2022 (4) TMI 420 - HC - Indian Laws

Dishonor of Cheque - insufficiency of funds - matter is already settled between parties - acquittal of accused - compounding of offences - Section 147 of NI Act - HELD THAT - The admitted position is that the matter stands settled and the settlement agreement between the parties dated 27.09.2019 is already on record. This Court in VATSA ELECTRONICS VERSUS PALA RAM ANR. 2022 (4) TMI 353 - PUNJAB AND HARYANA HIGH COURT has also held that once a settlement is being effected, then in terms of Section 147 of the Negotiable Instruments Act and Section 320 Cr.P.C., the accused ought to be acquitted as the offence stands compounded. The parties have voluntarily settled the disputes between themselves, it is a fit case for allowing them to compound the offence - Petition allowed.

Summary

Issues:
1. Appeal against conviction and sentence dismissal.
2. Settlement agreement for compounding the offense under Section 138 of the Negotiable Instruments Act, 1881.

Analysis:
1. The petitioner filed a revision petition against the order of the Sessions Judge, Kaithal, dismissing the appeal against the judgment of conviction and sentence passed by the Judicial Magistrate, 1st Class, Kaithal. The case involved the issuance of a cheque by the accused to the complainant, which was dishonored due to insufficient funds. The accused failed to make the payment despite a legal notice, leading to a complaint under Section 138 of the Negotiable Instruments Act, 1881. The accused was convicted and sentenced to three months of simple imprisonment and a compensation of ?2,00,000, with an additional five days of imprisonment in default of payment.

2. During the pendency of the criminal revision petition, the matter was referred to the Mediation and Conciliation Centre, resulting in a settlement between the parties on 27.09.2019. The complainant-respondent accepted the compromise, stating no objection to the petitioner's acquittal. Citing precedents like 'Vatsa Electronics Vs. Pala Ram & Anr.' and 'Ramesh Chander Vs. State of Haryana,' the court highlighted the compounding provisions under Section 147 of the Negotiable Instruments Act and Section 320 Cr.P.C. The court emphasized that once a settlement is reached, the offense stands compounded, leading to the acquittal of the accused. As the parties had voluntarily settled their dispute, the court allowed the compounding of the offense under Section 138, setting aside the previous orders of conviction and sentence.

In conclusion, the High Court allowed the revision petition, acquitting the petitioner of the charge under Section 138 of the Negotiable Instruments Act, based on the settlement agreement between the parties, in accordance with the provisions of the Act and relevant legal precedents.