TaxTMI 
TaxTMI 
2021 (6) TMI 549
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....dated 18.11.2011 for a sum of Rs. 2,00,000/- issued by the revisionist was dishonoured. The opposite party no.2 filed a complaint case before the II Chief Judicial Magistrate, Varanasi, under Section 138 of the Negotiable Instruments Act. The proceedings of the case, ultimately resulted in order of conviction. Against the order of conviction an appeal was preferred and the appellate Court dismissed the appeal of the revisionist and confirmed the judgment. 4. Learned counsel for the revisionist submits that now the rival parties have sorted out their dispute and have arrived at a compromise. In this regard, a compromise deed dated 13.11.2020 has been annexed as Annexure 2 to the affidavit in support of revision. 5. Learned counsel for the opposite party no.2 has filed a short counter affidavit and stated that he had received the entire cheque amount of Rs. 2,00,000/- and does not want to continue the criminal proceedings and the matter may be decided in terms of the compromise deed. 6. Heard Sri Vivek Chaubey, learned counsel for the applicant-revisionist, Sri Santosh Kumar Yadav, learned counsel for opposite party no.2, Sri Nikhil Chiturvedi, learned AGA for the State and ....
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....t aside. In the case of Vinay Devanna Nayak (supra), the issue was raised and after taking note of the provisions of Section 320 Cr.P.C., this Court held that since the matter had been compromised between the parties and payments had been made in full and final settlement of the dues of the Bank, the appeal deserved to be allowed and the appellant was entitled to acquittal. Consequently, the order of conviction and sentence recorded by all the courts were set aside and the appellant was acquitted of the charge leveled against him. 10. The object of Section 320 Cr.P.C., which would not in the strict sense of the term apply to a proceeding under the Negotiable Instruments Act, 1881, gives the parties to the proceedings an opportunity to compound offences mentioned in the table contained in the said section, with or without the leave of the court, and also vests the court with jurisdiction to allow such compromise. By virtue of Sub-Section (8), the Legislature has taken one step further in vesting jurisdiction in the Court to also acquit the accused/convict of the offence on the same being allowed to be compounded. 11. Inasmuch as, it is with a similar object in mind....
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....ngaging in protracted litigation before several forums, thereby causing undue delay, expenditure and strain on part of the judicial system. This is clearly a situation that is causing some concern, since Section 147 of the Act does not prescribe as to what stage is appropriate for compounding the offence and whether the same can be done at the instance of the complainant or with the leave of the court. 7. The learned Attorney General stressed on the importance of using compounding as an expedient method to hasten the disposal of cases. In this regard, the learned Attorney General has proposed that this Court should frame some guidelines to disincentivise litigants from seeking the compounding of the offence at an unduly late stage of litigation. In other words, judicial directions have been sought to nudge litigants in cheque bounce cases to opt for compounding during the early stages of litigation, thereby bringing down the arrears. 8. Before examining the guidelines proposed by the learned Attorney General, it would be useful to clarify the position relating to the compounding of offences under the Negotiable Instruments Act, 1881. Even before the insertion of S....
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.... 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. (c) Similarly, if the application for compounding is made before the Sessions Court or a High Court in revision or appeal, such compounding may be allowed on the condition that the accused pays 15% of the cheque amount by way of costs. (d) Finally, if the application for compounding is made before the Supreme Court, the figure would increase to 20% of the cheque amount." 11. Recently, in the case of Meters and Instruments Private Limited and another vs. Kanchan Mehta reported in (2018) 1 SCC 560, the Hon'ble Supreme Court observed as follows : "18. From the above discussion following aspects emerge: 18.1) Offence under Section 138 of the Act is primarily a civil wrong. Burden of proo....
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....except where exercise of power under second proviso to Section 143 becomes necessary, where sentence of one year may have to be awarded and compensation under Section 357(3) is considered inadequate, having regard to the amount of the cheque, the financial capacity and the conduct of the accused or any other circumstances. 19. In view of the above, we hold that where the cheque amount with interest and cost as assessed by the Court is paid by a specified date, the Court is entitled to close the proceedings in exercise of its powers under Section 143 of the Act read with Section 258 Cr.P.C. As already observed, normal rule for trial of cases under Chapter XVII of the Act is to follow the summary procedure and summons trial procedure can be followed where sentence exceeding one year may be necessary taking into account the fact that compensation under Section 357 (3) Cr.P.C. with sentence of less than one year will not be adequate, having regard to the amount of cheque, conduct of the accused and other circumstances." 12. Following the aforesaid propositions of law and taking into account the fact that the parties have agreed to end the proceedings by way of compromise an....