2021 (11) TMI 451 - HC - Indian Laws

Dishonor of Cheque - service of legal notice - amicable settlement entered into - compounding of offences - guilty of having committed offence punishable under Section 138 of the Negotiable Instruments Act - HELD THAT - Complainant on oath states that since he has received ₹ 2,25,000/- in cash and accused has agreed for release of ₹ 75,000/- lying deposited with the learned trial Court, in his favour, as such, he shall have no objection, in case the accused is acquitted of the charges framed against him under Section 138 of the Act. Complainant further states that he has come to the court to make statement, of his own volition and without there being any external pressure. His statement is taken on record. Since the parties to lis have already resolved to settle the dispute inter se them amicably and in terms of compromise between them, ₹ 2,25,000/- has been received by complainant and remaining amount of ₹ 75,000/- has been agreed to be released in his favour by the accused, this court sees no impediment in accepting the prayer made in the present petition, for compounding of the offence, while exercising power under S. 147 of the Act as well as guidelines laid down by Hon'ble Apex Court in DAMODAR S. PRABHU VERSUS SAYED BABALAL H. 2010 (5) TMI 380 - SUPREME COURT , whereby it has been held that court while exercising power under S. 147 can proceed to compound offence even in those cases, where accused stands convicted. Judgments/order of conviction and sentence passed by both the learned Courts below are quashed and set aside and accused is acquitted of the charges framed against him under S. 138 of the Act. Bonds furnished by the accused are discharged - Revision allowed.

Summary

Issues:
Challenge to judgment affirming conviction and sentence under S. 138 of the Negotiable Instruments Act - Compounding of offence under S. 147 of the Act - Settlement between parties for payment and release of deposited amount.

Analysis:
The case involved a challenge to a judgment convicting the accused under S. 138 of the Negotiable Instruments Act for dishonoring a cheque issued to discharge a debt. The complainant alleged that despite legal notice, the accused failed to make the payment, leading to the initiation of legal proceedings. The trial court, based on evidence, found the accused guilty and sentenced him to imprisonment and compensation. The accused appealed the decision, which was dismissed by the Sessions Judge, prompting the accused to file a criminal revision seeking acquittal.

During the proceedings, the accused informed the court that the entire compensation amount had been paid to the complainant. The counsel for the accused requested the court to compound the offence under S. 147 of the Act, as the complainant confirmed receiving a portion of the amount in cash and agreed for the release of the remaining deposited sum. The complainant, present in court, confirmed the receipt of the cash amount and expressed no objection to the release of the remaining sum, indicating a mutual settlement between the parties.

Considering the amicable settlement between the parties, where the complainant received a portion of the compensation and agreed for the release of the remaining amount, the court exercised its power under S. 147 of the Act and the guidelines set by the Apex Court to compound the offence. Consequently, the court allowed the revision, quashed the previous judgments, acquitted the accused of the charges under S. 138 of the Act, discharged the bonds, and ordered the release of the remaining amount deposited with the trial court to the complainant's bank account.

In conclusion, the court accepted the settlement between the parties, compounded the offence under S. 147 of the Act, and acquitted the accused of the charges, ensuring the release of the remaining compensation amount to the complainant as per their agreement.