2020 (3) TMI 991 - HC - Indian Laws

Dishonor of cheque - insufficiency of funds - Section 138 of the Negotiable Instruments Act, 1881 - Compounding of offences - HELD THAT - Under Section 320 Cr.P.C., the High Court may allow compounding of offences at the stage of revision also. Therefore, allowing the compounding of offences in view of the compromise between the parties, the revision petition is accepted and the judgments passed by the Courts below are set aside, resultantly, the revisionist accused is acquitted of the notice of accusation served upon him for offence under Section 138 of the Negotiable Instruments Act, 1881. It is clarified that the compromise arrived at in the revision petition shall not have any effect upon RSA-3195-2015, said to have been filed by the complainant against the present revisionist, which is pending before this court. The revisionist is directed to deposit 15% of the cheque amount with the High Court Legal Service Committee, within two weeks from today.

Summary

Issues involved: Complaint under Section 138 of the Negotiable Instruments Act, 1881; Conviction under Section 138; Appeal before the Court of Sessions; Revision petition before the High Court; Compounding of offenses.

Complaint under Section 138 of the Negotiable Instruments Act, 1881:
The complainant filed a complaint against the accused for issuing a dishonored cheque. The accused had offered his plot to adjust the cheque amount, which the complainant accepted. Later, another cheque was dishonored, leading to legal proceedings. The accused was summoned, pleaded not guilty, and was convicted under Section 138. He was sentenced to imprisonment and a fine.

Conviction under Section 138:
After the accused's conviction, he appealed before the Court of Sessions, which dismissed the appeal. Subsequently, the accused filed a revision petition before the High Court, challenging the lower courts' judgments. However, during the pendency of the revision petition, the parties reached a compromise, with the accused paying the complainant the due amount through demand drafts.

Appeal before the Court of Sessions and Revision petition before the High Court:
The accused's appeal before the Court of Sessions was unsuccessful, leading him to file a revision petition before the High Court. The High Court accepted the revision petition due to the compromise between the parties. The judgments of the lower courts were set aside, and the accused was acquitted of the offense under Section 138 of the Negotiable Instruments Act, 1881. The compromise did not affect the civil litigation pending between the parties.

Compounding of offenses:
The parties reached a compromise during the revision petition, with the accused paying the due amount. Both parties consented to compound the offenses. The High Court, under Section 320 Cr.P.C., allowed the compounding of offenses at the revision stage. The revisionist accused was acquitted, and it was clarified that the compromise would not impact the pending civil litigation. The accused was directed to deposit 15% of the cheque amount with the High Court Legal Service Committee within two weeks.