2023 (12) TMI 429 - HC - Indian Laws

Dishonour of Cheque - matter settled between the parties - compounding of offence under Section 138 N.I. Act - HELD THAT - This Court in Vatsa Electronics Vs. Pala Ram Anr. 2022 (4) TMI 353 - PUNJAB AND HARYANA HIGH COURT has also held that once a settlement is being effected, then in terms of Section 147 of the Negotiable Instruments Act and Section 320 Cr.P.C., the accused ought to be acquitted as the offence stands compounded. Since, the parties have voluntarily settled the disputes between themselves, it is a fit case for allowing them to compound the offence. The order dated dated 19.09.2023 passed by the Additional Sessions Judge, Jalandhar, as well as the judgment of conviction and order of sentence dated 12.03.2018 passed by the Judicial Magistrate 1st Class, Jalandhar, are hereby set aside - revision petition is allowed.

Summary

Issues:
The issues involved in the judgment are the dismissal of the appeal against the conviction and sentence, the compounding of the offence under Section 138 of the Negotiable Instruments Act, and the settlement between the parties leading to the acquittal of the petitioner.

Appeal Dismissal:
The petitioner had filed a revision petition against the order of the Additional Sessions Judge, Jalandhar, which dismissed the appeal against the judgment of conviction and sentence passed by the Judicial Magistrate 1st Class, Jalandhar, on 12.03.2018.

Conviction and Sentence:
The complainant had visited the accused, who took Rs.12,00,000/- and failed to return the amount as agreed, leading to the initiation of proceedings under Section 138 of the Negotiable Instruments Act. The accused was ultimately held guilty, convicted under Section 138, and sentenced to two years of rigorous imprisonment along with a compensation order.

Compounding of Offence:
The petitioner filed a revision petition along with an application under Section 320(6) read with Section 482 Cr.P.C. for compounding the offences under Section 138 of the Negotiable Instruments Act, as a settlement had been reached between the parties. A lump sum payment of Rs.5,75,000/- was made towards the dishonoured cheques, enabling the compounding of the offence as per Section 147 of the Act.

Acquittal and Release:
The High Court allowed the revision petition, setting aside the previous orders and acquitting the petitioner of the charge under Section 138 of the Negotiable Instruments Act. The petitioner was ordered to be released forthwith if not required in any other case, as the parties had voluntarily settled their disputes.

This judgment highlights the legal provisions for compounding offences under the Negotiable Instruments Act, emphasizing the possibility of acquittal upon settlement between the parties. The Court's decision to allow the compounding of the offence in light of the mutual settlement showcases the importance of amicable resolutions in legal proceedings.