2022 (4) TMI 1246 - HC - Indian Laws

Dishonor of Cheque - insufficiency of funds - amicable settlement between parties, entering into compromise - HELD THAT - In compliance of order of this Court though the applicant/revisionist did appear in person as he was in jail, however, his counsel Shri Arpan Shrivastava appeared before the Registrar Judicial-II for verification of their compromise. The complainant who has been identified by his counsel Shri Kapil Patwardhan appeared in person before the Registrar (Judicial-II). The Registrar (Judicial-II) submitted his report dt.10.3.2022 stating that complainant has voluntarily entered into compromise without any force, compulsion, duress, undue influence or threat. The complainant also stated that he has no objection if the applicant/revisionist is acquitted in the light of compromise in question. However, the Registrar (Judicial-II) has pointed out that in view of decisions in the case of Damodardas S. Prabhu Vs. Sayed Babalal H, 2010 (5) TMI 380 - SUPREME COURT and M.P. State Legal Services Authority Vs. Prateek Jain and others, 2014 (10) TMI 528 - SUPREME COURT the applicant/revisionist is required to deposit 15% of the cheque amount as costs with the State Legal Servics Authority - it is directed subject to applicant's depositing compounding fee of 15% of cheque amount (₹ 1,50,000/-) i.e. ₹ 22,500/- before the State Legal Services Authority, Jabalpur within 15 days from the date of receipt of copy of this order, the prayer of parties for compounding be treated to have been allowed, impugned judgment dated 30.07.2021 be treated to be set aside and the applicant be treated to be acquitted from the charge under section 138 of the Negotiable Instruments Act. Revision allowed.

Summary

Issues:
Challenge to judgment of conviction and sentence under section 138 of the Negotiable Instruments Act.

Analysis:
The applicant challenged the judgment of conviction and sentence passed by the 4th Additional Sessions Judge, Bhopal, affirming the conviction under section 138 of the Negotiable Instruments Act. The applicant was sentenced to undergo R.I. for 6 months and pay compensation of ?1,90,500 under section 357(3) of the Cr.P.C. The facts revealed that the applicant's wife requested the complainant for a loan, which was granted based on their familiarity. Subsequently, a cheque was issued by the applicant to the complainant, which was dishonored due to insufficient funds, leading to a complaint under section 138 of the NI Act.

The Trial Court found the applicant guilty of the offense and imposed the aforementioned sentence and compensation. Despite the appeal filed by the applicant before the Fourth Additional Sessions Judge, Bhopal, the lower appellate Court upheld the trial Court's decision, resulting in the applicant's dissatisfaction with the judgment.

During the pendency of the criminal revision, a joint application was filed under section 147 of the NI Act and section 482 of the Cr.P.C., indicating an amicable settlement. The applicant had made partial payments, and a compromise was reached between the parties. The Registrar (Judicial-II) verified the compromise and recommended a deposit of 15% of the cheque amount as costs with the State Legal Services Authority.

Upon the applicant's counsel's oral prayer, the Court allowed the compounding of the offense subject to the applicant depositing the compounding fee of 15% of the cheque amount within a specified timeframe. Consequently, the impugned judgment was set aside, and the applicant was acquitted from the charge under section 138 of the Negotiable Instruments Act. The revision was allowed based on this condition.