Settlement reached in Section 138 case, complaint withdrawn, accused acquitted, reduced compounding fee imposed.

The complaint under Section 138 of the Negotiable Instruments Act was quashed, and the conviction/sentence judgment set aside by the court. The parties reached a settlement, reducing the agreement to writing and agreeing to installment payments. The complainant received a portion of the compensation, with a balance remaining. Both parties confirmed the settlement was voluntary. Consequently, the complainant withdrew the complaint, and the matter was compounded. The accused was acquitted of the accusations, with a reduced compounding fee of Rs.5,000 imposed instead of the standard 15% of the cheque amount. Failure to deposit the fee within four weeks would result in the revival of the convictions and sentences.

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Issues:
Quashing of complaint under Section 138 of Negotiable Instruments Act and setting aside the conviction/sentence judgment.

Analysis:
The petition was filed to quash a complaint under Section 138 of the Negotiable Instruments Act and set aside the conviction/sentence judgment passed by the learned Judicial Magistrate First Class. The petitioner was convicted and sentenced to six months of simple imprisonment and ordered to pay compensation of Rs.5,00,000 to the complainant in a specific case. Both the accused and the complainant were present in person, identified by their counsels, and their statements were recorded under oath.

The complainant stated that the matter had been amicably settled between the parties, reducing the agreement to writing and agreeing to payment in installments. The complainant had received a significant portion of the compensation amount, with a balance remaining. The accused endorsed the complainant's statement as true and correct, accepting liability in case of dishonored cheques. Both parties confirmed the settlement was voluntary and without coercion.

As a result of the compromise, the complainant was allowed to withdraw the complaint, and the matter was compounded. The complaint related to the dishonor of a cheque under Section 138 of the Negotiable Instrument Act was treated as withdrawn, and the convictions and sentences were quashed, acquitting the accused of the accusations.

The petitioner requested a reduction in the compounding fee, citing financial constraints. Referring to legal precedents, the court agreed to impose a lesser compounding fee of Rs.5,000 instead of the standard 15% of the cheque amount. The petitioner was directed to deposit the reduced fee with the H.P. State Legal Services Authority within four weeks, with non-compliance resulting in the automatic revival of the convictions and sentences.

The court disposed of the petition and any pending applications accordingly. The parties were permitted to present a copy of the order downloaded from the High Court website for compliance purposes, with the judgment to be sent to the H.P. State Legal Services Authority for further action.

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