1. Conviction under Section 138 of the Negotiable Instruments Act — Subsequent compromise between the petitioner and the complainant. (Para 2 )
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1999 Supreme(SC) 1329
SUPREME COURT OF INDIA
G.B.Pattanaik : U.C.Banerjee
O.P.Dholakia
Versus
State Of Haryana
Case No. : 2964 of 1999
Date of Decision : 11/15/99
Advocates Appeared: Chaudhary Arunabh : Chawla Navin : Mehta Rajiv : Singh Mahabir
The court may allow the compounding of an offense under Section 138 of the Negotiable Instruments Act and annul the resulting conviction and sentence if the parties have reached a compromise, even if the conviction was previously upheld by multiple lower forums.
Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 - Compounding of offense - Conviction and sentence upheld by three forums - Parties entered into a compromise - Complainant received entire money and has no objection to setting aside conviction - Nature of offense and existence of compromise make it appropriate to grant permission to compound - Conviction and sentence stand annulled. (Paras 2, 3)
Facts of the case:
The petitioner entered into a compromise with the complainant. The complainant stated that the entire amount had been received and expressed no objection to the setting aside of the conviction recorded under Section 138 of the Negotiable Instruments Act.
Findings of Court:
Taking into consideration the nature of the offense and the fact that the parties had already entered into a compromise, the court deemed it appropriate to grant permission to compound the offense.
Issues: Whether the court should interfere with a conviction and sentence upheld by three lower forums when the parties have subsequently entered into a compromise.
Ratio Decidendi: Given the nature of the offense under Section 138 of the Negotiable Instruments Act and the settlement between the parties, the court may allow compounding and consequently annul the conviction and sentence, notwithstanding the fact that the conviction was upheld by multiple lower forums.
Result: Conviction and sentence annulled. Special leave petition disposed of.
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Table of Contents
2. State contends that interference is unwarranted as the conviction was upheld by three forums and the compromise occurred at a late stage. (Para 3 )
3. The court observed that the nature of the offence and the compromise between the parties justify granting permission to compound. (Para 3 )
4. Convictions under Section 138 of the Negotiable Instruments Act may be annulled upon the compounding of the offence following a compromise between parties. (Para 3 )
5. Permission granted to compound the offence; conviction and sentence under Section 138 of the Negotiable Instruments Act annulled. (Para 3 )
6. Can a conviction under Section 138 of the Negotiable Instruments Act be set aside upon a compromise between the parties?
Yes, the court may grant permission to compound the offence and annul the conviction and sentence, considering the nature of the offence and the fact that the complainant and accused have entered into a compromise. (Para 3 )
7. Does the affirmation of a conviction by multiple lower forums prevent the court from allowing a late-stage compromise?
Not necessarily; while such a history is a relevant consideration, the court may still exercise indulgence and allow compounding based on the specific facts and the nature of the offence. (Para 3 )
(1) HEARD the learned counsel for the parties.
(2) IT appears that the petitioner has already entered into a compromise with the complainant and the complainant appearing in person through counsel states that the entire money has been received by him and he has no objection if the conviction already recorded under Section 138 of the Negotiable Instruments Act is set aside.
(3) MR Mahabir Singh, the learned counsel appearing for the State of Haryana however contends that the conviction and sentence having been upheld by all the three forums, this court need not interfere with the same and it was open for the parties to enter into a compromise at an earlier stage when the appeal was pending. Now this court need not show any indulgence. There is some force in the aforesaid contention. But taking into consideration the nature of offence in question and the fact that the complainant and the accused have already entered into a compromise, we think it appropriate to grant permission, in the peculiar facts and circumstances of the present case, to compound. Necessarily the conviction and sentence under Section 138 of the Act stands annulled. The special leave petition is disposed of accordingly. Court Masters
