2023 (3) TMI 685 - HC - Indian Laws

Court allows compounding of offence under Section 138 of Negotiable Instruments Act, acquits accused

Suresh Kumar Versus Maheshwar Sharma

The court allowed for the compounding of the offence under Section 138 of the Negotiable Instruments Act following a compromise between the parties. The ... Dishonor of Cheque - insufficient funds - compounding of offences - Section 147 of NI Act - HELD THAT:- Having taken note of the fact that entire amount of compensation stands paid to the respondent-complainant and the respondent-complainant has no objection in compounding the offence, this Court sees no impediment in accepting the prayer made on behalf of the petitioneraccused 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 VERSUS SAYED BABALAL H. [2010 (5) TMI 380 - SUPREME COURT], wherein the Hon’ble Apex Court has held that since Section 147 was inserted by way of an amendment to a special law, the same will override the effect of Section 320(9) of the CrPC, especially keeping in mind that Section 147 carries a non obstante clause.” In K. SUBRAMANIAN VERSUS R. RAJATHI REP. BY P.O.A.P. KALIAPPAN [2009 (11) TMI 1013 - SUPREME COURT], it has been held by the Hon’ble Apex Court that in view of the provisions contained in Section 147 of the Act read with Section 320 of Cr.P.C., compromise arrived at can be accepted even after recording of the judgment of conviction. Since in the instant case, the petitioner-accused after being convicted under Section 138 of the Act, has compromised the matter with the respondent-complainant vide Compromise Deed, annexed with the petition and in terms thereof, he has already paid the entire amount of compensation, prayer for compounding the offence can be accepted in terms of the aforesaid judgments passed by the Hon’ble Apex Court - in view of the detailed discussion made hereinabove as well as law laid down by the Hon’ble Apex Court, the parties are permitted to get the matter compounded in light of the compromise arrived inter se them. The present matter is ordered to be compounded and the impugned judgment of conviction dated 22.04.2022 and order of sentence dated 25.04.2022, passed against the petitioner-accused by the learned Chief Judicial Magistrate, Lahaul-Spiti at Kullu, H.P. and affirmed by the learned Sessions Judge, Kullu, District Kullu, H.P., vide judgment dated 12.12.2022, 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:Petition filed under Section 397(1) read with Section 401 of the Code of Criminal Procedure against judgment convicting the accused under Section 138 of the Negotiable Instruments Act; Compromise between parties leading to a prayer for setting aside the conviction and sentence; Application of Section 147 of the Act for compounding the offence.Analysis:The petitioner, accused in a case under Section 138 of the Negotiable Instruments Act, filed a petition under Section 397(1) read with Section 401 of the Code of Criminal Procedure against the judgment of conviction. The accused had issued a dishonored cheque to the complainant, leading to legal proceedings. The complainant and the accused entered into a compromise, with the accused paying the entire compensation amount. The complainant expressed no objection to quashing the conviction and sentence. The court noted the payment and the compromise, allowing for the compounding of the offence.The court referred to Section 147 of the Negotiable Instruments Act, which makes every offence under the Act compoundable. It clarified that the compounding of offences under this Act is controlled by Section 147 and not Section 320 of the Code of Criminal Procedure. Section 147 is an enabling provision allowing for compounding of offences under the Act, overriding the general rule of Section 320(9) of the CrPC. The court cited legal precedents to support the acceptance of compromises even after the recording of a judgment of conviction.In light of the compromise between the parties and the payment of compensation by the accused, the court accepted the prayer for compounding the offence. The court quashed the judgment of conviction and order of sentence, acquitting the accused of the charge under Section 138 of the Act. The bail bonds, if any, were discharged, and the petition was disposed of accordingly.Therefore, the court, following the legal provisions and precedents, allowed for the compounding of the offence based on the compromise between the parties, leading to the setting aside of the conviction and sentence imposed on the accused under Section 138 of the Negotiable Instruments Act.