Court allows compounding of offence under Section 138 NI Act due to pandemic impact. Waives costs for petitioner.

The court allowed the compounding of the offence under Section 138 of the Negotiable Instruments Act, 1881. The petitioner, facing financial difficulties exacerbated by the Covid-19 pandemic, had paid a substantial portion of the cheque amount and offered to promptly settle the remaining balance. Despite the usual practice of imposing costs, the court waived them considering the petitioner's circumstances. Upon full payment of dues, the court set aside previous judgments, leading to the petitioner's immediate release.

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Issues:
1. Conviction under Section 138 of the Negotiable Instruments Act, 1881 for dishonour of a cheque.
2. Request for compounding the offence.
3. Consideration of costs in compounding the offence.
4. Clearance of dues and release of the petitioner.

Analysis:

Issue 1: The petitioner was convicted under Section 138 of the Negotiable Instruments Act, 1881 for dishonour of a cheque amounting to Rs. 1,63,700. The courts had recorded concurrent findings, indicating no substantial grounds for interference.

Issue 2: The petitioner, a driver residing in a remote area of Goa, faced financial constraints due to the Covid-19 pandemic, preventing timely payment to the respondent Society. However, the petitioner had paid a significant portion of the cheque amount, with only Rs. 45,000 remaining due. The petitioner sought to compound the offence, offering to pay the balance amount promptly.

Issue 3: The respondent's counsel argued for imposing costs on the petitioner as a customary practice in such cases, citing legal precedent. Despite the general principle, the court found the petitioner's efforts to clear dues commendable, considering the petitioner's background and the impact of the pandemic on his employment. Consequently, the court excused the petitioner from paying costs, given the circumstances of the case.

Issue 4: With the petitioner clearing the outstanding dues related to the dishonoured cheque, the court accepted the plea for compounding the offence. As a result, the impugned judgments and orders were set aside, leading to the petitioner's immediate release from custody. The revision application was disposed of accordingly, with the petitioner's bail application becoming irrelevant post-compounding.

In conclusion, the court granted permission for compounding the offences based on the petitioner's efforts to settle the dues, leading to the setting aside of previous judgments and the petitioner's release from custody.

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