2023 (10) TMI 153 - HC - Indian Laws

Dishonour of Cheque - insufficient funds - amicable settlement of dues - compounding of offence - HELD THAT - Since, in the instant case, the petitioner-accused after being convicted under Section 138 of the Act, has amicably settled the matter with the complainant-respondent before the learned Mediator and as per the settlement the complainant-respondent has abandoned and relinquished all his rights and entitlements in respect of the cheque in question forming subject matter of the proceedings under Section 138 of the NI Act, the instant prayer for compounding the offence can be accepted in terms of the aforesaid judgments passed by the Hon ble Apex Court in K. Subramanian Vs. R. Rajathi 2009 (11) TMI 1013 - SUPREME COURT . In view of the detailed discussion made hereinabove as well as law laid down by the Hon ble Apex Court, the present matter is ordered to be compounded, as per the terms and conditions, recorded by the learned Mediator and reproduced hereinabove. Accordingly, judgment of conviction, dated 31.05.2017, and order of sentence dated 02.06.2017, passed by the learned Judicial Magistrate First Class, Karsog, District Mandi, H.P., in Complaint No. 83 of 2014, and affirmed by the learned Additional Sessions Judge-I, Mandi, District Mandi, H.P., vide judgment dated 12.08.2022, in Criminal Appeal No. 51 of 2017, are quashed and set-aside and the petitioner-accused is acquitted of the charge framed against him under Section 138 of the Act. Taking into consideration the law laid down by the Hon ble Apex Court and the financial condition of the petitioner, as he is a poor person, since the competent Courts can reduce the compounding fee with regard to the specific facts and circumstances of the case, the petitioner is directed to deposit token compounding fee of Rs.5000/- (rupees three thousand) only with the H.P. State Legal Services Authority Shimla, H.P., within four weeks from today. Petition disposed off.

Summary

Issues Involved:
1. Legality of the conviction under Section 138 of the Negotiable Instruments Act.
2. Mediation and settlement between the parties.
3. Compounding of the offence and imposition of compounding fee.

Summary:

1. Legality of the Conviction under Section 138 of the Negotiable Instruments Act:
The petitioner-accused filed a petition under Section 397 of the Code of Criminal Procedure against the judgment dated 12.08.2022, passed by the Additional Sessions Judge-I, Mandi, which affirmed the judgment of the Judicial Magistrate First Class, Karsog, convicting the petitioner under Section 138 of the Negotiable Instruments Act. The accused had issued a cheque for Rs. 7,00,000/- to liquidate his financial liability towards the complainant, which was dishonored due to insufficient funds. The Trial Court convicted the accused and sentenced him to six months of simple imprisonment and to pay Rs. 7,20,000/- as compensation.

2. Mediation and Settlement Between the Parties:
During the pendency of the petition, the matter was referred for mediation, and a settlement was reached on 29.08.2023. As per the settlement, the complainant relinquished all rights concerning the cheque except for the amount of Rs. 3,60,000/- already deposited by the petitioner in the Court registry. The complainant confirmed the settlement and expressed no objection to quashing the conviction and sentence.

3. Compounding of the Offence and Imposition of Compounding Fee:
The Court, acknowledging the settlement, referred to Section 147 of the Negotiable Instruments Act and relevant Supreme Court judgments, allowing the compounding of the offence. The Court ordered the release of Rs. 3,60,000/- to the complainant and quashed the conviction and sentence. Considering the petitioner's financial condition, the Court reduced the compounding fee to Rs. 5,000/- to be deposited with the H.P. State Legal Services Authority within four weeks.

Conclusion:
The petition was disposed of, with the conviction and sentence quashed, and the petitioner directed to pay a reduced compounding fee.