Civil Suit Cannot Be Amended to Recover Cheque Dishonour Compensation: Gujarat High Court
Overview of the Decision
The Gujarat High Court, in Kailashben Arunkumar Prajapati & Anr. v. Legal Heirs of Deceased Sandipkumar Fatehsinh Vasava & Ors. (Special Civil Application No. 11470 of 2024), delivered on 16 October 2026, affirmed the trial court's refusal to permit an amendment that would have added compensation awarded in cheque dishonour criminal proceedings — along with interest and criminal litigation costs — to an existing civil recovery suit. Justice Maulik J. Shelat held that a statutory mechanism under criminal law already governs the recovery of such compensation, and that the proposed additions rested on a cause of action entirely distinct from the one underlying the pending civil suit.
The petition was filed under Article 227 of the Constitution of India and challenged an order dated 02.03.2024 passed by the 24th Additional Chief Judicial Magistrate, Vadodara.
Background Facts
The Original Civil Recovery Suit
The plaintiffs instituted Special Civil Suit No. 442 of 2014 seeking recovery of ₹31,22,659/- from the defendant. The plaint incorporated particulars of cheques issued by the defendant in favour of the plaintiffs, which were subsequently dishonoured. Since certain dishonoured cheques totalled approximately ₹24,75,000/-, the plaintiffs had, in 2012 — prior to instituting the civil suit — filed criminal complaints under Section 138 of the Negotiable Instruments Act, 1881 against the defendant.
Criminal Proceedings and Appellate Outcome
The trial court acquitted the accused in both criminal cases. The plaintiffs challenged the acquittals by preferring Criminal Appeal Nos. 1672 of 2017 and 1673 of 2017 before the Gujarat High Court. A learned Single Judge of the Gujarat High Court allowed both appeals through a common CAV judgment dated 14.06.2018. The operative portion of that judgment read as follows:
"8. Resultantly, both the appeals succeed and are ALLOWED. The impugned judgments and orders passed by the trial Court in Criminal Case No. 49753 of 2012, Dated: 17.06.2017, so also in Criminal Case No. 2420 of 2013, Dated: 17.06.2017, are QUASHED and set aside.
8.1 So far as Criminal Appeal No. 1672 of 2017 is concerned, the respondent-accused shall pay total sum of Rs.10,00,000/- (TEN LAKH) lakh towards the amount of fine, within a period of SIX WEEKS from the date of receipt of a copy of this order, failing which he shall undergo rigorous imprisonment for one year. Out of the said amount, the appellant, therein, shall be paid compensation of Rs.10,00,000/- (TEN LAKH) by way of an account payee cheque.
8.2 So far as Criminal Appeal No. 1673 is concerned, the respondent shall pay the amount of Rs.16,00,000/- (SIXTEEN LAKH) towards the amount of fine, within a period of SIX WEEKS from the date of receipt of a copy of this order, failing which he shall undergo rigorous imprisonment for one year. The amount of compensation to be paid to the appellant shall be Rs.15,00,000/- (FIFTEEN LAKH) by way of an account payee cheque."
Accordingly, the total compensation directed to be paid to the plaintiffs stood at ₹25,00,000/- across both criminal appeals.
Death of Accused and Abatement Before the Supreme Court
The defendant-accused challenged the High Court's criminal judgment before the Supreme Court by way of Special Leave to Appeal (Criminal) Nos. 5864-5865/2018. During the pendency of those proceedings, the original accused died on 14.05.2021. The Supreme Court dismissed the special leave petitions as abated vide order dated 23.08.2021, which recorded:
"Mr. D. N. Ray and Mr. Shushil R. Shukla, learned Advocates appearing for the petitioner submit that the petitioner died as a result of COVID-19 pandemic on 14.05.2021. Statement is recorded. The Special Leave Petitions are dismissed as abated. Pending applications, if any, also stand disposed of."
As a consequence, the Gujarat High Court's compensation order remained undisturbed.