2021 (12) TMI 280 - HC - Indian Laws

Dishonor of Cheque - guilty of having committed offence punishable under Section 138 of the Negotiable Instruments Act - HELD THAT - Having taken note of the fact that entire amount of compensation stands received by the respondent-complainant and respondent has no objection in compounding the offence, this Court sees no impediment in accepting the prayer made on behalf of the petitioner for compounding of offence while exercising power under Section 147 of the Act as well as in terms of guidelines issued by the Hon'ble Apex Court in DAMODAR S. PRABHU VERSUS SAYED BABALAL H. 2010 (5) TMI 380 - SUPREME COURT , wherein it has been 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 petitioner-accused is acquitted of the charge framed against him under Section 138 of the Act - present matter is ordered to be compounded and impugned judgments of conviction and sentence passed by the courts below are quashed and set-aside - petition disposed off.

Summary

Issues:
Challenge to judgment affirming conviction under Section 138 of the Negotiable Instruments Act, compounding of offence under Section 147 of the Act, settlement between parties.

Analysis:
The judgment under review pertains to a criminal revision petition challenging a judgment affirming the conviction of the petitioner-accused under Section 138 of the Negotiable Instruments Act. The petitioner was found guilty by the trial court for dishonoring cheques issued to the complainant. The trial court's decision was upheld by the appellate court, leading to the petitioner seeking acquittal through the instant proceedings.

The petitioner, through his counsel, argued for compounding the offence under Section 147 of the Act, citing that the entire compensation amount had been paid to the complainant. The respondent-complainant, represented by senior counsel, confirmed receiving the compensation and expressed no objection to compounding the offence. The court considered the settlement between the parties and the fact that the complainant had received the full compensation amount.

Relying on the powers granted under Section 147 of the Act and following guidelines from a Supreme Court case, the court accepted the prayer for compounding the offence. Consequently, the judgments of conviction and sentence by the lower courts were quashed, and the petitioner-accused was acquitted of the charge under Section 138 of the Act. Any interim orders were vacated, and bail bonds, if any, were discharged.

In light of the unnecessary legal proceedings initiated by the complainant for the recovery of his own money, the court directed the accused to pay a sum as litigation cost to the respondent within a specified timeframe. Failure to comply would result in penal consequences and potential contempt proceedings. The court disposed of the petition along with any pending applications, bringing the matter to a close.