2024 (1) TMI 879 - SC - Indian Laws

Dishonour of Cheque - compounding of sentences - HELD THAT - There is doubt that the offence punishable under Section 138 of the NIA, 1881 is compoundable. In the said circumstances, the parties are desirous to compound the sentence - there are no reason for not to compound the sentence of the appellant and acquit the appellant. The appeal is allowed and appellant is acquitted - The respondent shall furnish his details of the bank account to the Registry of this Court.

Summary

Issues involved: Appeal against conviction u/s 138 of NIA, 1881, compoundability of the offence, acquittal and transfer of amount.

Summary:

Appeal against Conviction u/s 138 of NIA, 1881:
The appellant appealed against the order convicting them under Section 138 of the Negotiable Instruments Act, 1881. The High Court of Judicature at Bombay, Bench at Nagpur confirmed the conviction. The appellant was sentenced to pay compensation and undergo imprisonment. The Supreme Court heard both counsels and noted that the appellant had deposited the required amount in a fixed deposit as directed by the Court. The fixed deposit was set to mature on a specific date.

Compoundability of the Offence:
The respondent expressed willingness to compound the matter by withdrawing the amount upon maturity of the fixed deposit. The parties mutually desired to compound the sentence. Considering the compoundability of the offence u/s 138 of NIA, 1881, the Court found no reason not to compound the sentence. Consequently, the Court set aside the impugned order, acquitted the appellant, and instructed the respondent to provide bank account details for transferring the amount along with accrued interest.

Acquittal and Transfer of Amount:
The Supreme Court allowed the appeal, acquitted the appellant, and directed the Registry to transfer the amount in the appellant's bank account upon maturity of the fixed deposit. Pending applications were disposed of accordingly.