2021 (10) TMI 756 - HC - Indian Laws

Dishonor of Cheque - amicable settlement arrived or not - seeking exemption of compounding fee on the ground that due to poor financial condition, petitioner could not pay the amount well in time - HELD THAT - After depositing compounding fee/cost, petitioner shall place a copy of receipt of deposit of compounding fee on record of this petition. In case of default in depositing compounding fee/cost with the H.P. State Legal Service Authority, Shimla within eight weeks from today, the judgments of conviction and sentence shall automatically revive. As an amount of ₹ 70,000/- has been deposited by the petitioner in the Registry of this High Court, therefore, Registry is directed to release the aforesaid amount in favour of complainant Subhadra Devi, along with interest, if any accrued thereon, without issuing notice to the accused-petitioner (Balwant), by remitting the same in her bank account, details whereof shall be furnished by her either in person or through counsel at the time of production of copy of this order. Petition disposed off.

Summary

Issues:
1. Appeal against conviction under Section 138 of Negotiable Instruments Act.
2. Compromise settlement between parties.
3. Exemption from compounding fee.
4. Direction to deposit compounding fee.
5. Release of deposited amount to complainant.
6. Compliance and consequences of non-payment.

Analysis:

1. The judgment pertains to a revision petition challenging the conviction under Section 138 of the Negotiable Instruments Act. The petitioner sought relief based on a compromise settlement between the parties. The Additional Sessions Judge affirmed the lower court's decision, sentencing the accused to six months' simple imprisonment and a compensation amount.

2. The counsel for the petitioner informed the court about the amicable settlement, with a partial amount already deposited in the court registry. Both parties agreed to the compromise, leading to the withdrawal of the complaint. Consequently, the complaint arising from the dishonor of the cheque was treated as withdrawn, and the convictions were quashed, resulting in the petitioner's acquittal.

3. The petitioner requested an exemption from the compounding fee due to financial constraints. Citing legal precedents, the counsel argued for leniency in fee payment. The court considered the circumstances and directed the petitioner to deposit a reduced amount as a compounding fee within a specified timeline.

4. In line with the court's direction, the petitioner was instructed to deposit the compounding fee with the State Legal Services Authority within eight weeks. Failure to comply would result in the automatic revival of the convictions and sentence.

5. As a portion of the amount was already deposited in the court registry, the court ordered the release of that sum to the complainant, along with any accrued interest. The release was to be facilitated without notice to the accused, and the complainant was directed to provide bank account details for the transaction.

6. The judgment concluded by disposing of the petition and any pending applications in accordance with the terms outlined. Additionally, copies of the judgment were to be sent to the State Legal Services Authority for necessary action by the parties. The parties were permitted to use downloaded copies from the High Court website for various purposes, with verification available on the website for order confirmation.