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2019 (12) TMI 1096 - HC - Indian LawsDishonor of Cheque - amicable settlement - Section 138 of N.I. Act - compounding of offences - HELD THAT - In view of the settlement arrived at between the parties, the offence under Section 138 of the NI Act against the petitioner is permitted to be compounded, subject to payment of costs of ₹ 5,000/- to be deposited by the petitioner with the Delhi High Court Legal Services Committee within a period of eight weeks from the date of this order. The petitioner stands acquitted. Petition disposed off.
Issues:
1. Revision petition filed seeking setting aside of conviction under Section 138 N.I. Act. 2. Dismissal of appeal by Sessions Court. 3. Settlement reached between parties through Delhi High Court Mediation and Conciliation Centre. 4. Petitioner's request for reduction in costs based on a Supreme Court decision. Issue 1: Revision petition against conviction under Section 138 N.I. Act The petitioner filed a revision petition under Section 397/401 read with Section 482 Cr.P.C. challenging the judgment of conviction and sentence passed by the Metropolitan Magistrate. The petitioner was convicted for an offence under Section 138 N.I. Act and sentenced to six months' simple imprisonment along with a compensation amount and litigation expenses. The petitioner appealed to the Sessions Court, which dismissed the appeal. The impugned judgment detailed the facts of the case, including an agreement between the accused and the complainant regarding a property transaction, failure to hand over possession, and a dishonored cheque leading to the complaint. Issue 2: Dismissal of appeal by Sessions Court The petitioner's appeal before the Sessions Court, presided over by the Special Judge, was dismissed. The Special Judge upheld the lower court's decision on conviction and sentence under Section 138 N.I. Act. The dismissal of the appeal further escalated the legal battle for the petitioner, prompting the filing of a revision petition before the High Court. Issue 3: Settlement through Delhi High Court Mediation and Conciliation Centre During the pendency of the revision petition, the parties were referred to the Delhi High Court Mediation and Conciliation Centre to explore an amicable settlement. Subsequently, the parties reached a settlement agreement before the Mediation Centre, wherein the entire settled amount was received by the complainant. This settlement led to the compounding of the offence under Section 138 of the NI Act against the petitioner, resulting in the petitioner's acquittal subject to the payment of costs to be deposited with the Delhi High Court Legal Services Committee. Issue 4: Petitioner's request for reduction in costs The petitioner, through counsel, argued for a reduction in costs citing a Supreme Court decision. The counsel relied on the case of Damodar S. Prabhu v. Sayed Babalal H. and requested a 15% reduction in costs. Ultimately, in light of the settlement between the parties, the High Court permitted the compounding of the offence under Section 138 of the NI Act against the petitioner upon the payment of costs to the Delhi High Court Legal Services Committee within a specified timeframe, leading to the petitioner's acquittal. In conclusion, the judgment highlighted the legal journey of the petitioner from the lower court conviction to the dismissal of the appeal before the Sessions Court, ultimately culminating in a settlement through mediation and the subsequent acquittal of the petitioner upon the payment of costs as directed by the High Court.
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