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2018 (11) TMI 499 - HC - Indian LawsDishonor of Cheque - Section 138 of the Negotiable Instruments Act - case of petitioner is that Since the petitioner has deposited the entire compensation amount of ₹ 4,25,000/- therefore, the matter can be given quietus - Conviction and sentence under Section 138 of the Negotiable Instruments Act, 1881 - Held that - This Court after being satisfied that the cheque amount with the assessed cost and interest has been paid, can close the proceedings even in absence of the complainant. The issue is no longer res integra in view of the very recent judgment of the Hon ble Supreme Court in Bhangu Trading Co. and another versus Surjit Singh (dead) 2018 (8) TMI 1345 - SUPREME COURT OF INDIA , where it was held that Since the parties have settled the disputes, to do complete justice, the disputes should be given a quietus, subject to appropriate terms. Since, the petitioner has already paid the entire compensation amount, therefore, quashing of the complaint initiated at the instance of complainant/respondent would be a step towards securing the ends of justice and to prevent abuse of process of the Court, especially, when the petitioner is facing pangs and suffered agony of protracted trial and thereafter appeal/revision for the last more than three years and has deposited the entire compensation amount of ₹ 4,25,000/- - it is ordered that the impugned substantive sentence of simple imprisonment imposed in this case shall stand modified and substituted in lieu of the amount of compensation of ₹ 4,25,000/- that stands already deposited/paid by the petitioner. Petition disposed off.
Issues:
1. Conviction and sentencing under Section 138 of the Negotiable Instruments Act. 2. Power of the Court to quash proceedings based on settlement between parties. 3. Applicability of recent judgments by the Hon'ble Supreme Court in similar cases. Issue 1: Conviction and Sentencing under Section 138 of the Negotiable Instruments Act The judgment outlines a case where a complaint was filed under Section 138 of the Negotiable Instruments Act, alleging dishonor of cheques amounting to ?4,05,000. The trial magistrate convicted the petitioner, sentencing them to six months of simple imprisonment and compensation of ?4,25,000. Despite an unsuccessful appeal, the petitioner filed a revision petition. Issue 2: Power of the Court to Quash Proceedings Based on Settlement The Court, upon hearing that the matter had been settled amicably between the parties, considered the settlement amount of ?50,000 paid in court and a post-dated cheque of ?70,000. Citing its powers under Section 397 read with Section 401 or Section 482 of the Cr.P.C. and Section 147 of the Act, the Court accepted the settlement to prevent abuse of process and secure justice. The Court referred to principles laid down by the Hon'ble Supreme Court to exercise such powers judiciously. Issue 3: Applicability of Recent Judgments by the Hon'ble Supreme Court The judgment extensively refers to recent Supreme Court decisions, emphasizing that Section 482 of the Cr.P.C. preserves the High Court's inherent powers to prevent abuse of process or secure justice. Notably, the Court cited cases where convictions were set aside upon payment acknowledgment, highlighting the compensatory nature of Section 138 offenses and the importance of settlements. The Court's decision to modify the sentence to compensation already paid and release the deposited amount to the complainant exemplifies the application of recent legal precedents. In conclusion, the judgment showcases the Court's adherence to legal principles, especially in cases involving settlement and compensation under Section 138 of the Negotiable Instruments Act. The detailed analysis of relevant legal provisions and recent judgments by the Hon'ble Supreme Court demonstrates a holistic approach to securing justice and preventing abuse of the legal process in such matters.
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