2021 (3) TMI 598 - HC - Indian Laws

Dishonor of Cheque - non-repayment of friendly loan - section 138 of NI Act - HELD THAT - This Court finds that during pendency of this criminal revision, the petitioner deposited an amount of ₹ 1,50,000/- in the bank account of this Court, the petitioner has shown his intention to settle the case out of court and the learned counsel for the opposite party no.2 has also expressed that if the amount of ₹ 1,50,000/- is remitted to the complainant's account, he has no objection if the conviction as well as the sentence of the petitioner is set aside. It is not in dispute that the present case arises out of friendly loan between the parties and the matter is under Section 138 of Negotiable Instrument Act. This case is disposed by way of compromise between the petitioner and opposite party no. 2. Accordingly, the conviction as well as the sentence of the petitioner arising out of Complain Case are hereby set aside on account of settlement out of court between the parties - Revision application disposed off.

Summary

Issues:
Criminal revision against conviction and sentence under Section 138 of Negotiable Instrument Act, 1881. Compromise settlement between the parties.

Analysis:
The criminal revision application challenged the order confirming the conviction and sentence of the petitioner under Section 138 of the Negotiable Instrument Act. The petitioner was directed to undergo imprisonment for six months and pay a compensation amount of ?1.50 lakhs to the complainant. The petitioner had deposited the compensation amount in the court's account, showing an intention to settle the matter out of court. The opposite party no.2 expressed willingness to accept the amount and set aside the conviction and sentence as part of a compromise settlement, emphasizing the friendly nature of the loan transaction.

The court considered the facts and circumstances, noting that the case arose from a friendly loan between the parties. After hearing both sides, the court found that the petitioner had issued a cheque that was dishonored, leading to legal proceedings. The petitioner's act of depositing the compensation amount and the opposite party's willingness to accept it for settlement were crucial in the court's decision. The court acknowledged the readiness of both parties to resolve the matter amicably, emphasizing the importance of restoring cordial relations between them.

In light of the settlement between the parties, the court set aside the conviction and sentence imposed on the petitioner. The deposited amount of ?1.50 lakhs was directed to be remitted to the opposite party's account as per the details provided. The court disposed of the revision application, discharged the petitioner's bailors, closed pending applications, and ordered the lower court records to be sent back. The order was to be communicated to the lower court via FAX, concluding the legal proceedings in the matter.