T.K.Rajan Vs P.Jaganathan — Cheque Dishonour | Madras HC (2026)

T.K.Rajan Vs P.Jaganathan — Cheque Dishonour | Madras HC (2026)

What the court decided

AI extract

Outcome

Revision allowed: conviction and sentence imposed on the petitioner (trial judgment dated 09.01.2024 in C.C. No. 761 of 2014, confirmed on 24.01.2025 in Crl.A. No. 126 of 2024) set aside; petitioner acquitted under Section 138 NI Act; respondent permitted to withdraw the Rs.75,000/- deposit with accrued interest; fine, if any, to be refunded; bail bond, if any, discharged.

Issue for consideration

Whether the conviction of the petitioner under Section 138 of the Negotiable Instruments Act and the sentence imposed (as confirmed in appeal) should be set aside in view of the compromise arrived at between the parties.

Court's answer

The offence under Section 138 of the Negotiable Instruments Act is compoundable; in view of the compromise arrived at between the parties, the Court was inclined to set aside the conviction and sentence imposed on the petitioner by the trial Court.

Ratio / Principle

The conviction and sentence imposed upon the petitioner by judgment dated 09.01.2024 in C.C. No. 761 of 2014 (XIX Metropolitan Magistrate, Egmore @ Allikulam, Chennai), confirmed by judgment dated 24.01.2025 in Crl.A. No. 126 of 2024, are set aside and the petitioner is acquitted of the offence under Section 138 of the Negotiable Instruments Act.

Key takeaways

The respondent is permitted to withdraw Rs.75,000/- deposited to the credit of C.C. No. 761 of 2014 before the trial Court, with accrued interest, by filing appropriate application; any fine paid by the petitioner shall be refunded and any bail bond executed shall stand discharged.ratio¶34

Detailed headnote1 paragraphs

Criminal Revision (S.438 r/w 442 BNSS) — Negotiable Instruments Act, S.138 — petitioner convicted by XIX Metropolitan Magistrate, Egmore @ Allikulam, Chennai in C.C. No. 761 of 2014 (judgment dated 09.01.2024: simple imprisonment 3 months, compensation Rs.2,00,000/-, default simple imprisonment 4 weeks), confirmed by XXI Additional Sessions Judge in Crl.A. No. 126 of 2024 (judgment dated 24.01.2025) — pending revision, parties compromised; respondent/de facto complainant agreed to accept Rs.2,75,000/- in full and final settlement; Rs.2,00,000/- paid on 28.01.2026 and balance Rs.75,000/- lay deposited to the credit of the C.C. — offence under S.138 NI Act being compoundable and compromise having been arrived at, conviction and sentence set aside and petitioner acquitted — respondent permitted to withdraw Rs.75,000/- deposit with accrued interest on application; fine, if any, refunded; bail bond, if any, discharged.

Crl.R.C. No. 1644 of 2025

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 28.01.2026

CORAM

THE HONOURABLE MR. JUSTICE SUNDER MOHAN

Crl. R.C. No. 1644 of 2025

T.K. Rajan, S/o. Kannaiyan, No. 5/3, Chinna Thambiran Street, Erukkancherry, Chennai –600 118. ..Petitioner

Vs.

P. Jaganathan, S/o. Paulraj, No. 93.G.N.T. Road, Erukkancherry, Chennai – 600 118. ..Respondent

Prayer: Criminal Revision Petition under Section 438 r/w 442 of BNSS to

set aside the judgment dated 09.01.2024 passed in C.C. No. 761 of 2014 by

the learned XIX Metropolitan Magistrate, Egmore @ Allikulam, Chennai which has been confirmed by the judgment dated 24.01.2025 passed in Crl.A. No. 126 of 2024 by the learned XXI Additional Sessions Judge, City Civil Court, Allikulam, Chennai.

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Crl.R.C. No. 1644 of 2025

For Petitioner :: Mr.A. Kumanaraja For Respondent :: Ms.M. Saranya

O R D E R

The revision challenges the judgment dated 24.01.2025 passed in Crl.A. No. 126 of 2024 by the learned XXI Additional Sessions Judge, City Civil Court, Allikulam, Chennai confirming the judgment dated 09.01.2024 passed by the learned Magistrate in C.C. No. 761 of 2014 convicting the petitioner for the offence under Section 138 of Negotiable Instruments Act and sentencing him to undergo simple imprisonment for 3 months and to pay compensation of Rs.2,00,000/- carrying a default sentence of simple imprisonment for 4 weeks.

Pending the revision, the parties have arrived at a compromise and the respondent/de facto complainant has agreed to receive a sum of Rs.2,75,000/- in full and final settlement of all his claims against the petitioner.

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Crl.R.C. No. 1644 of 2025

The learned counsel for the petitioner has filed a memo

dated 28.01.2026 stating that a sum of Rs.2,00,000/- (Rupees Two Lakhs only) has been paid today by the revision petitioner to the respondent as per order dated 18.12.2025.

The respondent is present in person identified by his counsel and

he also confirmed the same.

Learned counsel for the respondent would submit that the

respondent has received a sum of Rs.2,00,000/- by cash today and that the balance amount of Rs.75,000/-, which has been deposited to the credit of C.C. No. 761 of 2014 may be permitted to be withdrawn by the respondent.

In view of the compromise arrived at and since the offence under Section 138 of the Negotiable Instruments Act is compoundable, this Court is inclined to set aside the conviction and sentence imposed on the petitioner by the trial Court.

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Crl.R.C. No. 1644 of 2025

Accordingly, the conviction and Sentence imposed upon the petitioner vide judgment dated 09.01.2024 in C.C.No.761 of 2014 passed by the learned XIX Metropolitan Magistrate, Egmore @Allikulam, Chennai and confirmed by the judgment dated 24.01.2025 made in Crl.A.No.126 of 2024 passed by the learned XXI Additional Sessions Judge, City Civil Court, Allikulam, Chennai, are set aside and the petitioner is acquitted of the offence under Section 138 of the Negotiable Instruments Act.

The respondent is permitted to withdraw Rs.75,000/-/- [Rupees Seventy Five Thousand only] deposited to the credit of C.C. No. 761 of 2014 before the trial Court, with accrued interest, by filing appropriate application. Fine amount, if any, paid by the petitioner shall be refunded. Bail bond, if any, executed shall stand discharged.

28.01.2026

Neutra Citation: Yes/No

nv

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Crl.R.C. No. 1644 of 2025

To

XXI Additional Sessions Judge, City Civil Court, Allikulam, Chennai.

XIX Metropolitan Magistrate, Egmore @Allikulam, Chennai.

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Crl.R.C. No. 1644 of 2025

SUNDER MOHAN,J.

nv

Crl.R.C. No. 1644 of 2025

28.01.2026

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