- 1 - NC: 2025:KHC-D:4873 CRL.RP No. 100212 of 2017 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 17TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR. JUSTICE V.SRISHANANDA CRIMINAL REVISION PETITION NO.100212 OF 2017 (397(Cr.PC)/438(BNSS)) BETWEEN: DINESH S/O. MUDDUNNA SHETTY, AGE: 54 YEARS, OCC. BUSINESS, R/O. HOTEL VIJAY SAGAR, NEAR VIJAYA TALKIES, DHARWAD. …PETITIONER (BY SRI K.M. SHIRALLI, AND SRI SADIQ N. GOODWALA, ADVOCATES) AND: RAMAKRISNA S/O. DEVAPPA NAYAK, AGE: 57 YEARS, OCC. ADVOCATE, R/O. NO.203, FIRST FLOOR NECTOR NELAYA, PARASWADI II STAGE, KESWAPURA, HUBBALLI. …RESPONDENT (BY SRI ARAVIND D. KULKARNI, ADVOCATE) THIS CRIMINAL REVISION PETITION IS FILED UNDER SECTION 397 READ WITH 401 OF CR.P.C., SEEKING TO CALL FOR RECORDS OF C.C.NO.1579/2008 ON THE FILE OF II JMFC COURT, HUBBALLI AND RECORDS OF CRIMINAL APPEAL NO.165/2013 FROM THE I ADDL. DISTRICT AND SESSIONS COURT DHARWAD SITTING AT HUBBALLI AND SET ASIDE THE JUDGMENT OF CONVICTION AND SENTENCE DATED 12.04.2013 IN C.C.NO.1579/2008, PASSED BY THE HON’BLE II JMFC COURT, HUBBALLI AND SET ASIDE THE JUDGMENT DATED 30.06.2017 PASSED IN CRIMINAL APPEAL NO.165/2013 BY THE HON’BLE I ADDL. DISTRICT AND SESSIONS COURT DHARWAD SITTING AT HUBBALLI, CONFIRMING THE JUDGMENT OF CONVICTION OF TRAIL COURT AND ACQUIT PETITIONER/ACCUSED HEREIN. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC-D:4873 CRL.RP No. 100212 of 2017 ORAL ORDER (PER: THE HON'BLE MR. JUSTICE V.SRISHANANDA) Heard Sri Sadiq Goodwala, learned counsel for revision petitioner and Sri Aravind D. Kulkarni, learned counsel for respondent. 2. Accused who suffered an order of conviction in C.C.No.1579/2008 confirmed in Crl.A.No.165/2013 is the revision petitioner. 3. After addressing the arguments for considerable amount of time by the counsel for the parties, as an alternative submission, Sri Sadiq N. Goodwala representing the revision petitioner files an affidavit of undertaking requesting the Court to modify the compensation amount, as per se awarding of interest on the amount covered under the cheque is not to be ordered by the learned Magistrate while exercising the power under Section 138 of Negotiable Instruments Act (for - 3 - NC: 2025:KHC-D:4873 CRL.RP No. 100212 of 2017 short, ‘N.I. Act’). Therefore, reasonable amount of compensation can be awarded to the complainant. 4. Revision petitioner has come forward to pay a sum of Rs.1,10,000/- as against the cheque amount of Rs.1,00,000/- and he would undertake to pay the entire balance amount on or before 30.04.2025. 5. Taking note of the rival contentions of the parties and also the settled principles of law that the learned Magistrate does not possess the power to order for interest on the cheque amount by exercising the power under Section 138 of N.I. Act, the submissions made on behalf of the revision petitioner need to be considered. 6. However, Sri Aravind D. Kulkarni, learned counsel for respondent-complainant, submits that under the N.I. Act, when the instrument (in the present case, cheque) does not provide a scope for incorporating the interest clause, Section 80 of the N.I. Act would come into play wherein the interest that could be awarded by the - 4 - NC: 2025:KHC-D:4873 CRL.RP No. 100212 of 2017 Court is to the extent of 18%. Therefore, the order of the Trial Magistrate needs to be confirmed. 7. On perusal of the provision under Section 138 of N.I. Act, Legislature in its wisdom has permitted the learned Magistrate to impose double the cheque amount as the fine amount. 8. Out of fine amount, compensation can be paid. In the case on hand, instead of exercising such power by the learned Trial Magistrate, he has awarded interest at 9% p.a. on the cheque amount, which is impermissible having regard to nature of proceedings before the Trial Magistrate. No doubt, several judgments have ruled that proceedings before the Magistrate under Section 138 of N.I. Act is a quasi civil and quasi criminal proceedings. Assuming that it is a quasi civil proceedings, Magistrate does not enjoy the power to order for interest which is absent in the statute itself. 9. On careful reading of provision of Section 138 of N.I. Act, awarding of interest by the Trial Magistrate - 5 - NC: 2025:KHC-D:4873 CRL.RP No. 100212 of 2017 confirmed by the First Appellate Court, in the case on hand needs to be set aside. 10. However, if the cheque amount alone is ordered to be paid as compensation at this distance of time, it would work harsh on the complainant and the entire exercise of filing the criminal complaint and then opposing the appeal filed by the accused and before this revision Court would be a futile exercise insofar as complainant is concerned. 11. Taking note of the relevant aspects of the matter especially the undertaking that has been filed by the revision petitioner, in the given case, accepting the undertaking that accused is ready to pay Rs.1,10,000/- as against Rs.1,00,000/- cheque amount on or before 30.04.2025 would meet the ends of justice. 12. Accordingly, the following order is passed. ORDER (i) Criminal Revision Petition is allowed in part. - 6 - NC: 2025:KHC-D:4873 CRL.RP No. 100212 of 2017 (ii) While maintaining the conviction of the accused for the offence punishable under Section 138 of N.I. Act, sentence ordered by the Trial Magistrate confirmed by the First Appellate Court is modified by directing the accused to pay Rs.1,10,000/- as against the cheque amount of Rs.1,00,000/- on or before 30.04.2025 (amount if already paid would be given deduction). (iii) Failure to make the balance payment on or before 30.04.2025, accused shall undergo imprisonment for a period of six months. (iv) A sum of Rs.5,000/- ordered by the Trial Magistrate confirmed by the First Appellate Court towards the defraying expenses of the State, is set aside. (v) The amount in deposit, if any, is ordered to be withdrawn by the complainant under due identification. - 7 - NC: 2025:KHC-D:4873 CRL.RP No. 100212 of 2017 Office is directed to return the Trial Court records with a copy of this order forthwith for issuing the modified conviction order. Sd/- (V.SRISHANANDA) JUDGE NAA CT:PA List No.: 2 Sl No.: 5