2018 (11) TMI 762 - HC - Indian Laws

Compromise of dispute - Dishonor of Cheque - Section 138 of Negotiable Instruments Act - whether a compromise, at this stage, can be permitted to be effected to between the parties where the petitioner has been charged under Section 138 of the Act? - Held that - This court is not powerless in such situation and adequate powers have been conferred upon it not only under sections 397 read with Section 401 or Section 482 Cr.P.C. (hereinafter referred to as the Code) but also under Section 147 of the Act for accepting the settlement entered into between the parties and to quash the proceedings arising out of the proceedings, which have consequently culminated into a settlement. This power has been conferred to subserve the ends of justice or/and to prevent abuse of the process of any Court. Though, such power is required to be exercised with circumspection and in cases which do not involve heinous and serious offence of mental depravity or offences like murder, rape, dacoity etc. 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. Since, the petitioner has paid the entire amount as agreed to between the parties, 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 about one year and has deposited the amount as was agreed to between the parties - the impugned substantive sentence of simple imprisonment imposed in this case shall stand modified - petition disposed off.

Summary

Issues:
1. Compromise settlement in a case under Section 138 of the Negotiable Instruments Act.
2. Power of the High Court to accept settlements and quash proceedings under Section 482 of the Cr.P.C.
3. Application of recent Supreme Court judgments on quashing criminal proceedings.

Issue 1: Compromise settlement in a case under Section 138 of the Negotiable Instruments Act:
The judgment involves a case where the complainant filed a complaint under Section 138 of the Negotiable Instruments Act against the petitioner for dishonoring a cheque. The parties expressed a desire to compromise the matter during the pendency of the petition, leading to a settlement of the full claim at ?1,10,000. The petitioner paid ?70,000 earlier and the remaining ?40,000 in court. The question arises whether a compromise can be permitted in such a case, considering the criminal charge under Section 138 of the Act.

Issue 2: Power of the High Court to accept settlements and quash proceedings under Section 482 of the Cr.P.C.:
The High Court has the power under Section 482 of the Cr.P.C. to accept settlements between parties and quash proceedings to prevent abuse of court processes. This power is to serve the ends of justice, with caution exercised in cases involving serious offenses like murder or rape. The court referred to a Supreme Court judgment outlining principles for exercising powers under Section 482, emphasizing that the decision to quash proceedings depends on the facts of each case.

Issue 3: Application of recent Supreme Court judgments on quashing criminal proceedings:
The judgment refers to recent Supreme Court decisions emphasizing the compensatory nature of Section 138 of the Act and encouraging compounding at the initial stage. The Court can close proceedings if the accused pays the cheque amount with costs and interest. Recent judgments highlight that in the interest of justice, the court can quash proceedings even without the complainant's consent if the complainant has been compensated. The judgment applied these principles to quash the complaint and modify the sentence to the amount already paid by the petitioner, in line with recent Supreme Court decisions.

In conclusion, the judgment illustrates the High Court's power to accept settlements and quash proceedings under Section 482 of the Cr.P.C., especially in cases involving compromise settlements in Section 138 cases. The application of recent Supreme Court judgments guides the court in ensuring justice and preventing the abuse of court processes in such matters.