2022 (2) TMI 724 - HC - Indian Laws

Dishonor of Cheque - offence punishable u/s 138 of Negotiable Instruments Act - dispute is amicably settled between the parties - HELD THAT - It has emerged that the applicant has been convicted by the concerned Court for the offence punishable under Section 138 of the N.I. Act. However, now, the parties have amicably settled the dispute and, therefore, the respondent No. 2 has filed an affidavit stating that if the order of conviction passed against the applicant is quashed and set aside, the respondent No. 2 has no objection. When the parties have settled the dispute amicably, compounding of the offence is required to be permitted. Accordingly, the application is allowed.

Summary

Issues:
1. Application filed under Section 482 of the Code of Criminal Procedure, 1973 for quashing a judgment and order of conviction under Section 138 of the Negotiable Instruments Act, 1881.
2. Compounding of the offence under Section 138 of the N.I. Act after amicable settlement between parties.
3. Deposit requirement as per guidelines issued by the Hon'ble Supreme Court.

Analysis:
1. The application was filed under Section 482 of the Code of Criminal Procedure, 1973 seeking to quash a judgment and order of conviction under Section 138 of the Negotiable Instruments Act, 1881. The concerned trial Court had convicted the applicant for the offence, but the parties had amicably settled the dispute. The complainant filed an affidavit stating no objection to quashing the conviction.

2. The applicant relied on previous decisions and guidelines to support the compounding of the offence even after conviction under Section 138 of the N.I. Act. The court noted the settlement between parties and allowed the application, quashing the judgment and order of conviction. The applicant was directed to deposit 15% of the cheque amount with the Gujarat State Legal Services Authority, following the guidelines set by the Hon'ble Supreme Court.

3. Referring to the guidelines issued by the Hon'ble Supreme Court, the court directed the applicant to deposit ?75,000 (15% of the cheque amount) with the Gujarat State Legal Services Authority within four weeks. Upon compliance, the order quashing the conviction would be given effect. Direct service was permitted for the same.

This detailed analysis covers the issues raised in the judgment, outlining the legal proceedings, settlements between parties, and the requirements set by the court based on relevant legal provisions and guidelines.