2022 (5) TMI 639 - HC - Indian Laws

Dishonor of Cheque - acquittal of accused - Section 138 of NI Act - HELD THAT - On perusal of the entire materials available on record, it is seen that the dispute between the petitioner and the respondent has resolved. In view of the same, the offence against the petitioner/accused is compounded and petitioner is acquitted of all the charges. This Criminal Revision Case is allowed

Issues:
1. Acquittal by trial court and subsequent conviction by Sessions Court.
2. Appeal against conviction and sentencing.
3. Petition for suspension of sentence and subsequent modification.
4. Deposit of compensation amount by the petitioner.
5. Compromise between the parties.
6. Resolution of the dispute leading to the acquittal of the accused.

Issue 1: Acquittal by trial court and subsequent conviction by Sessions Court
The petitioner was acquitted by the trial court in a case under Section 138 of the Negotiable Instruments Act. However, the Sessions Court reversed the acquittal and convicted the petitioner, sentencing him to six months of simple imprisonment and a compensation amount. This led to the petitioner filing a Criminal Revision Case before the High Court challenging the order of conviction.

Issue 2: Appeal against conviction and sentencing
The petitioner contended that there were business transactions between him and the respondent for the supply of yarns, resulting in a due amount. The trial court acquitted the petitioner based on accounting disputes revealed during the trial. However, the Sessions Court, finding the statutory presumption intact, convicted and sentenced the petitioner. This discrepancy led to the filing of the revision case.

Issue 3: Petition for suspension of sentence and subsequent modification
During the revision process, the petitioner filed a petition for the suspension of the sentence and later a modification petition due to financial constraints. The High Court initially suspended the sentence with a condition to deposit 50% of the compensation amount, which was later modified to ease the financial burden on the petitioner.

Issue 4: Deposit of compensation amount by the petitioner
The petitioner deposited a portion of the compensation amount before the trial court as directed by the High Court. This deposit was crucial in the subsequent resolution of the case through a compromise between the parties.

Issue 5: Compromise between the parties
After reconciliation of accounts and understanding the difficulties faced by the petitioner, the respondent agreed to a compromise. The parties filed a Joint Memo of Compromise before the High Court, where the respondent agreed to receive the cheque amount and credit the deposited sum by the petitioner. This compromise led to the resolution of the dispute and the acquittal of the accused.

Issue 6: Resolution of the dispute leading to the acquittal of the accused
Upon reviewing the submissions and materials on record, the High Court observed that the dispute between the parties had been resolved through the compromise. Consequently, the offence against the petitioner was compounded, and the petitioner was acquitted of all charges. The High Court allowed the Criminal Revision Case, setting aside the previous conviction and sentence.

In conclusion, the High Court allowed the Criminal Revision Case, setting aside the conviction and sentence, and directed the return of the deposited amount to the respondent. The resolution through compromise led to the acquittal of the accused, bringing an end to the legal proceedings.

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