2019 (12) TMI 60 - HC - Indian Laws

Dishonor of Cheque - offence punishable under Section 138 of the Negotiable Instruments Act - accused stated that part amount was deposited before learned trial Court, whereas remaining amount as awarded by learned trial Court stands paid - compounding of matter - HELD THAT - When entire compensation amount has bee agreed to be paid to the complainant, this Court sees no impediment in accepting the prayer made in the instant petition especially in view of power vested in this Court under S.147 of the Act and guidelines laid down by Hon'ble Apex Court in DAMODAR S. PRABHU VERSUS SAYED BABALAL H. 2010 (5) TMI 380 - SUPREME COURT - Needless to say, Hon'ble Apex Court in judgment (supra) has categorically held that power under S.147 of the Act ibid can be exercised even in those cases, where accused stands convicted. Impugned judgments/order of conviction and sentence passed by both the learned Courts below are quashed and set aside. Petitioner is acquitted of the offence punishable under S.138 of the Act ibid - Petition allowed.

Summary

Issues:
Challenge to judgment affirming conviction and sentence under S.138 of the Negotiable Instruments Act.

Analysis:
The judgment in question involved a criminal revision petition challenging a judgment affirming conviction and sentence under S.138 of the Negotiable Instruments Act. The petitioner, the accused, was found guilty of issuing a dishonored cheque and was sentenced to undergo rigorous imprisonment for six months and pay compensation. The complainant alleged that the accused had purchased goods on credit and issued a cheque that bounced due to insufficient funds. Despite legal notice, the accused failed to pay, leading to the complaint under S.138 of the Act.

The trial court found the accused guilty based on the evidence presented and upheld the conviction and sentence on appeal. However, before the petition could be decided on its merits, the parties informed the court of an amicable settlement. The accused had already deposited a portion of the compensation amount, and the remaining sum was paid. The complainant's representative confirmed the settlement on oath, stating that the accused had agreed to pay the full compensation amount.

Considering the settlement and the power vested under S.147 of the Act, the court accepted the prayer for compounding the matter. Citing guidelines from a previous Supreme Court judgment, the court quashed the conviction and sentence, acquitting the petitioner of the offense under S.138 of the Act. The court directed the trial court to release the deposited amount with interest to the complainant upon application.

In conclusion, the petition was allowed, the impugned judgments were set aside, and the petitioner was acquitted. The bail bonds were discharged, and the trial court was instructed to release the deposited amount to the complainant with interest. The matter was disposed of accordingly, along with any pending applications.