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2022 (7) TMI 972 - HC - Indian LawsDishonor of Cheque - entire amount of the cheque has been paid to the the respondent-Bank - compounding of offences u/s 147 of the Negotiable Instrument Act - HELD THAT - The issue as regards 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 Vs. Sayed Babalal H., 2010 (5) TMI 380 - SUPREME COURT and Kaushalya Devi Massand Vs. Roopkishore, 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. In view of the parties having settled the matter and the amount having been deposited by the petitioner with the respondent-Bank and in the light of consent of the parties, it appropriate to invoke the power vested by virtue of Section 147 of the Negotiable Instruments Act, 1881 and allow the compounding of the offence under Section 138 of the Negotiable Instruments Act - Petition allowed.
Issues:
1. Conviction and sentencing under Section 138 of the Negotiable Instruments Act, 1881. 2. Compounding of the offence under Section 147 of the Negotiable Instruments Act. Detailed Analysis: 1. Conviction and Sentencing: The petitioner filed a petition against the judgment of conviction dated 29.03.2019 passed by the Judicial Magistrate Ist Class, Faridabad under Section 138 of the Negotiable Instruments Act, 1881. The petitioner was convicted and sentenced to undergo imprisonment for 6 months and pay a compensation of Rs.1,30,000. Subsequently, the Sessions Judge, Faridabad, reduced the sentence to 3 months. The petitioner had already deposited some amount with the respondent-Bank, leading to the request for compounding the offence under Section 147 of the Act. 2. Compounding of the Offence: The respondent-Bank acknowledged that the entire amount had been remitted and had no objection to compounding the offence under Section 147 of the Negotiable Instruments Act. The court referred to previous judgments, including the Supreme Court's decision in K.M. Ibrahim Vs. K.P Mohammed, emphasizing the liberal exercise of powers under Section 147 at any stage of the proceedings. Various cases were cited to support the principle that once an offence is compounded under Section 147, the conviction under Section 138 should be set aside. The court highlighted that Section 147 of the Act allows compounding even at the appellate stage and that the provision overrides the Code of Criminal Procedure regarding compounding offences. Additionally, the court invoked Article 142 of the Constitution to pass appropriate orders in line with the provisions of Section 320(8) of the Cr.P.C. The judgment also referenced cases like Cochin Hotels Co.(P) Ltd Vs. Kairali Granites and Damodar S. Prabhu Vs. Sayed Babalal H., emphasizing the compensatory nature of cheque dishonor offences and the importance of strengthening mutual relationships through compromise. Ultimately, in light of the settlement between the parties and the amount deposited with the respondent-Bank, the court invoked its power under Section 147 of the Negotiable Instruments Act, allowed the compounding of the offence under Section 138, and set aside the judgments of both lower courts. The petitioner was acquitted, and if in custody, was ordered to be released forthwith, subject to legal requirements.
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