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

Tajinder Singh Versus State Bank of Patiala

Tajinder Singh Versus State Bank of Patiala - TMI 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.