TaxTMI 
TaxTMI 
2026 (6) TMI 890
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....ding u/s 82 Cr.P.C. has been initiated against the applicant in Complaint Case No. 2941 of 2020 (Ashish Pandey Vs. Abdul Hameed), under Section 138 N.I. Act, Police Station- Kotwali Katra, District- Mirzapur. 3. It is submitted by learned counsel for applicant that there is money dispute between the parties and opposite party no.2 has filed a complaint under Section 138 of N.I. Act against the applicant. It is further submitted that since there is some dispute regarding payment of money and as such, there is a good chance of amicable settlement of dispute through compromise. 4. Learned counsel for applicant has placed reliance on a judgment of Hon'ble Apex Court in the case of Damodar S. Prabhu Vs. Sayed Babalal H., reported in 20....
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....raised by the learned Attorney General that a majority of cheque bounce cases are indeed being compromised or settled by way of compounding, albeit during the later stages of litigation thereby contributing to undue delay in justice delivery. The problem herein is with the tendency of litigants to belatedly choose compounding as a means to resolve their dispute. ......... 19. As mentioned earlier, the learned Attorney General's submission is that in the absence of statutory guidance, parties are choosing compounding as a method of last resort instead of opting for it as soon as the Magistrates take cognizance of the complaints. One explanation for such behaviour could be that the accused persons are willing to take the chance o....
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....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 per cent. of the cheque amount to be deposited as a condition for compounding with the legal services authority, or such authority as the cou....
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....he offence is largely confined to the private parties. Even though the imposition of costs by the competent court is a matter of discretion, the scale of costs has been suggested in the interest of uniformity. The competent court can of course reduce the costs with regard to the specific facts and circumstances of a case, while recording reasons in writing for such variance. Bona fide litigants should of course contest the proceedings to their logical end. Even in the past, this court has used its power to do complete justice under article 142 of the Constitution to frame guidelines in relation to the subject-matter where there was a legislative vacuum." 38. Since a very large number of cheque bouncing cases are still pending and i....