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2020 (11) TMI 427

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..... fore the trial Court, the learned trial Court has got a counsel engaged for the applicant from the Legal Aid who contested the case before the trial Court but this fact was also not within the knowledge of the applicant till the judgment was rendered by the trial Court. It was only when the police authority arrested the applicant it was came to the knowledge of the applicant that he was arrested in the case under Section 138 of the N.I. Act and immediately thereafter they applied for obtaining the copy of the judgment on 12.10.2020 and thereafter on 14.10.2020 the revision petition was got drafted and filed before the court on 15.10.2020. The delay occurred in filing the criminal revision is based on bonafides and there was no malafide on the part of the applicant as due to the fault on the part of the counsel he could not appear before the trial Court and as the information in this regard was not available with the applicant, therefore, he could not arrange for counsel there. Considering the reasons assigned as aforesaid for the delay in the application, the same is allowed and the delay of 27 months caused in filing the criminal revision is hereby condoned. With the consent of .....

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..... he offence. It is argued that the law regarding compounding of offences under the N.I. Act is very clear and is no more res integra and the offences under the N.I. Act can be compounded even at any stage of the proceedings. He has relied upon the judgments passed in the cases of O.P. Dholakia vs. State of Haryana & Anr. reported in (2000) 1 SCC 762, K.M.Ibrahim vs. K.P.Mohammad and Another, reported in (2010) 1 SCC 798, and Damodar S. Prabhu Versus Sayed Babalal H., reported in (2010) 5 SCC 663 and submits that in terms of the aforesaid law laid down by the Hon'ble Supreme Court the parties may be permitted to compound the offence and the conviction of the petitioner be set aside. Counsel appearing for the respondent has categorically made a statement before the Court that the entire amount as directed by the learned trial Court as well as the appellate Court has been paid to him and he does not want to continue with the proceedings. It is contended that the matter has already been settled between the parties, therefore, he is having no objection if the conviction is set aside. Heard the learned counsel for the parties and perused the record. From the perusal of the pleadin .....

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..... aside. In Vinay Devanna Nayak, the issue was raised and after taking note of the provisions of Section 320 Cr.P.C., this Court held that since the matter had been compromised between the parties and payments had been made in full and final settlement of the dues of the bank, the appeal deserved to be allowed and the appellant was entitled to acquittal. Consequently, the order of conviction and sentence recorded by all the courts was set aside and the appellant was acquitted of the charge leveled against him. 10.The object of Section 320 Cr.P.C., which would not in the strict sense of the term apply to a proceeding under the Negotiable Instruments Act, 1881, gives the parties to the proceedings an opportunity to compound offences mentioned in the table contained in the said section, with or without the leave of the court, and also vests the court with jurisdiction to allow such compromise. By virtue of Sub-Section (8), the Legislature has taken one step further in vesting jurisdiction in the Court to also acquit the accused/convict of the offence on the same being allowed to be compounded. 11. Inasmuch as, it is with a similar object in mind that Section 147 has been inserted .....

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..... n part of the judicial system. This is clearly a situation that is causing some concern, since Section 147 of the Act does not prescribe as to what stage is appropriate for compounding the offence and whether the same can be done at the instance of the complainant or with the leave of the court. 7.The learned Attorney General stressed on the importance of using compounding as an expedient method to hasten the disposal of cases. In this regard, the learned Attorney General has proposed that this Court should frame some guidelines to disincentivise litigants from seeking the compounding of the offence at an unduly late stage of litigation. In other words, judicial directions have been sought to nudge litigants in cheque bounce cases to opt for compounding during the early stages of litigation, thereby bringing down the arrears. 8. Before examining the guidelines proposed by the learned Attorney General, it would be useful to clarify the position relating to the compounding of offences under the Negotiable Instruments Act, 1881. Even before the insertion of Section 147 in the Act (by way of an amendment in 2002) some High Courts had permitted the compounding of the offence conte .....

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..... in a time bound manner in view of the procedure contained in the Act."(emphasis supplied) In order to address the deficiencies referred to above, Section 10 of the 2002 amendment inserted Sections 143, 144, 145, 146 and 147 into the Act, which deal with aspects such as the power of the Court to try cases summarily (Section 143), Mode of service of summons (Section 144), Evidence on affidavit (Section 145), Bank's slip to be considered as prima facie evidence of certain facts (Section 146) and Offences under the Act to be compoundable (Section 147)." The Hon'ble Supreme Court in the case of Damodar S. Prabhu (supra) has framed guidelines with respect to granting permission for compounding of offences at various stages. "The Guidelines" in the form of directions given in the aforesaid judgment read as under: "THE GUIDELINES (i) In the circumstances, it is proposed as follows: (a) That directions can be given that the Writ of Summons be suitably modified making it clear to the accused that he could make an application for compounding of the offences at the first or second hearing of the case and that if such an application is made, compounding may be allowed by t .....

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