2022 (6) TMI 197 - HC - Indian Laws

Dishonor of Cheque - levy of compounding fees of lesser amount - Section 138 of Negotiable Instrument Act - HELD THAT - In present case, the cheque amount was of Rs.4,50,000/-but amount of compensation is Rs.5,00,000/- and the matter has been compounded. As the petitioner/accused has paid Rs.4,45,000/- to the complainant and Rs.55,000/- is yet to be paid, for which petitioner has issued Cheque No. 000181 dated 30.4.2022 for Rs.15,000/-, Cheque No. 000177 dated 30.5.2022 for Rs.30,000/- and Cheque No. 000178 dated 30.6.2022 for Rs.10,000/- respectively to be drawn on Bandhan Bank Shimla in favour of complainant and in case of default, the judgment of conviction passed against him by trial Court impugned in this petition, shall revive and has prayed for imposing lesser compounding fee instead of 15% of the cheque amount, it is opined that it is an appropriate case to impose lesser compounding fee. Therefore, petitioner is directed to deposit compounding fee of Rs.5,000/- instead of 15% of cheque amount, with the H.P. State Legal Services Authority, Shimla within a period of four weeks from today. After depositing compounding fee/cost, petitioner shall place copy of receipt of deposit on record of this petition. In case of default in depositing compounding fee/cost with H.P. State Legal Services Authority, Shimla within stipulated period, the judgments of conviction and sentence shall automatically revive - petition disposed off.

Summary

Issues:
Quashing of complaint under Section 138 of Negotiable Instruments Act and setting aside the conviction/sentence judgment.

Analysis:
The petition was filed to quash a complaint under Section 138 of the Negotiable Instruments Act and set aside the conviction/sentence judgment passed by the learned Judicial Magistrate First Class. The petitioner was convicted and sentenced to six months of simple imprisonment and ordered to pay compensation of Rs.5,00,000 to the complainant in a specific case. Both the accused and the complainant were present in person, identified by their counsels, and their statements were recorded under oath.

The complainant stated that the matter had been amicably settled between the parties, reducing the agreement to writing and agreeing to payment in installments. The complainant had received a significant portion of the compensation amount, with a balance remaining. The accused endorsed the complainant's statement as true and correct, accepting liability in case of dishonored cheques. Both parties confirmed the settlement was voluntary and without coercion.

As a result of the compromise, the complainant was allowed to withdraw the complaint, and the matter was compounded. The complaint related to the dishonor of a cheque under Section 138 of the Negotiable Instrument Act was treated as withdrawn, and the convictions and sentences were quashed, acquitting the accused of the accusations.

The petitioner requested a reduction in the compounding fee, citing financial constraints. Referring to legal precedents, the court agreed to impose a lesser compounding fee of Rs.5,000 instead of the standard 15% of the cheque amount. The petitioner was directed to deposit the reduced fee with the H.P. State Legal Services Authority within four weeks, with non-compliance resulting in the automatic revival of the convictions and sentences.

The court disposed of the petition and any pending applications accordingly. The parties were permitted to present a copy of the order downloaded from the High Court website for compliance purposes, with the judgment to be sent to the H.P. State Legal Services Authority for further action.