TaxTMI 
TaxTMI 
2023 (7) TMI 710
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....s convicted and sentenced to undergo rigorous imprisonment for one year for the offence under Section 138 of the Negotiable Instruments Act, 1881 (for short 'the Act'). 2. The facts relevant as narrated in the complaint filed under Section 138 of the Act by the complainant-respondent are that the accused-petitioner had taken a friendly loan from the complainant and in order to discharge her liability, she had issued a cheque bearing No.115480 dated 17.09.2013, for a sum of Rs.2,70,000/- in her name. When the said cheque was presented for encashment by the complainant in her bank, it was dishonoured by the banker of the accused vide memo dated 18.09.2013 with the remarks "opening balance insufficient". The complainant sent a legal notice ....
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....at in pursuance of order dated 10.03.2019, both the parties had appeared before the Mediator at Ludhiana for settling the matter, where with the assistance of the Mediator, they have arrived at an amicable settlement and resolved the dispute. In this regard a written agreement of settlement dated 19.04.2019 has been executed, copy of which is produced and taken on record as Mark 'A'. Learned counsel prays that the compounding fee be waived off, as the petitioner is a poor widow lady, suffering from heart ailment, having four children including three daughters, one of whom is also a widow and residing with the petitioner and one is unmarried. They all are residing in a rented accommodation. The petitioner has with great difficulty managed to....
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.... the creditors. Dishonor of cheque causes incalculable loss, injury and inconvenience to the Vide the Banking, Public Financial Institutions and Negotiable Instruments Laws (Amendment) Act, 1988 payee and credibility of business transactions suffers a setback. At the same time, it was also noted that nature of offence under Section 138 primarily related to a civil wrong and the 2002 amendment specifically made it compoundable." 11. This is a very clear case of the parties entering into an agreement and compounding the offence to save themselves from the process of litigation. When such a step has been taken by the parties, and the law very clearly allows them to do the same, the High Court then cannot override such compounding and impose....
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....ohammed & Anr., 2009 (14) SCALE 262, wherein it was held as under:- "11. As far as the non-obstante clause included in Section 147 of the 1881 Act is concerned, the 1881 Act being a special statute, the provisions of Section 147 will have an overriding effect over the provisions of the Code relating to compounding of offences. 12. It is true that the application under Section 147 of the Negotiable Instruments Act was made by the parties after the proceedings had been concluded before the Appellate Forum. However, Section 147 of the aforesaid Act does not bar the parties from compounding an offence under Section 138 even at the appellate stage of the proceedings. Accordingly, we find no reason to reject the application unde....