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Issues: Whether, in a civil suit for recovery on dishonoured cheques, the amount paid or recovered as compensation in a parallel criminal proceeding under Section 357 of the Code of Criminal Procedure, 1973 must be taken into account while awarding compensation in the civil suit.
Analysis: A complaint under Sections 138 and 142 of the Negotiable Instruments Act, 1881 and a civil suit for recovery on the same underlying transaction were both maintainable. However, Section 357(5) of the Code of Criminal Procedure, 1973 casts a duty on the civil court, when awarding compensation in a subsequent civil suit relating to the same matter, to take into account any sum paid or recovered as compensation under that section. The appellate court, being a continuation of the suit, was equally bound to consider that the appellants had already deposited amounts in the criminal and civil proceedings. The omission to account for the compensation already paid could therefore be corrected in appeal, and the decree required modification and remand for recalculation.
Conclusion: The amount deposited as compensation in the criminal proceeding had to be adjusted in the civil decree, and the decree was liable to be modified accordingly.
Ratio Decidendi: In a subsequent civil suit relating to the same matter, any compensation already paid or recovered under Section 357 of the Code of Criminal Procedure, 1973 must be taken into account by the civil court and, where necessary, corrected by the appellate court.