Ruled in favour of Mustakbhai Huseinbhai Bhadarka (Applicant)
In Short
A man convicted for a bouncing cheque managed to settle his money dispute privately with the complainant after losing in lower courts. The High Court accepted their compromise, quashed the conviction, and ordered his release upon paying a small penalty.
The Parties
Party A: Mustakbhai Huseinbhai Bhadarka
Party B: State of Gujarat & Anr.
Advocates & Judges
For Party A: Learned Advocate Mr. Bharat L Bhagyavidhata, Learned Advocate Mr. Dhruvkumar K. Patel, Learned Advocate Mr. Shivam N Thakkar
For Party B: Learned Advocate Ms. Divyangna Jhala, Learned Advocate Ms. Hetal Gohel
Judge(s): Hon'ble Justice M. K. Thakker
What the Case Was About
This case started as a financial dispute involving a dishonoured cheque under the Negotiable Instruments Act. A trial court convicted the accused man in October 2024, and a sessions court later upheld that order in June 2025. Facing jail time and ongoing criminal proceedings, the accused approached the High Court because he and the complainant had finally reached an out-of-court financial settlement.
Judgment Date
13 October 2026
The Outcome
The court ruled in favour of the applicant by allowing the application and quashing the previous conviction orders. The judge ordered the immediate release of the applicant, subject to depositing a small percentage of the cheque amount as a cost with the legal authorities.
What the Court Looked At
- The court noted that the original complainant voluntarily agreed to a full and final financial settlement with the accused.
- The complainant submitted an affidavit stating they received the agreed money and had no remaining grievances.
- The court observed that the dispute was private and monetary in nature, meaning further criminal proceedings would be an abuse of legal process.
- The court considered previous Supreme Court guidelines allowing the closing of cases when parties settle privately.
- The court applied updated Supreme Court guidelines on compounding cheque cases during revision or appeal stages.
"Continuing further with the criminal proceedings in relation to the impugned FIR and the Criminal Case against the applicants-accused would be an unnecessary harassment to the applicants-accused."
What This Means For You
Getting convicted in a cheque bounce case does not always mean the door is completely shut if you and the other party can talk things out. In this case, the applicant secured his freedom and wiped away his criminal record simply because he settled the dues and the complainant agreed to drop the matter. However, settling late in the game—after a trial and an appeal—comes with a price, as the court still requires you to pay a percentage of the cheque amount as a penalty to the legal services authority. If you find yourself tangled in a similar financial dispute or conviction, Setback Solutions can help you understand your options and coordinate next steps clearly and calmly.
You Still Have Options
If you are currently facing a cheque bounce conviction, trapped in endless appeals, or unsure how to negotiate a settlement with a complainant, you do not have to navigate it alone. Exploring a second opinion or evaluating your options for an out-of-court compromise can often change your legal standing. Reach out to Setback Solutions for help understanding your options and coordinating the next step. Please note that Setback Solutions is not a law firm, does not provide legal advice, and never guarantees specific outcomes.