2017 (8) TMI 1256 - SC - Indian Laws

Proceedings instituted against the appellant under Section 420 I.P.C., pending before the Judicial Magistrate First Class at Saundatti - Held that - Today, Mr. K.V. Vishwanathan, learned senior counsel, has handed over two demand drafts for the said sum of ₹ 3,50,000/- (Rupees Three Lakhs and Fifty Thousand), which has been duly acknowledged by the learned counsel appearing for Respondent No.2. Since it is a matter essentially arising under Section 138 of the Negotiable Instruments Act, we are of the view that in the interest of justice and for securing ends of justice, the disputes are also given a quietus. Accordingly, complaint under C.C. No.487 of 2015 pending before the Judicial Magistrate, First Class, at Saundatti stands quashed.

Summary

Issues:
1. Quashing of proceedings under Section 420 IPC by the High Court.
2. Settlement between parties and payment of ?3,50,000.
3. Quashing of complaint under C.C. No.487 of 2015.
4. Mention of another pending case involving the same subject matter.
5. Disposal of the appeal and pending applications.

Analysis:

1. The appellant appealed against the High Court's order declining to quash proceedings under Section 420 IPC. The Supreme Court noted the appellant's willingness to settle the dispute despite having a strong legal position. Both parties agreed to settle the matter by the appellant paying ?3,50,000 to the respondent within two weeks. The Supreme Court acknowledged the payment and decided to give a quietus to the disputes, leading to the quashing of the complaint under C.C. No.487 of 2015 pending before the Judicial Magistrate First Class at Saundatti.

2. The Supreme Court emphasized that the matter primarily arose under Section 138 of the Negotiable Instruments Act. In the interest of justice and to secure the ends of justice, the disputes were resolved amicably between the parties. The settlement led to the quashing of the complaint, thereby bringing an end to the legal proceedings related to the case.

3. It was brought to the Court's attention that another case involving the same subject matter was pending before the Judicial Magistrate First Class, Mysore, where the respondent was one of the accused. Given the amicable settlement between the parties, the Court allowed the respondent to inform the appropriate forum about the settlement to potentially halt the criminal proceedings in the other case if deemed necessary.

4. With the disputes settled and the payment made as per the agreement, the Supreme Court disposed of the appeal and all pending applications related to the case. The judgment effectively concluded the legal proceedings arising from the initial complaint under Section 420 IPC, providing a resolution to the matter through mutual agreement and settlement between the parties involved.