.R.C.No.655 of

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2021 invoking Section 147 of the N.I. Act, 1881 for compounding the offence.

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8.The learned counsel for the petitioners is present before this Court and

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the learned counsel for the respondents appeared through Video Conferencing

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and they confirmed the compromise and acceptance of the cheque amount and

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they have no objection to compound the case.

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9.Recording the same, the offence punishable under Section 138 of the

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N.I.Act against the petitioners in CC No.219 of 2005 is compounded. Accordingly, the judgment dated 06.10.2021 made in C.A.No.26 of 2018 passed

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by the learned III Additional District and Sessions Court, Tiruppur at

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Dharapuram as well as the the judgment and sentence passed in C.C.No.219 of 2005 dated 21.02.2018 by the learned Judicial Magistrate I, Udumalpet are

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hereby set aside and the petitioners are discharged from the charges.

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10.In the result, this Criminal Revision Case is allowed.

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https://www.mhc.tn.gov.in/judis

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CRL RC No. 655 of 2021

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Index:Yes/No Internet:Yes

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Neutral Citation:Yes/No

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https://www.mhc.tn.gov.in/judis

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CRL RC No. 655 of 2021

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1.II Additional District and Sessions Court, Tiruppur at Dharapuram

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2.learned Judicial Magistrate I, Udumalpet

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3.RAJKUMAR

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S/o.Narayanasamy, Proprietor Of M/s.Delta Carriers, Rep.By Its Power Agent

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3,.P.Natarajan S/o.Perumalsamy, Both Are Residing At 97, Uss Street, Gandhi Nagar, Udumalpet.

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https://www.mhc.tn.gov.in/judis

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CRL RC No. 655 of 2021

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M.NIRMAL KUMAR J., dn

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CRL RC No. 655 of 2021

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27-11-2025

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https://www.mhc.tn.gov.in/judis

M/S.Nivi Knit Fashions v. Rajkumar

Case brief

What is this about?

What did the court decide?

M/S.Nivi Knit Fashions v. Rajkumar

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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