Offense u/s 138 N.I. Act Compounded: Acquittal and Custody Release Following Settlement Agreement.

The court permitted the compounding of the offence under Section 138 of the N.I. Act following a settlement between the parties, setting aside previous judgments and orders. The petitioner was acquitted, and the court waived the imposition of costs due to the settlement, releasing the petitioner from custody. The case was resolved in line with the settlement and relevant legal principles.

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Issues:
- Appeal against conviction and sentence under Section 138 of the Negotiable Instruments Act, 1881
- Compromise between parties during the pendency of the petition
- Request for compounding the offence under Section 138 N.I. Act
- Imposition of costs in terms of the judgment in Damodar S. Prabhu's case
- Waiver of costs due to settlement between parties
- Legal principles regarding waiver/reduction of costs in criminal cases

Analysis:
The judgment pertains to an appeal against conviction and sentence under Section 138 of the Negotiable Instruments Act, 1881. The petitioner was convicted and sentenced by the Judicial Magistrate Ist Class, Panchkula, with a sentence of imprisonment for one year and a fine to be paid as compensation. The appeal against this judgment was dismissed by the Additional Sessions Judge, Panchkula. Subsequently, a compromise was reached between the parties during the pendency of the petition, where the petitioner agreed to repay the entire amount to the complainant in installments. A petition was filed for compounding the offence in view of this settlement, which was not disputed by the respondent's counsel.

Regarding the imposition of costs in terms of the judgment in Damodar S. Prabhu's case, the petitioner argued that due to the settlement and exhaustion of resources to pay the settlement amount, the costs should be waived off. The respondent's counsel did not object to this request. The court referred to legal principles established in previous judgments, including the need for parties to make a plausible case for the waiver or reduction of costs. The court also considered the specific circumstances of the case, where the complainant accepted the settled amount and was willing to forego the costs.

Based on the settlement between the parties, the court granted permission to compound the offence under Section 138 N.I. Act. The impugned judgments and orders were set aside, and the petitioner was acquitted of the accusations. The court deviated from the conditions laid down in previous judgments regarding the imposition of costs and released the petitioner from custody. The case was disposed of in accordance with the settlement and legal principles discussed during the proceedings.

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