2019 (3) TMI 2069 - HC - Indian Laws

Dishonour of Cheque - compounding of offence under Section 147 of the Negotiable Instruments Act, 1881 - only grievance of the petitioner is that actual liability of the accused persons is much more than the cheque amount involved in the case - HELD THAT - Law on the point is settled that the Court is to consider dishonour of cheque(s) only which are subject matter of the complaint. The Court cannot enforce compounding of cheques which were not presented by the complainant for encashment. Learned Magistrate has rightly passed the order thereby compounding the offence and at the same time directed the accused to make payment of Rs. 2,00,000/- (i.e., total cheque amount) plus Rs. 20,000/- as litigation expenses and allowing 6% interest upon the cheque amount. The said order has been passed in the spirit of Section 147 of the Act and as per view taken by Hon ble Apex Court in Kanchan Mehta's case 2017 (10) TMI 218 - SUPREME COURT and the same does not call for any interference by this Court. The present petition stands dismissed.

Summary

The High Court dismissed the petition under Section 482 of the Code of Criminal Procedure seeking to set aside an order accepting the compounding of an offence under Section 147 of the Negotiable Instruments Act. The court upheld the lower court's decision based on the importance of compounding of the offence under Section 138 of the Act and directed the accused to pay the total cheque amount, litigation expenses, and interest. The petition was dismissed as the order did not require any interference.