2023 (10) TMI 382 - HC - Indian Laws

Conviction under Section 138 of NI Act quashed after compromise; petitioner acquitted and bail bonds discharged.

The HC quashed the conviction and sentence of the petitioner-accused under Section 138 of the NI Act, following a compromise with the complainant-Bank. ... Dishonour of Cheque - funds insufficient - compounding of offence - compromise of matter reached at - HELD THAT:- Having taken note of the fact that during the pendency of the instant petition the complainant-Bank and the petitioner-accused have compromised the matter and now the complainant-Bank does not intend to pursue the complaint under Section 138 of the NI Act and the complainant-Bank has no objection in compounding the offence, therefore, this Court sees no impediment in accepting the prayer made on behalf of the accused-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 VERSUS SAYED BABALAL H. [2010 (5) TMI 380 - SUPREME COURT], wherein the Hon'ble Apex Court has held 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 complainant-Bank and the complainant-Bank has no objection in case the judgment of conviction, dated 23.02.2022, and order of sentence, dated 25.02.2022, passed by the learned Chief Judicial Magistrate Mandi, District Mandi, H.P., and affirmed by the learned Sessions Judge, Mandi, District Mandi, H.P., are quashed and set-aside, prayer for compounding the offence can be accepted in terms of the aforesaid judgments passed by the Hon'ble Apex Court. The present matter is ordered to be compounded and the impugned judgment of conviction, judgment of conviction, and order of sentence passed by the learned Chief Judicial Magistrate Mandi, District Mandi, H.P. and affirmed by the learned Sessions Judge, Mandi, District Mandi, H.P. is quashed and set-aside - Petition disposed off. Issues:The petition under Section 397 read with Section 402 of the Code of Criminal Procedure against judgment dated 21.09.2022, passed by learned Sessions Judge Mandi, District Mandi, H.P., in Criminal Appeal No. 13 of 2022, affirming the judgment passed by learned Chief Judicial Magistrate Mandi, District Mandi, H.P., in Case No. 58 of 2016.Facts:The petitioner-accused approached State Bank of Patiala for a loan, failed to repay it, issued a dishonored cheque, and was convicted under Section 138 of the Negotiable Instruments Act by the Trial Court. The lower Appellate Court upheld the conviction, leading to the filing of the instant petition seeking acquittal.Compounding of Offence:During the pendency of the petition, an application was filed under Section 147 of the NI Act seeking to compound the offence. The complainant-Bank and the petitioner-accused compromised the matter, with the Bank no longer intending to pursue the complaint under Section 138 of the NI Act. The Branch Manager of the Bank confirmed the compromise and expressed no objection to quashing the judgment of conviction and setting aside the sentence.Legal Analysis:The Court examined the provisions of Section 147 of the NI Act and its relation to Section 320 of the CrPC, emphasizing the enabling provision for compounding offences under the NI Act. Citing relevant case law, the Court highlighted that a compromise can be accepted even after the recording of a judgment of conviction, allowing for the compounding of the offence under Section 138 of the NI Act.Decision:Considering the compromise between the parties and in line with the guidelines set by the Apex Court, the Court accepted the prayer for compounding the offence. The judgment of conviction and order of sentence were quashed and set aside, acquitting the petitioner-accused. Bail bonds were discharged, and the compounding fee was deposited as per court directions. The Registry and Trial Court were directed to release the deposited amounts in favor of the complainant-Bank. The petition was disposed of, along with any pending miscellaneous applications.