2022 (4) TMI 353 - HC - Indian Laws

Dishonor of Cheque - insufficiency of funds - discharge of legally enforceable debt or not - compromise has been entered into between parties - compoundable offences or not - HELD THAT - The admitted position is that the matter stands settled pursuant to which an application under Section 147 of the Negotiable Instruments Act read with Section 320 Cr.P.C. has been filed. Since, the parties have voluntarily settled the disputes between themselves, it is a fit case for allowing them to compound the offence - Petition allowed - decided in favor of petitioner.

Summary

Issues:
1. Appeal against judgment of conviction and order of sentence dismissal.
2. Complaint under Section 138 of Negotiable Instruments Act, 1881.
3. Appeal dismissal by Sessions Judge.
4. Compromise between parties.
5. Application under Section 147 of Negotiable Instruments Act.
6. Acceptance of compromise by complainant.
7. Legal position on compounding of offense under Section 138.

Analysis:
1. The petitioner filed a revision petition against the order dated 01.06.2019 by the Sessions Judge, Panipat, dismissing the appeal against the judgment of conviction and order of sentence dated 16.12.2015 by the Sub Divisional Judicial Magistrate, Samalkha.

2. The complaint under Section 138 of the Negotiable Instruments Act, 1881, was filed after the accused-petitioner issued a cheque that was dishonored multiple times. The accused failed to pay the borrowed amount, leading to legal proceedings resulting in conviction and sentencing to undergo imprisonment and pay compensation.

3. The petitioner's appeal before the Sessions Judge, Panipat, was dismissed on 01.06.2019, prompting the filing of the present revision petition.

4. During the pendency of the revision petition, a compromise was reached between the parties, with the complainant expressing satisfaction after receiving the consideration amount and having no objection to the petitioner's acquittal. An application under Section 147 of the Negotiable Instruments Act was filed seeking compounding of the offense due to the mutual compromise.

5. The complainant's counsel accepted the compromise, stating no objection to the petitioner's acquittal.

6. The court referred to the legal position on compounding offenses under Section 138, highlighting the compoundability of the offense and the effect of compounding on the accused.

7. Considering the voluntary settlement between the parties, the court allowed the compounding of the offense, setting aside the previous orders and acquitting the petitioner of the charge under Section 138 of the Negotiable Instruments Act.