2021 (2) TMI 811 - HC - Indian Laws

Dishonor of Cheque - Section 138 of the Negotiable Instruments Act, 1881 - compounding of offences - HELD THAT - The petitioner is reported to be in custody, having surrendered on 12.02.2021, consequent upon the dismissal of his appeal. Now that the offence is compounded and the impugned judgments and orders are set aside, the petitioner Ratnakant Krishna Gaude will have to be released forthwith. Revision application disposed off.

Summary

Issues:
1. Conviction under Section 138 of the Negotiable Instruments Act, 1881 for dishonour of a cheque.
2. Request for compounding the offence.
3. Consideration of costs in compounding the offence.
4. Clearance of dues and release of the petitioner.

Analysis:

Issue 1: The petitioner was convicted under Section 138 of the Negotiable Instruments Act, 1881 for dishonour of a cheque amounting to ?1,63,700. The courts had recorded concurrent findings, indicating no substantial grounds for interference.

Issue 2: The petitioner, a driver residing in a remote area of Goa, faced financial constraints due to the Covid-19 pandemic, preventing timely payment to the respondent Society. However, the petitioner had paid a significant portion of the cheque amount, with only ?45,000 remaining due. The petitioner sought to compound the offence, offering to pay the balance amount promptly.

Issue 3: The respondent's counsel argued for imposing costs on the petitioner as a customary practice in such cases, citing legal precedent. Despite the general principle, the court found the petitioner's efforts to clear dues commendable, considering the petitioner's background and the impact of the pandemic on his employment. Consequently, the court excused the petitioner from paying costs, given the circumstances of the case.

Issue 4: With the petitioner clearing the outstanding dues related to the dishonoured cheque, the court accepted the plea for compounding the offence. As a result, the impugned judgments and orders were set aside, leading to the petitioner's immediate release from custody. The revision application was disposed of accordingly, with the petitioner's bail application becoming irrelevant post-compounding.

In conclusion, the court granted permission for compounding the offences based on the petitioner's efforts to settle the dues, leading to the setting aside of previous judgments and the petitioner's release from custody.