- 1 - HC-KAR NC: 2025:KHC-D:8162 CRL.RP No. 100096 of 2021 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 27TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR. JUSTICE K V ARAVIND CRIMINAL REVISION PETITION NO.100096 OF 2021 (397(Cr.PC)/438(BNSS)) BETWEEN: SMT. NAGARATNA SHIVAPOOJI W/O. RAMANAGOUDA, AGED ABOUT 41 YEARS, OCC. DIARY BUSINESS, R/O. VENKATADRI NILAYA, OPPOSITE SATYANARAYANA TEMPLE, SATYANARAYANA PETE, GANGAVATHI-583227, DIST. KOPPAL. …PETITIONER (BY SRI NEELENDRA D.GUNDE, ADVOCATE) AND: MANJUNATH H. S/O. YALLAPPA, AGE. 42 YEARS, OCC. AGRICULTURE AND BUSINESS, R/O. WADDAR STREET, BUS STAND ROAD, GANGAVATHI, DIST. KOPPAL-583227. …RESPONDENT (BY SRI MRUTYUNJAYA S.HALLIKERI, ADVOCATE) THIS CRIMINAL REVISION PETITION IS FILED UNDER SECTION 397 R/W 401 OF CR.P.C., PRAYING TO ALLOW THIS PETITION AND SET-ASIDE THE ORDER DATED 09.03.2021 PASSED IN CRL. APPEAL NO.1/2021 BY LEARNED 1ST ADDITIONAL DISTRICT AND SESSIONS JUDGE, KOPPAL SITTING AT GANGAVATHI THEREBY CONFIRMING THE ORDER PASSED BY LEARNED PRL. CIVIL JUDGE AND J.M.F.C., GANGAVATHI IN C.C.NO.258/2019 DATED 30.10.2019 THEREBY CONVICTING THE PETITIONER FOR OFFENCE PUNISHABLE UNDER SECTION 138 OF NEGOTIABLE INSTRUMENTS ACT AND DIRECTING THE PETITIONER TO PAY A FINE RS.5,25,000/- WITH DEFAULT CLAUSE FOR 6 MONTHS AND ETC. Digitally signed by CHANDRASHEKAR LAXMAN KATTIMANI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC-D:8162 CRL.RP No. 100096 of 2021 THIS CRIMINAL REVISION PETITION, COMING ON FOR BEING SPOKEN TO, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE K V ARAVIND) Heard Sri Neelendra D. Gunde, learned counsel for the petitioner, and Sri Mrutyunjay S. Hallikeri, learned counsel for the respondent. 2. This revision petition was disposed of by order dated 20.06.2025. However, before the order could be signed, the petitioner reported a settlement. Hence, the matter was listed and the order dated 20.06.2025 is recalled. During the course of hearing, both parties have filed an application under Section 147 of the Negotiable Instruments Act, 1881, read with Section 320 of the Code of Criminal Procedure, seeking permission to compound the offence. 3. The petitioner is stated to have borrowed a sum of ₹5,00,000/- on 15.06.2018 from the complainant. In repayment of the said loan, she issued a cheque bearing No. 207393 dated 05.09.2018, drawn on Syndicate Bank, Gangavathi Branch. When the cheque was presented for - 3 - HC-KAR NC: 2025:KHC-D:8162 CRL.RP No. 100096 of 2021 encashment, it was dishonoured with the endorsement ‘funds insufficient’. The complainant issued a statutory notice intimating the dishonour of the cheque. The complainant examined himself as PW1. The petitioner has contended that she was not afforded sufficient opportunity to cross-examine PW1 or to lead her defence evidence. The Trial Court, based on the evidence of PW1 – complainant, convicted the accused for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881, and imposed a fine of ₹5,25,000/-. The Criminal Appeal No. 1/2021 preferred by the petitioner was rejected on the ground of delay. 4. Today, when the matter was taken up, the petitioner and the respondent appeared before this Court along with their respective counsels and filed an application under Section 147 of the Negotiable Instruments Act, 1881, read with Section 320 of the Code of Criminal Procedure, along with the affidavits of both the parties. On perusal of the affidavits, it is stated that the parties have settled the dispute amicably with the intervention of elders, and the cheque amount has been agreed at ₹5,00,000/-, payable by the petitioner. It is further - 4 - HC-KAR NC: 2025:KHC-D:8162 CRL.RP No. 100096 of 2021 stated that a sum of ₹2,62,500/- has already been deposited before the Trial Court, and the balance amount of ₹2,37,500/- shall be paid by the petitioner to the respondent within a period of two months. Both parties, who are present before the Court, have been individually enquired regarding the contents of the affidavits, to which they submitted that they have understood and affirmed the same. 5. The petitioner has no objection to the release of the amount of ₹2,62,500/- deposited before the Trial Court in favour of the respondent. In view of Section 147 of the Negotiable Instruments Act, 1881, the offence under Section 138 of the N.I. Act is compoundable. 6. In the light of the above and having regard to the provisions of Section 147 of the Negotiable Instruments Act, 1881, the following order is passed: ORDER i. The Criminal Revision Petition is disposed of. ii. The order of conviction dated 30.10.2019 in C.C. No.258/2019 and further - 5 - HC-KAR NC: 2025:KHC-D:8162 CRL.RP No. 100096 of 2021 confirmation in Crl.A.No.1/2021 dated 09.03.2021 are hereby set aside. iii. The offence under Section 138 of the N.I. Act is compounded on payment of fine of ₹5,00,000/- as referred to above. iv. Bail bonds, if any stand cancelled. Sd/- (K V ARAVIND) JUDGE CLK CT: UMD List No.: 1 Sl No.: 1