2021 (12) TMI 575 - HC - Indian Laws

Dishonor of cheque - insufficiency of funds - compoundable offence or not - Settlement agreement between parties - HELD THAT - Section 138 of the N.I. Act stipulates the punishment for dishonour of cheque for insufficiency, etc. of funds in the account. As per Section 147 of the N.I. Act, notwithstanding anything contained in the Cr.P.C., every offence punishable under the N.I. Act is deemed to be compoundable. Therefore, the offence of dishonouring of a cheque is a compoundable offence. The facts of the instant case indicate that in pursuance of Order dated 14.02.2020 of the Ld. Trial Court, a Mediation Settlement dated 22.09.2020 was signed by both the parties as per which Respondent No.2 was directed to pay a sum of ₹ 3,00,000/- by way of cash against receipt/DD/account transfer in four instalments. This settlement agreement was signed by both the parties out of their own volition. It can safely be said that when the offence under Section 138 N.I. Act is compounded in accordance with Section 147 N.I. Act, the question of imposition of a sentence on Respondent No.2 does not arise. Section 357(3) Cr.P.C. states that when a Court imposes a sentence, of which fine does not form a part, the Court may order the accused person to pay, by way of compensation any amount that the Court deems fit to the person who has suffered any loss or injury. This Court, therefore, finds no legal infirmity in the impugned Order dated 24.12.2020 of the Ld. Trial Court, and is of the opinion that the decision rendered by the Ld. Trial Court is well-considered and showcases application of judicial mind. This application is completely misconceived and only demonstrates the avarice of the petitioner who wants compensation after settling the dispute. This application is nothing but an abuse of the process of law - petition is dismissed.

Summary

Issues:
1. Revision petition against judgment dated 24.12.2020 passed by the Additional Sessions Judge-03, East Karkardoom Courts, Delhi.
2. Interpretation of Section 138 of the Negotiable Instruments Act, 1881, and Section 357(3) of the Cr.P.C.
3. Applicability of compensation in cases of compounded offences.
4. Scope of revision petition under Sections 397/401 Cr.P.C. read with Section 482 Cr.P.C.

Analysis:

Issue 1:
The revision petition challenges the judgment dated 24.12.2020 passed by the Additional Sessions Judge-03, East Karkardoom Courts, Delhi, in Criminal Appeal No. 27/2020. The petitioner seeks to recover the amount deposited by the respondent and requests an enhancement of the same.

Issue 2:
The case involves the interpretation of Section 138 of the Negotiable Instruments Act, 1881, which deals with the punishment for dishonour of cheques. Additionally, the application of Section 357(3) of the Cr.P.C. is discussed, which allows the court to order the accused to pay compensation to the victim.

Issue 3:
The judgment analyzes the applicability of compensation in cases of compounded offences. It is highlighted that when an offence under Section 138 N.I. Act is compounded under Section 147 N.I. Act, the imposition of a sentence does not arise, and therefore, the question of compensating the victim is deemed irrelevant.

Issue 4:
The scope of the revision petition under Sections 397/401 Cr.P.C. read with Section 482 Cr.P.C. is discussed. The judgment emphasizes that the revisional jurisdiction is limited and should only be invoked in cases of gross error, non-compliance with the law, or arbitrary exercise of judicial discretion. The court cites previous Supreme Court judgments to support the narrow scope of revisional jurisdiction.

In conclusion, the court dismisses the revision petition, finding no legal infirmity in the impugned order. It deems the petitioner's application as an abuse of the legal process and imposes a cost on the petitioner, directing the amount to be deposited in favor of the Armed Forces Battle Casualties Welfare Fund within a specified period.