2021 (11) TMI 724 - HC - Indian Laws

Dishonor of Cheque - insufficiency of funds - acquittal of the accused - compounding of offences - HELD THAT - Having taken note of the fact that entire amount of compensation stands deposited with the trial Court and accused has no objection in releasing the same in favour of the complainant, this Court finds no impediment in accepting the prayer made in the application while exercising power under section 147 of the Act as well as in terms of the law laid down by the Hon'ble Apex Court in DAMODAR S. PRABHU VERSUS SAYED BABALAL H. 2010 (5) TMI 380 - SUPREME COURT , whereby it has been categorically held that Court exercising power under Section 147 of the Act can proceed to compound the offences even in those cases where accused stands convicted. The instant matter is ordered to be compounded and judgment dated 5.4.2021 passed by learned Sessions Judge, Shimla, in Criminal Appeal No. 51-S/10 of 2018 and the judgment of conviction and order of sentence dated 24.11.2018, passed by learned Judicial Magistrate, 1st Class, Court No. 5, Shimla, District Shimla, H.P., in case No. 183-3 of 2014, are quashed and set-aside. The petitioner-accused is acquitted of the charge framed against him under Section 138 of the Act. The bail bonds of the accused are ordered to be discharged. Petition disposed off.

Summary

Issues:
1. Challenge to judgment affirming conviction under Section 138 of the Negotiable Instruments Act.
2. Compounding the offense under Section 147 of the Act.

Issue 1: Challenge to Judgment Affirming Conviction under Section 138 of the Negotiable Instruments Act

The case involved a complaint under Section 138 of the Negotiable Instruments Act where the accused agreed to purchase a vehicle from the complainant but issued a cheque that was dishonored due to insufficient funds. The complainant initiated legal proceedings, leading to the accused's conviction by the trial court. The accused appealed to the Sessions Judge, but the appeal was dismissed, upholding the conviction. Subsequently, the accused filed a Criminal Revision Petition challenging the judgment. The High Court suspended the sentence upon the accused depositing the compensation amount. The petitioner's counsel informed the court that the full compensation amount had been deposited, requesting the court to compound the offense and acquit the accused. The respondent's counsel confirmed the complainant's willingness to compound the matter upon receiving the compensation. Citing legal precedent, the court exercised its power under Section 147 of the Act and compounded the offense, quashing the judgments of the lower courts, and acquitting the accused.

Issue 2: Compounding the Offense under Section 147 of the Act

During the proceedings, the petitioner's counsel stated that the entire compensation amount had been deposited with the trial court and requested its release to the complainant. Both counsels agreed that the accused had fulfilled the compensation requirement, and the complainant was willing to compound the matter upon receiving the full amount. The court, following the law laid down by the Supreme Court, accepted the application to compound the offense under Section 147 of the Act. Consequently, the judgments of the lower courts were quashed, the accused was acquitted of the charge under Section 138 of the Act, and the bail bonds were discharged. The trial court was directed to release the deposited amount to the complainant promptly, with details to be provided by the respondent's counsel within ten days. The petition was disposed of, and any interim orders were vacated.

This detailed analysis of the judgment highlights the legal proceedings, the grounds for conviction, the appeal process, and the final decision to compound the offense and acquit the accused based on the fulfillment of the compensation requirement.