2018 (12) TMI 1301 - HC - Indian Laws

Dishonor of Cheque - recovery of outstanding loan - whether a compromise, at this stage, can be permitted to be effected between the parties where the petitioner has been charged under Section 138 of the Act? - Held that - This court is not powerless in such situation and adequate powers have been conferred upon it not only under sections 397 read with Section 401 or Section 482 Cr.P.C. but also under Section 147 of the Act for accepting the settlement entered into between the parties and to quash the proceedings arising out of the proceedings, which have consequently culminated into a settlement. This power has been conferred to subserve the ends of justice or/and to prevent abuse of the process of any Court. Though, such power is required to be exercised with circumspection and in cases which do not involve heinous and serious offence of mental depravity or offences like murder, rape, dacoity etc. This Court after being satisfied that the cheque amount with the assessed cost and interest has been paid, can close the proceedings even in absence of the complainant. Since, the petitioner has paid the entire compensation amount, therefore, quashing of the complaint initiated at the instance of complainant/respondent would be a step towards securing the ends of justice and to prevent abuse of process of the Court, especially, when the petitioner is facing pangs and suffered agony of protracted trial and thereafter appeal/revision for the last more than four years and has paid the entire compensation amount - revision petition disposed off.

Issues:
1. Conviction under Section 138 of the Negotiable Instruments Act.
2. Appeal against the conviction and sentence.
3. Settlement between the parties after conviction.
4. Power of the court to accept settlement and quash proceedings.
5. Application of legal principles from relevant Supreme Court judgments.
6. Discharge of the accused upon payment of compensation.
7. Exercise of inherent powers under Section 397, 401, 482 of Cr.P.C. and Section 147 of the Act.

Analysis:
1. The case involved a complaint under Section 138 of the Negotiable Instruments Act, where the petitioner was convicted by the Judicial Magistrate and sentenced to imprisonment and compensation. The petitioner appealed the judgment, which was dismissed, leading to the revision petition.

2. The petitioner sought to quash the proceedings after settling the matter with the respondent by paying the entire cheque and loan amounts. The question arose whether a compromise at this stage could be permitted, considering the charges under Section 138 of the Act.

3. The court discussed its powers under Section 397, 401, and 482 of the Cr.P.C., along with Section 147 of the Act, to accept settlements and prevent abuse of the legal process. It referred to the Supreme Court judgments outlining principles for exercising such powers.

4. Citing the Supreme Court's decisions, the court emphasized that the power to quash criminal proceedings under Section 482 is not the same as compounding an offense. It highlighted factors to consider, such as the nature of the offense and public interest in serious crimes like murder or rape.

5. Referring to recent Supreme Court judgments, the court noted that the accused could be discharged upon payment of compensation, even without the complainant's consent, to secure the ends of justice. It highlighted the compensatory nature of Section 138 offenses.

6. Considering the settled law and the petitioner's payment of the compensation amount, the court found it appropriate to exercise its powers under the relevant legal provisions and quash the complaint. The court modified the sentence and ordered the release of deposited amounts to the respondent.

7. The judgment exemplified the court's holistic approach, considering the legal principles and specific circumstances of the case to secure justice and prevent abuse of the legal process, ultimately disposing of the revision petition effectively.

← Previous Next →