2021 (1) TMI 133 - HC - Indian Laws

Dishonor of Cheque - initiation of proceedings under section 138 of Negotiable Instruments Act - prayer for compounding of offence - parties have amicably settled the matter inter se them and entire compensation amount paid - HELD THAT - Since both the parties have resolved to settle their dispute amicably interse them and entire compensation amount awarded by the learned trial Court stands paid to the petitioner, this Court sees no impediment in accepting the prayer for compounding the offence while exercising power under section 147 of the Negotiable Instruments Act - Hon'ble Apex Court in DAMODAR S. PRABHU VERSUS SAYED BABALAL H. 2010 (5) TMI 380 - SUPREME COURT , has categorically held that Court, while exercising power under Section 147 of the Act, can proceed to compound the offence even after recording of conviction by the courts below. The instant matter is ordered to be compounded and judgments passed by learned Courts below are quashed and set-aside. The petitioner-accused is acquitted of the charge framed against her under Section 138 of the Act. The bail bonds of the accused are ordered to be discharged. Petition disposed off.

Summary

Issues involved:
Challenge to judgment of conviction under Section 138 of the Negotiable Instruments Act.

Analysis:
The case involved a Criminal Revision Petition challenging a judgment of conviction under Section 138 of the Negotiable Instruments Act. The petitioner-accused was convicted and sentenced to six months of simple imprisonment and a compensation of ?4,00,000 to the complainant by the trial court. The appeal against this judgment was dismissed by the Additional Sessions Judge, leading to the petitioner approaching the High Court seeking acquittal.

The complainant alleged that the accused issued a cheque for ?3,00,000 which was dishonored due to insufficient funds. The trial court found the accused guilty based on the evidence presented and passed the conviction and sentence. However, during the proceedings in the High Court, a compromise deed was presented between the parties, indicating an amicable settlement. The parties agreed that the entire cheque amount had been paid to the complainant, leading to a request for acquittal of the accused.

Both parties acknowledged the compromise and expressed no objection to quashing the conviction and sentence. The High Court, in line with the law laid down by the Apex Court, accepted the compromise and ordered the compounding of the offense under Section 138 of the Act. The judgments of the lower courts were quashed, and the petitioner-accused was acquitted of the charge. The bail bonds of the accused were ordered to be discharged, and the trial court was directed to release the deposited amount to the complainant upon application.

In conclusion, the High Court allowed the petition, disposed of all pending applications, and ordered the compounding of the offense, resulting in the acquittal of the accused and discharge of bail bonds.