2022 (11) TMI 849 - HC - Indian Laws

Dishonor of Cheque - amicable settlement of the matter - compounding of offences - applicability of section 138 and 147 of NI Act - HELD THAT - Section 147 of the N.I. Act has made every offence punishable under the N.I. Act as compoundable. As such, there is no bar for the parties in the proceeding to compound the offence - Admittedly, in the instant case, the cheque amount is for a sum of Rs. 2,50,000/-, as such, the graded cost would be Rs. 37,500/-. The parties are permitted to compound the offence under Section 147 of the N.I. Act. The matter is settled as per the terms mentioned in the joint application filed by both side and the petitioner herein who was accused in the Trial Court is acquitted of the offence punishable under Section 138 of the N.I. Act - the present revision petition stands disposed of.

Summary

Issues:
Challenge to judgment of conviction and order on sentence under Section 138 of the Negotiable Instruments Act, 1881. Settlement and compromise between the parties under Section 147 of the N.I. Act. Payment of graded cost as per guidelines laid down by the Supreme Court in Damodar S. Prabhu v. Sayed Babalal H.

Analysis:
The revision petition was filed challenging the conviction and sentence passed by the Trial Court under Section 138 of the Negotiable Instruments Act. Both parties, through their counsels, filed a joint application under Section 147 of the N.I. Act, stating that they have settled the matter amicably and have compromised. The petitioner acknowledged paying Rs. 2,75,000 to the respondent as a full settlement, with a Demand Draft for Rs. 1,00,000 and allowing the respondent to withdraw the remaining Rs. 1,75,000 deposited in the Trial Court.

The Court noted the settlement and the receipt of the Demand Draft by the respondent, confirming the amicable resolution. It was established that both parties consented to the settlement voluntarily. The Court, considering the joint application and submissions made, allowed the parties to compound the offence under Section 147 of the N.I. Act, subject to the payment of graded cost by the petitioner.

Referring to the guidelines set by the Supreme Court in Damodar S. Prabhu v. Sayed Babalal H, the Court emphasized the requirement for the accused to pay 15% of the cheque amount as graded cost. In this case, with a cheque amount of Rs. 2,50,000, the graded cost was determined to be Rs. 37,500. The petitioner deposited the required amount through a Demand Draft, which was accepted by the Court.

Based on the joint application, the guidelines from the Supreme Court, and the circumstances of the case, the Court allowed the compounding of the offence under Section 147 of the N.I. Act. Consequently, the petitioner was acquitted of the offence under Section 138 of the N.I. Act, and the revision petition was disposed of. The Court directed the Registry to transmit copies of the order to both the Trial Court and the Sessions Judge's Court for necessary action.