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of <h1>HC allows compounding of Section 138 NI Act offence, overriding CrPC Section 320(9) limitations</h1> <h3>Alpesh Narendra Shah and Another Versus Manoj Agarwal</h3> Alpesh Narendra Shah and Another Versus Manoj Agarwal - TMI Issues:The issues involved in the judgment are the compounding of the offence under Section 138 of the Negotiable Instruments Act, 1881, and the validity of the compromise agreement between the parties.Compounding of Offence under Section 138 of the NI Act:The joint application filed by the Petitioners and Respondent under Section 147 of the NI Act sought permission to compound the offence. The Compromise Deed submitted before the Court indicated that the matter had been settled between the parties. The Learned Senior Counsel for the Petitioners argued that all offences under Section 147 of the NI Act are compoundable at any stage of the proceedings, citing legal precedent. The Learned Counsel for the Respondent concurred with this view, referencing a Supreme Court case that allowed compounding of offences even by the Sessions Court or the High Court. The Court accepted the compromise and acquitted the Petitioners of the offence under Section 138 of the NI Act, setting aside the previous conviction.Background of the Dispute and Legal Proceedings:The genesis of the dispute was a Complaint filed by the Respondent under Section 138 of the NI Act, alleging dishonor of a cheque due to insufficient funds. The Petitioners were convicted by the Magisterial Court and later by the Appellate Court, leading to the filing of the Revision Petition before the High Court. The Supreme Court's interpretation of Section 147 of the NI Act was crucial in allowing the compounding of the offence under Section 138, emphasizing the special nature of the Act and its non obstante clause overriding general provisions of the Code of Criminal Procedure.Resolution and Disposal of Applications:The Court, considering the legal principles laid down by the Supreme Court, accepted the compromise petition and allowed the compounding of the offence under Section 138 of the NI Act. The Petitioners were acquitted, and subsequent applications seeking suspension of orders and withdrawal of deposited amounts were disposed of accordingly. The Criminal Revision Petition was also disposed of in light of the compromise agreement and the legal provisions allowing for compounding of the offence at any stage of the proceedings.
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