2014 (1) TMI 788

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....endly loan which, when presented to the bank were dishonoured for want of funds and the respondent failed to make payment even after service of legal notice upon her. Vide impugned judgment dated 27.1.2010, the learned Metropolitan Magistrate acquitted the respondent. Being aggrieved, the complainant has filed this appeal. 2. Vide order dated 21.9.2010, my learned predecessor held that the respondent had committed offence punishable under Section 138 of the N.I. Act and, therefore, set aside the impugned judgment. The matter was listed for hearing the respondent on the quantum of sentence on 22.9.2010. Thereafter, the parties to the appeal compromised the matter and in view of the said compromise, hearing on the quantum of sentence was d....

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....ing such an offence , no such permission is necessary and the parties therefore can enter into a compromise outside the Court and then get the same recorded in the Court at any point of time before the sentence is fully executed. 6. In Damodar S.Prabhu v. Sayed Babalal H. AIR 2010 Supreme Court 1907, the parties before the Apex Court arrived at a settlement during the pendency of the appeal before the said Court and sought compounding of the offence as contemplated under Section 147 of the N.I. Act. Pursuant to the said settlement, the appellant/accused also sought setting aside of his conviction on the basis of the settlement. The Apex Court thereupon allowed the compounding of the offence and set aside the conviction of the appellant b....

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....hat directions can be given that the Writ of Summons be suitably modified making it clear to the accused that he could make an application for compounding of the offences at the first or second hearing of the case and that if such an application is made, compounding may be allowed by the court without imposing any costs on the accused. (b) If the accused does not make an application for compounding as aforesaid, then if an application for compounding is made before the Magistrate at a subsequent stage, compounding can be allowed subject to the condition that the accused will be required to pay 10% of the cheque amount to be deposited as a condition for compounding with the Legal Services Authority, or such authority as the Court deems fit. ....