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2022 (5) TMI 70 - HC - Indian LawsDishonor of Cheque - Compounding of offences - It was contended that the matter has been amicably resolved between the petitioner and the complainant-respondent - 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. The offence is thus ordered to be compounded in light of the substantive statutory provision and judicial mandate. The judgment order declaring the petitioner as proclaimed person passed by the Additional Sessions Judge, Gurugram and the judgment of conviction and order of sentence passed by the Judicial Magistrate First Class, Gurugram are accordingly set aside - the petitioner shall be released on bail subject to his involvement, if any, in any other case, upon payment of cost of Rs. 10,000/- to be deposited by the petitioner with the District Legal Services Authority, Gurugram within one month from the date of receipt of certified copy of this order. Petition allowed.
Issues Involved:
1. Declaration of the petitioner as a proclaimed person. 2. Compounding of the offence under Section 147 of the Negotiable Instruments Act, 1881. 3. Setting aside the judgments of conviction and order of sentence. Detailed Analysis: 1. Declaration of the Petitioner as a Proclaimed Person: The petitioner was declared a proclaimed person by the Additional Sessions Judge, Gurugram on 26.10.2021 due to his non-appearance on the date of pronouncement of the judgment in his appeal. The court noted that no FIR under Section 174A IPC had been registered in the present case, and the petitioner was not declared a proclaimed person in the context of the criminal complaint. The court relied on precedents where it was held that continuation of proceedings under Section 174A IPC, after the main complaint under Section 138 of the Negotiable Instruments Act had been withdrawn due to a compromise, would constitute an abuse of the process of law. 2. Compounding of the Offence under Section 147 of the Negotiable Instruments Act, 1881: The petitioner sought compounding of the offence under Section 147 of the Negotiable Instruments Act, 1881, asserting that the matter had been amicably resolved with the complainant. The court noted that the Supreme Court has upheld the power to compound offences under Section 147 at any stage of the proceedings, including trial, appeal, or revision. The court cited several judgments affirming this position, emphasizing that once an offence is compounded, the conviction under Section 138 should also be set aside. The court highlighted that the offence related to the dishonour of a cheque has a compensatory profile, and a compromise between parties should be given precedence to resolve the dispute. 3. Setting Aside the Judgments of Conviction and Order of Sentence: The court set aside the judgment dated 26.10.2021, which declared the petitioner a proclaimed person, as well as the judgment of conviction and order of sentence dated 25.07.2017 and 27.07.2017, respectively. The court ordered the petitioner to be released on bail upon payment of costs amounting to Rs. 10,000/- to the District Legal Services Authority, Gurugram, within one month from the date of receipt of the certified copy of the order. The court's decision was based on the principles that the offence had been compounded, and the continuation of proceedings would be an abuse of the process of law. Conclusion: The court granted the petition, allowing the compounding of the offence under Section 147 of the Negotiable Instruments Act, 1881, and set aside the judgments of conviction and the order declaring the petitioner a proclaimed person. The petitioner was ordered to be released on bail upon fulfilling the stipulated conditions.
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