2021 (8) TMI 720 - HC - Indian Laws

Dishonor of Cheque - non-bailable warrants along with process under Sections 82 and 83 Cr.P.C. issued against applicants - whether proceedings under Section 138 of N.I. Act are compoundable at any stage? - applicant contends that proceedings under Section 138 of N.I. Act are compoundable at any stage and applicants are free to settle the dispute - HELD THAT - Upon perusal of record, this Court does not find any good ground to entertain this application. The application lacks merit and is liable to be dismissed.

Summary

Issues:
Challenge to order issuing non-bailable warrants and process under Sections 82 and 83 Cr.P.C. against the applicants.

Analysis:
The judgment pertains to an application under Section 482 Cr.P.C. challenging an order passed by the Special Chief Judicial Magistrate, Kanpur Nagar in a complaint case under Section 138 N.I. Act and Sections 420, 120B I.P.C. The applicants had previously filed two similar applications which were dismissed by the High Court. The court noted that the applicants failed to appear before the court despite non-bailable warrants issued against them. The court found no illegality in the impugned proceedings, including the summoning order against the accused-applicants. The court highlighted that the proceedings under Section 138 of N.I. Act are compoundable at any stage, allowing the applicants to settle the dispute by depositing the amount payable under the disputed cheque before the court.

The preliminary objection raised by the learned A.G.A. and counsel for the complainant/opposite party-2 regarding the maintainability of the present application was considered by the court. It was pointed out that the applicants had previously approached the court with similar applications which were dismissed. The court emphasized that since there was no change in circumstances, the present application was also deemed not maintainable. The court highlighted the repeated failure of the applicants to appear before the court despite non-bailable warrants issued against them, leading to the issuance of process under Sections 82 and 83 Cr.P.C. The court found no infirmity or illegality in the order passed by the court below, resulting in the dismissal of the present application.

In response to the submissions made by the learned counsel for the applicants regarding their willingness to settle the dispute, the court considered the legal aspect of compounding proceedings under Section 138 of N.I. Act at any stage. The court acknowledged the option for the applicants to settle the dispute by depositing the amount payable under the disputed cheque before the court at any stage. However, after hearing the arguments from both parties and examining the facts on record, the court concluded that there were no valid grounds to entertain the present application. Consequently, the court found the application lacking in merit and dismissed it accordingly.