2022 (6) TMI 1035 - HC - Indian Laws

Dishonor of Cheque - amicable settlement of disputes between the parties - compounding of the offence - Section 147 of the Negotiable Instruments Act - HELD THAT - Taking into consideration the fact that the matter, which led to filing of the criminal case under Section 138 of the Negotiable Instruments Act, now stands settled between the parties and as per directions of the Court, 5% of the cheque amount has already been deposited by the petitioner as compounding fee with HP State Legal Services Authority, Shimla, this Court orders the compounding of the offence in question. The petition as well as application filed for compounding of the offence stand disposed of.

Summary

Issues:
1. Challenge to judgment by Trial Court and Appellate Court
2. Settlement between parties
3. Application for compounding of offence
4. Legal principles governing compounding of offence

Analysis:
1. The petitioner challenged the judgment passed by the Trial Court and upheld by the Appellate Court, which sentenced the petitioner to imprisonment and compensation in a criminal complaint case. The matter was listed for settlement on a subsequent date, where both parties informed the Court of an amicable settlement. The case was adjourned for the petitioner to file an application for compounding the offence, subject to certain conditions, and to extend the time for furnishing bail bonds.

2. An application for compounding of the offence was filed under Section 147 of the Negotiable Instruments Act, accompanied by a receipt showing the deposit of 5% of the cheque amount with the State Legal Services Authority, as per the Court's directions. The petitioner's counsel cited the settlement between the parties as a reason for compounding the offence, referring to legal precedents supporting such action.

3. Considering the settlement between the parties and the deposit made as per the Court's directions, the Court exercised its power to compound the offence. Consequently, the judgments and sentences passed by the Trial Court and the Appellate Court were set aside. The petition and the application for compounding of the offence were disposed of accordingly, along with any other pending miscellaneous applications.

This detailed analysis outlines the legal proceedings, the settlement between the parties, the application for compounding the offence, and the Court's decision based on the principles of law and the actions taken by the parties involved.