2000 (9) TMI 1038 - SC - Companies Law

Summary

Issues: Settlement of money claim during pendency of criminal appeal under Section 138 of the Negotiable Instruments Act.

In this judgment, the Supreme Court addressed a case involving a settlement of a money claim during the pendency of a criminal appeal arising from proceedings under Section 138 of the Negotiable Instruments Act. The main appeal, Criminal Appeal No. 59/99, was against a conviction by the XVth Metropolitan Magistrate, Hyderabad, sentencing the appellants to imprisonment and fines. Interlocutory applications were filed and dismissed, leading to a revision case in the High Court, which was also dismissed. The appellants then appealed against this order. Subsequently, a settlement was reached between the parties, resulting in the appellants depositing the disputed amount in court. The Supreme Court set aside the High Court's order and remitted the matter back to the Appellate Court for consideration of the settlement. The Appellate Court was directed to review the subsequent events, including the payment made by the appellants, and dispose of the appeal accordingly, with the power to set aside the conviction or impose a sentence of imprisonment or fine as per the law. The Court also noted the respondent's statement that if the deposited amount was withdrawn, they would not press for conviction or sentence before the Appellate Court. The Court directed the first respondent to withdraw the amount deposited and disposed of the appeal with these instructions.