Court Quashes Conviction in Cheque Dishonor Case After Settlement, Resolving Core Issue of Compounding Under NI Act - Gujarat High Court

In a significant judgment delivered by the Gujarat High Court on December 4, 2025, the Court addressed a case involving a dispute under Section 138 of the Negotiable Instruments Act, 1881. This Act deals with the dishonor of cheques and the legal consequences thereof. The case, R/CRIMINAL REVISION APPLICATION (AGAINST CONVICTION), challenged the conviction of Ayushdeep Realty Pvt. Ltd. and its representative in a cheque dishonor case. Factual Background of…