2018 (11) TMI 1397

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....gistrate, may, for reasons to be recorded by him, stop the proceedings at any stage without pronouncing any judgment and where such stoppage of proceedings is made after the evidence of the principal witnesses has been recorded, pronounce a judgment of acquittal, and in any other case, release the accused, and such release shall have the effect of discharge." 4. The plain reading of the aforesaid section reveals that the same can be attracted only in cases filed other than upon complaint, meaning thereby, if prosecution is launched by the State then this Section will be attracted. However, where a complaint is filed by a private party e.g. complaint under Section 138 of the N.I. Act, then Section 258 Cr.P.C. would not apply and accused cannot be discharged under the aforesaid Section, save and except, to the extent as spelt out by the Hon'ble Supreme Court in its recent decision in Meters and Instruments Private Limited and another vs. Kanchan Mehta, 2018 (1) SCC 560, wherein it was held as under:- 11. While it is true that in Subramanium Sethuraman versus State of Maharashtra, 2004 13 SCC 324, this Court observed that once the plea of the accused is recorded under Section 252 o....

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....ction 258 Cr.P.C. will apply and the Court can close the proceedings and discharge the accused on satisfaction that the cheque amount with assessed costs and interest is paid and if there is no reason to proceed with the punitive aspect. 18.2 The object of the provision being primarily compensatory, punitive element being mainly with the object of enforcing the compensatory element, compounding at the initial stage has to be encouraged but is not debarred at later stage subject to appropriate compensation as may be found acceptable to the parties or the Court. 18.3 Though compounding requires consent of both parties, even in absence of such consent, the Court, in the interests of justice, on being satisfied that the complainant has been duly compensated, can in its discretion close the proceedings and discharge the accused. 18.4 Procedure for trial of cases under Chapter XVII of the Act has normally to be summary. The discretion of the Magistrate under second proviso to Section 143, to hold that it was undesirable to try the case summarily as sentence of more than one year may have to be passed, is to be exercised after considering the further fact that apart from the sentenc....

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....as not on the ground that the cheque amount together with interest and cost as assessed by the Court had been paid, therefore, the Court should have closed the proceedings in exercise of power under Section 143 of the Act, read with Section 258 Cr.P.C. Rather the allegations in the application were that the complaint itself was not maintainable as there was no legal enforceable liability and there was already a civil suit pending inter se the parties regarding the liability of the complainant or accused person contingently fixed upon the partnership deed on the basis of which the cheque amount of Rs. 21 lacs, which is the subject matter of the complaint, had been issued. 9. It would be noticed that the facts before the Hon'ble Supreme Court in Meters and Instruments' case (supra) were that the cheque amount with interest and cost had been paid and it was in those circumstances that the provisions of Section 258 of the Code were held to be applicable so as to entitle and enable the Court to close the proceedings and discharge the accused. 10. It is more than settled that it is only the ratio of the judgment which has binding effect on the court subordinate to the court that passed....

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....een the parties to it but it is the abstract ratio decidendi, as ascertained on a consideration of the judgment in relation to the subject matter of the decision, which alone has the force of law and which when it is clear it is not part of a tribunal's duty to spell out with difficulty a ratio decidendi in order to bound by it, and it is always dangerous to take one or two observations out of a long judgment and treat them as if they gave the ratio decidendi of the case. If more reasons than one are given by a tribunal for its judgment, all are taken as forming the ratio decidendi." (Emphasis added) 14. In State of Orissa v. Mohd. Illiyas (2006) 1 SCC 275, it has been stated by the Hon'ble Supreme Court thus:- "12......According to the well-settled theory of precedents, every decision contains three basic postulates: (i) findings of material facts, direct and inferential. An inferential finding of facts is the inference which the Judge draws from the direct, or perceptible facts; (ii) statements of the principles of law applicable to the legal problems disclosed by the facts; and (iii) judgment based on the combined effect of the above. A decision is an authority for what i....