Ruled in favour of M/s. Saurabh Industries and Anr. (Applicants/Accused)
In Short
A businessman was previously convicted by a trial court for a bounced cheque worth over five lakh rupees. However, after the accused paid the full pending amount and settled the dispute directly with the complainant outside court, the High Court stepped in to cancel the conviction. The court accepted the settlement because the original complainant stated they had no objection to dropping the case.
The Parties
Party A: M/s. Saurabh Industries through Proprietor Saurabh Dineshbhai Shah & Anr.
Party B: State of Gujarat & Digvijay Dineshbhai Dhami (Original Complainant)
Advocates & Judges
For Party A: Learned Advocate Mr. Hardik A. Bhatt
For Party B: Learned Advocate Mr. Dhawan Jaiswal (APP), Learned Advocate Mr. Harsh Rachchha
Judge(s): Hon'ble Justice M. K. Thakker
What the Case Was About
The case began as a dispute over a bounced cheque amounting to five lakh thirty thousand rupees. A trial court in Rajkot had found the applicants guilty and convicted them under the law dealing with cheque bounces back in April 2022. While the legal battle continued, the parties managed to resolve their differences outside the courtroom. The accused paid off parts of the money during the trial, and the remaining balance was cleared by the petitioner's wife. With every single rupee of the cheque amount finally paid back, the complainant agreed to drop all charges, prompting the parties to approach the High Court to clear the record.
Judgment Date
19/10/2026
The Outcome
The court allowed the application and completely quashed and set aside the earlier conviction order passed by the trial court. The accused were ordered to be released immediately unless needed in any other legal matter, subject to depositing a specific percentage of the cheque amount as costs.
What the Court Looked At
- The court noted that the accused and the complainant had reached an out-of-court settlement.
- The complainant filed an affidavit confirming he received the full cheque amount of five lakh thirty thousand rupees and had no objection to the conviction being cancelled.
- The court observed that forcing the criminal case to continue would serve no useful purpose and would only cause unnecessary harassment.
- The court highlighted guidelines regarding settling cheque bounce cases at the High Court stage, which require paying a percentage of the cheque amount as a cost for late settlement.
"As the deponent has received the entire cheque amount and the dispute between the petitioners and the deponent herein is amicably settled, the deponent - original complainant has no objection if the judgement and order... is quashed."
What This Means For You
This case shows that even if you have already been convicted by a lower court for a bounced cheque, settling the financial dispute with the complainant can still offer a way out. The applicants got into trouble because a cheque bounced and they could not clear the dues before the trial ended, leading to a criminal conviction. However, their willingness to eventually pay every single rupee—helped by family members stepping in—persuaded the complainant to forgive the debt and support dropping the case. If you find yourself facing a conviction, making a clean financial settlement and getting the complainant's consent can be a powerful turning point in higher courts. Setback Solutions can help you understand these practical options and coordinate your next steps in plain language without any legal jargon.
You Still Have Options
If you are already convicted and out of money, or struggling with a lingering cheque bounce case that feels impossible to resolve, you do not have to face it alone. Exploring a settlement or seeking a second opinion on your case can open doors you thought were closed. Reach out to Setback Solutions for plain-language help and coordination to understand what options remain on the table. Please remember that Setback Solutions is not a law firm and does not provide legal advice or guarantee outcomes, but is here to help you navigate your next steps with clarity.