2015 (6) TMI 1223 - HC - Indian Laws

Dishonor of Cheque - offence punishable u/s 138 of N.I. Act - dispute has been amicably resolved between the parties - HELD THAT - Taking into consideration the fact that the dispute between the parties has been amicably settled, the offence stands compounded. Accordingly, this application is allowed. The order dated 4.1.2014 passed in Criminal Case No. 972 of 2011 by the learned Additional chief Metropolitan Magistrate, NI Act, Court No. 28, Ahmedabad and order dated 22.5.2015 passed in Criminal Appeal No. 36 of 2014 by the learned Additional Sessions Court, City Civil and Sessions Court, Court No. 23, Ahmedabad are hereby ordered to be quashed and set aside.

Summary

Issues involved:
1. Application for invoking revisional powers under Section 397 r/w. Section 401 of the Code of Criminal Procedure, 1973 for quashing judgment and order in Criminal Case No. 972 of 2011.
2. Settlement between parties leading to compounding of the offence punishable under Section 138 of the Negotiable Instruments Act.

Analysis:

1. The judgment pertains to an application by the original accused seeking to utilize the revisional powers of the High Court under Section 397 r/w. Section 401 of the Code of Criminal Procedure, 1973. The applicant sought the quashing of the judgment and order dated 4.1.2014 passed in Criminal Case No. 972 of 2011 by the Additional Chief Metropolitan Magistrate, NI Act, Court No. 28, Ahmedabad, as well as the judgment and order dated 22.5.2015 in Criminal Appeal No. 36 of 2014 passed by the Additional Sessions Court, City Civil and Sessions Court, Court No. 23, Ahmedabad. The matter was taken up for hearing, and it was jointly submitted by the advocates representing the parties that a settlement had been reached.

2. The settlement involved the payment of the cheque amount of Rs. 1,61,000 to the complainant, resulting in the amicable resolution of the dispute between the parties. A settlement deed dated 27.5.2015, sworn before a Notary, was produced on record. In light of this development and the settlement between the parties, the applicant requested the Court to compound the offence punishable under Section 138 of the Negotiable Instruments Act. The respondent No. 2, represented by their advocate, also agreed to the settlement. Consequently, considering the amicable resolution of the dispute, the Court allowed the application.

3. The High Court ordered the quashing and setting aside of the judgment and order dated 4.1.2014 passed by the Additional Chief Metropolitan Magistrate and the judgment and order dated 22.5.2015 passed by the Additional Sessions Court. The accused was set at liberty, provided they were not required in any other offence. The Registry was directed to accept the vakalatnama of the advocate who appeared on behalf of the original complainant. The rule was made absolute, and direct service was permitted. The application was allowed, and the matter was disposed of accordingly.