2021 (12) TMI 894 - HC - Indian Laws

High Court Allows Compounding of Offense, Acquits Accused

Sh Madan Lal Versus LIC Housing Finance Limited

The High Court accepted the prayer for compounding the offense under Section 147 of the Negotiable Instruments Act, quashing the convictions, acquitting ... Dishonor of Cheque - insufficiency of funds - compounding of offences - section 147 of NI Act - HELD THAT:- Since entire amount of compensation awarded by the court below has been paid or agreed to be paid by the petitioner to the complainant, this Court sees no impediment in accepting the prayer made on behalf of the petitioner for compounding of offence while exercising power under Section 147 of the Act as well as in terms of guidelines issued by the Hon'ble Apex Court in Damodar S. Prabhu V. Sayed Babalal H. [2010 (5) TMI 380 - SUPREME COURT], wherein it has been categorically held that court, while exercising power under Section 147 of the Act, can proceed to compound the offence even after recording of conviction by the courts below. Present matter is ordered to be compounded and impugned judgments of conviction and sentence dated 19.2.2014 and 16/30.12.2011, passed by the courts below are quashed and set-aside and the petitioner-accused is acquitted of the charge framed against him under Section 138 of the Act - Petition disposed off. Issues:Challenge to judgment affirming conviction under Section 138 of the Negotiable Instruments Act.Analysis:The case involved a criminal revision petition challenging a judgment affirming conviction under Section 138 of the Negotiable Instruments Act. The respondent-complainant alleged that the accused issued a cheque that was dishonored due to insufficient funds, leading to legal proceedings. The trial court found the accused guilty and sentenced him to imprisonment and compensation. The accused appealed to the Sessions Judge, but the appeal was dismissed, upholding the conviction. Subsequently, the accused approached the High Court seeking acquittal. During the proceedings, both parties informed the court about an amicable settlement, where a sum of money was agreed to be paid to the complainant. The counsel for both parties confirmed the compromise, and the court was requested to compound the offense and acquit the accused. As the compensation amount was paid or agreed to be paid, the High Court accepted the prayer for compounding the offense under Section 147 of the Act, following the guidelines set by the Supreme Court. Consequently, the High Court quashed the judgments of conviction, acquitted the accused, and ordered the release of the deposited amount to the complainant. The petition was disposed of accordingly, with the interim order vacated and bail bonds discharged.