9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (7) TMI 817 - HC - Indian LawsDishonor of Cheque - compounding of offences u/s 147 of the Negotiable Instruments Act, 1881 - section 138 of NI Act - HELD THAT - The issue regarding compounding under the Negotiable Instruments Act at the stage of appeal as well as revision has come before this court as well as before the Hon'ble Supreme Court and they have upheld that the powers under Section 147 of the Negotiable Instruments Act can be invoked at any stage of the proceedings i.e. at the stage of trial, appeal or at the revisional jurisdiction and that the courts should be liberal in exercising such powers. It was also held in the matter of DAMODAR S. PRABHU VERSUS SAYED BABALAL H. 2010 (5) TMI 380 - SUPREME COURT and KAUSHALYA DEVI MASSAND VERSUS ROOPKISHORE KHORE 2011 (3) TMI 1491 - SUPREME COURT , to the effect that compromise in question would definitely go a long way to strengthen the mutual relationship between the parties and would serve as an ever lasting tool in their favour. Such an exercise would be in consonance with the spirit of Section 147 of the Negotiable Instruments Act. In view of the parties having settled the matter and the amount having been deposited by the petitioner with respondent No.1 and in light of the consent of the parties, it is deemed appropriate to invoke the power vested by virtue of Section 147 of the Negotiable Instruments Act, 1881 and allow the compounding of the offence under Section 138 of the Negotiable Instruments Act and set aside the judgments of both the Courts below - petition allowed.
Issues:
Compounding under the Negotiable Instruments Act at the stage of appeal and revision. Analysis: The revision petition was filed against the judgment and order convicting the petitioner under Section 138 of the Negotiable Instruments Act. The petitioner had deposited amounts with the respondent, and the matter was referred to the Mediation Centre. The respondent acknowledged the remittance of the entire amount and had no objection to compounding the offence under Section 147 of the Act. The court discussed the compounding provision under the Act and cited various precedents, emphasizing that the power under Section 147 can be invoked at any stage of the proceedings. The court referred to the case of K.M. Ibrahim Vs. K.P Mohammed & Another, highlighting the legislative intent behind the amendment to facilitate settlements. The court noted that once a case is compounded under Section 147, the conviction under Section 138 should be set aside. The court further discussed the applicability of Section 320 Cr.P.C. and Article 142 of the Constitution in allowing the compounding of offences under the Negotiable Instruments Act. The judgment referred to various decisions supporting the view that once a case is compounded under Section 147, the conviction under Section 138 should be annulled. The court emphasized the compensatory nature of cheque dishonour cases and the importance of prioritizing a compensatory mechanism over punitive measures. Citing cases like Cochin Hotels Co.(P) Ltd Vs. Kairali Granites and Damodar S. Prabhu Vs. Sayed Babalal H., the court highlighted the significance of compromise in strengthening relationships between parties. Ultimately, the court allowed the compounding of the offence under Section 138 of the Negotiable Instruments Act, setting aside the judgments of both lower courts. The petitioner was ordered to be released if confined in jail and not required in any other case. The judgment underscored the importance of parties reaching a settlement and the court's power to invoke Section 147 for compounding even at the appellate stage, in line with the legislative intent and judicial precedents.
|
