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2022 (4) TMI 1147 - HC - Indian LawsDishonor of Cheque - acquittal of accused - settlement of matter between the parties - compounding of offences - Section 147 of the Negotiable Instruments Act - HELD THAT - The issue regarding compounding under the Negotiable Instruments Act at the stage of appeal as well as revision has come before this court as well as before the Hon'ble Supreme Court and they have upheld that the powers under Section 147 of the Negotiable Instruments Act can be invoked at any stage of the proceedings i.e. at the stage of trial, appeal or at the revisional jurisdiction and that the courts should be liberal in exercising such powers. It was also held in the matter of DAMODAR S. PRABHU VERSUS SAYED BABALAL H. 2010 (5) TMI 380 - SUPREME COURT and KAUSHALYA DEVI MASSAND VERSUS ROOPKISHORE KHORE 2011 (3) TMI 1491 - SUPREME COURT , to the effect that compromise in question would definitely go a long way to strengthen the mutual relationship between the parties and would serve as an ever-lasting tool in their favour. Such an exercise would be in consonance with the spirit of Section 147 of the Negotiable Instruments Act, 1881. In view of the parties having settled the matter and the amount having been deposited by the petitioner with the respondent-complainant and in the light of consent of the parties, it is deemed appropriate to invoke the power vested by virtue of Section 147 of the Negotiable Instruments Act and allow the compounding of the offence under Section 138 of the Negotiable Instruments Act and set aside the judgment of the Courts below and acquit the petitioner of the charges against him. The petitioner, if confined to jail in the present case shall be released forthwith, in accordance with law. Petition allowed.
Issues:
1. Conviction and sentencing under Section 138 of the Negotiable Instruments Act, 1881. 2. Compounding of the offense under Section 147 of the Negotiable Instruments Act. 3. Application of legal principles regarding compounding at various stages of the legal proceedings. 4. Interpretation of relevant case laws and judgments concerning compounding in similar cases. 5. Consideration of the compensatory nature of offenses related to dishonoring of cheques. Analysis: 1. The judgment under consideration pertains to a criminal complaint under Section 138 of the Negotiable Instruments Act, where the petitioner was convicted and sentenced to imprisonment and compensation. The appeal against this conviction was dismissed by the Additional Sessions Judge, leading to the petitioner seeking relief from the High Court. 2. The petitioner, during the proceedings, expressed willingness to comply with the payment of compensation and had already deposited a significant amount towards the same. Eventually, the entire amount was remitted to the respondent-complainant, leading to a request for compounding of the offense under Section 147 of the Act. 3. The court deliberated on the issue of compounding offenses under the Negotiable Instruments Act, emphasizing that the power under Section 147 can be invoked at any stage of the proceedings, including trial, appeal, or revision. The court cited relevant case laws and legal principles, highlighting the importance of facilitating settlements and being liberal in exercising such powers. 4. Reference was made to various judgments, including K.M. Ibrahim Vs. K.P Mohammed, emphasizing that once a case is compounded under Section 147, the conviction under Section 138 should be set aside. The court also invoked Article 142 of the Constitution to pass appropriate orders in line with the provisions of Section 320(8) of the Criminal Procedure Code to ensure justice to the parties involved. 5. Further, the court considered the compensatory nature of offenses related to dishonoring of cheques, emphasizing the precedence given to compensatory mechanisms over punitive measures. The court highlighted the significance of strengthening mutual relationships between parties through compromises, aligning with the spirit of Section 147 of the Negotiable Instruments Act. In conclusion, the High Court allowed the petition, invoking the power vested by Section 147 of the Negotiable Instruments Act to compound the offense under Section 138, setting aside the judgments of the lower courts and acquitting the petitioner. The petitioner was ordered to be released forthwith if confined to jail, in accordance with the law.
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