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TMI Blog2021 (11) TMI 294X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 1,000/- would be in the interest of justice - the said cost should be deposited in High Court Bar Association Advocate s Welfare Fund. In course of hearing when this amount was suggested to the counsel for the petitioner he has submitted that he will deposit the said amount and file the receipt in course of the day and has in fact filed the receipt. That as the matter has been settled between the parties and the compensation amount has been paid to the complainant Opp party No.2, in full and final settlement of the dispute, the compounding of the offence under Section -138 of the N.I.Act is allowed and the conviction of the petitioner under Section 138 of N.I. Act and the sentence to undergo simple imprisonment for one year and to pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been confirmed by the learned Sessions Judge, Angul. 3. Mr. A.K. Nath, learned counsel for the petitioner submits that the petitioner is in custody since more than two months. He further submits that the petitioner is a poor man but with great difficulty has paid the entire compensation amount to the complainant (Opp. Party No.2) and the dispute has been settled between the parties and the parties had filed a compromise petition before the learned J.M.F.C. Angul, but the same was rejected. He further submits that as the offence under Section 138 of the N.I. Act is compoundable and the compounding can be done at any stage, the criminal revision may be allowed and disposed of in terms of the settlement and the conviction and sentence of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... true that the offence under Section 138 of the N.I. Act is compoundable and the conviction imposed by the Courts can be set aside at any stage on basis of such compounding, but in view of the submission of learned Attorney General of India in the case of Damodar S Prabhu ( supra) that the requirement of deposit of the costs will act as a deterrent for delayed composition, since at present, free and easy compounding of offences at any stage, however belated, gives an incentive to the drawer of the cheque to delay settling the cases for years. An application for compounding made after several years not only results in the system being burdened but the complainant is also deprived of effective justice , the Hon ble Supreme Court has framed c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relating to compounding of offences. The various decisions cited by Mr. Rohtagi on this issue does not add to the above position. 12. It is true that the application under Section 147 of the Negotiable Instruments Act was made by the parties after the proceedings had been concluded before the Appellate Forum. However, Section 147 of the aforesaid Act does not bar the parties from compounding an offence under Section 138 even at the appellate stage of the proceedings. Accordingly, we find no reason to reject the application under Section 147 of the aforesaid Act even in a proceeding under Article 136 of the Constitution. In the case of V.I.Uthuppan (supra) the parties arrived at a settlement when the appeal was pending before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated, gives an incentive to the drawer of the cheque to delay settling the cases for years. An application for compounding made after several years not only results in the system being burdened but the complainant is also deprived of effective justice. In view of this submission, we direct that the following guidelines be followed:- 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 the court without imposing any costs o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the specific facts and circumstances of a case, while recording reasons in writing for such variance 9. In the present case the parties have settled the matter after the judgment passed by the Appellate Court. Hence as per the guidelines framed by the Hon ble Apex Court, the composition should be allowed by imposing cost of 15% of the dishonoured cheque value. But considering that fact that the petitioner has been taken into custody and has spent more than two months in judicial custody in the meanwhile, I feel imposition of cost of ₹ 1,000/- would be in the interest of justice. I am also of the view that the said cost should be deposited in High Court Bar Association Advocate s Welfare Fund. In course of hearing when this amou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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