2006 (8) TMI 685 - HC - Indian Laws

Summary

Issues:
1. Appeal against conviction and sentence under Section 138 of the Negotiable Instruments Act.
2. Compounding of the offence under Section 138 during the trial or through the power of revision.
3. Effect of compounding the offence on the accused.

Analysis:
1. The petitioner was convicted and sentenced under Section 138 of the Negotiable Instruments Act by the Judicial Magistrate 1st Class, Bhiwani. The petitioner's appeal against this judgment was dismissed by the Additional Sessions Judge, Bhiwani, leading to the filing of the present revision. The revision was based on a compromise reached between the parties, which was recorded in a settlement deed. The parties voluntarily agreed to the terms of the compromise, leading to the court directing their appearance before the Additional Sessions Judge, Bhiwani for recording their statements in terms of the compromise.

2. Section 147 of the Negotiable Instruments Act states that the offence under Section 138 is compoundable. The compounding of the offence can be done during the trial or by the High Court or Court of Session while exercising its power of revision under Section 401 of the Criminal Procedure Code. The compounding of the offence has the effect of acquittal of the accused, as per Section 320(8) of the Cr.P.C. In this case, since the parties voluntarily settled the matter and agreed to compound the offence, the court found it appropriate to allow them to do so, resulting in the acquittal of the petitioner from the charge under Section 138 of the Negotiable Instruments Act. The conviction and sentence imposed on the petitioner were set aside as a result of the compounding of the offence.

3. The judgment delivered by T.P.S. Mann, J. of the Punjab and Haryana High Court accepted the revision, leading to the acquittal of the petitioner from the charge under Section 138 of the Negotiable Instruments Act. The decision highlighted the importance of voluntary settlement between the parties and the compounding of the offence, which ultimately resulted in the petitioner being acquitted and the conviction and sentence being set aside.