2022 (4) TMI 299 - HC - Indian Laws

Dishonor of Cheque - section 138 of NI Act - matter is amicably settled between the parties - HELD THAT - Matter stands amicably settled between parties. In this regard statements of learned counsel for the petitioner as well as learned counsel for respondent No. 1 have been recorded. Both of them have stated that they are duly authorized to make statement on behalf of their respective clients and to communicate amicable settlement to the Court. It has been communicated by them that as complainant- respondent has agreed to withdraw the complaint for compounding the case against receipt of entire compensation amount, petitioner-accused does not intend to contest the petition on merit and thus prayer has been made to decide the case in terms of compromise. The respondent/complainant is permitted to withdraw the complaint and matter is compounded and complaint arising out of dishonor of cheque, under Section 138 of the Negotiable Instruments Act, is treated to be withdrawn and judgments of conviction and sentence passed by the Courts below are quashed and set aside. Petitioner-accused is acquitted of the accusation framed against him. The petitioner/accused is directed to deposit ₹ 2,000/- as compounding fee with the H.P. State Legal Services Authority, Shimla within six weeks from today - Trial Court is directed to release ₹ 2,50,000/- deposited by the petitioner-accused, along with interest, if any, accrued thereon, in favour of respondent-complainant by remitting the same in bank account of respondent-complainant Tarsem Singh - petition disposed off.

Summary

Issues:
1. Appeal against conviction under Section 138 of Negotiable Instruments Act.
2. Settlement between parties for withdrawal of complaint.
3. Exemption from compounding fee for the petitioner.
4. Direction to deposit compounding fee.
5. Release of deposited amount to the complainant.
6. Disposition of the petition and related applications.

Analysis:
1. The judgment concerns a revision petition challenging the conviction of the petitioner-accused under Section 138 of the Negotiable Instruments Act. The Sessions Judge affirmed the lower court's decision of sentencing the accused to six months of simple imprisonment and awarding compensation of ?5,00,000 to the complainant. However, the matter was settled amicably between the parties, leading to the withdrawal of the complaint by the complainant.

2. Both counsels confirmed the settlement, with the complainant agreeing to withdraw the complaint upon receiving the entire compensation amount. As a result, the complaint related to the dishonor of the cheque was treated as withdrawn, and the convictions and sentences imposed by the lower courts were quashed, leading to the acquittal of the petitioner-accused from the accusations.

3. The petitioner, a widow with three children, sought exemption from the compounding fee. Citing relevant legal precedents, the counsel requested leniency in waiving the fee. The court considered the circumstances and directed the petitioner to deposit ?2,000 as the compounding fee with the State Legal Services Authority within six weeks, deviating from the usual 15% of the cheque amount requirement.

4. Following the directive, the petitioner was instructed to provide a copy of the receipt of the compounding fee deposit to the court. Failure to comply within eight weeks would result in the automatic revival of the convictions and sentences. Additionally, the Trial Court was ordered to release ?2,50,000 along with any accrued interest to the complainant from the amount deposited by the petitioner.

5. The judgment concluded by disposing of the petition and any pending applications in accordance with the terms outlined. The court also directed the release of the specified amount to the complainant without notice to the petitioner. Finally, a copy of the judgment was to be sent to the State Legal Services Authority for necessary action, allowing parties to use downloaded copies for official purposes without the need for certified copies.