Conviction & Sentence Set Aside after Settlement: Section 138

The court set aside the conviction and sentence of the petitioner under Section 138 of the Negotiable Instrument Act following a compromise settlement between the parties. The petitioner, who had deposited a compensation amount of Rs. 1.50 lakhs in court, showed an intention to settle the matter out of court. The opposite party agreed to accept the amount, emphasizing the friendly nature of the loan transaction. In light of this settlement, the court directed the deposited amount to be remitted to the opposite party's account, discharged the petitioner's bailors, closed pending applications, and ordered the lower court records to be returned, concluding the legal proceedings.

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Issues:
Criminal revision against conviction and sentence under Section 138 of Negotiable Instrument Act, 1881. Compromise settlement between the parties.

Analysis:
The criminal revision application challenged the order confirming the conviction and sentence of the petitioner under Section 138 of the Negotiable Instrument Act. The petitioner was directed to undergo imprisonment for six months and pay a compensation amount of Rs. 1.50 lakhs to the complainant. The petitioner had deposited the compensation amount in the court's account, showing an intention to settle the matter out of court. The opposite party no.2 expressed willingness to accept the amount and set aside the conviction and sentence as part of a compromise settlement, emphasizing the friendly nature of the loan transaction.

The court considered the facts and circumstances, noting that the case arose from a friendly loan between the parties. After hearing both sides, the court found that the petitioner had issued a cheque that was dishonored, leading to legal proceedings. The petitioner's act of depositing the compensation amount and the opposite party's willingness to accept it for settlement were crucial in the court's decision. The court acknowledged the readiness of both parties to resolve the matter amicably, emphasizing the importance of restoring cordial relations between them.

In light of the settlement between the parties, the court set aside the conviction and sentence imposed on the petitioner. The deposited amount of Rs. 1.50 lakhs was directed to be remitted to the opposite party's account as per the details provided. The court disposed of the revision application, discharged the petitioner's bailors, closed pending applications, and ordered the lower court records to be sent back. The order was to be communicated to the lower court via FAX, concluding the legal proceedings in the matter.

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