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2011 Supreme(SC) 322
Supreme Court of India
DALVEER BHANDARI & DEEPAK VERMA
B.V. Vidhyashankar
Versus
B. Mahaveer Kumar
CRIMINAL APPEAL NO.873 OF 2011 (Arising out of SLP(Crl.) No.8662/2008)
Decided on: 28-03-2011
In cases involving dishonoured cheques under the Negotiable Instruments Act, the court may consider the peculiar circumstances and the willingness of the parties to reach a settlement in setting aside the conviction and ordering the payment.
Headnote:
Negotiable Instruments Act - Dishonoured Cheque - Setting aside conviction and payment of amount
Fact of the Case:
The appellant issued a cheque that was dishonoured, leading to a complaint under Section 138 of the Negotiable Instruments Act. The Trial Court convicted the appellant and imposed a fine, which was affirmed by higher courts.
Finding of the Court:
In the peculiar circumstances, the court set aside the conviction and ordered the appellant to pay the complainant a specified amount, with interest, leading to the disposal of the appeal.
Issues: Conviction under Section 138 of the Negotiable Instruments Act, payment of fine, and setting aside of conviction.
Ratio Decidendi: The court considered the deposit made by the appellant and the willingness of the complainant to accept a specified amount, leading to the decision to set aside the conviction and order the payment.
Final Decision: The appeal was disposed of with the direction to pay the complainant a specified amount and to set aside the conviction, with a clear statement that the case should not be treated as a precedent.
Judgment
1. Leave granted.
2. We have heard the learned counsel for the parties.
3. The appellant issued a cheque bearing No.112378 dated 5.12.2002 of Citibank for Rs.1,30,000/- in favour of the respondent, which was dishonoured when presented to the drawee bank. The respondent filed a complaint under Section 138 of the Negotiable Instruments Act, 1881.
4. The Trial Court convicted the appellant for having committed the offence punishable under Section 138 of the Negotiable Instruments Act and sentenced him to pay a fine of Rs.2 lakhs, out of which Rs.1,90,000/- to be paid to the complainant and the remaining Rs.10,000/- to be appropriated by the State. The order of conviction and sentence passed by the Trial Court was affirmed by the revisional court and the High Court.
5. The appellant has deposited Rs.1 lakh before the Trial Court and in pursuance of the direction of this Court, Rs.1 lakh has been deposited in the Registry of this Court.
6. Learned counsel for the respondent-complainant submits that the respondent has no objection in setting aside the order of conviction of the appellant if out of the amount of Rs.2 lakhs deposited by the appellant Rs.1,90,000/- is given to him.
7. In the peculiar facts and circumstances of this case, we are of the considered view that ends of justice would meet if the respondent-complainant is paid Rs.1,90,000/-, with interest accrued thereon, and the conviction of the appellant is set aside. We order accordingly.
8. The amount of Rs.1 lakh which has been deposited in the Trial Court be handed over to the respondent-complainant within four weeks from today and out of Rs.1 lakh deposited by the appellant in the Registry of this Court, Rs.90,000/-, with interest accrued thereon, be paid to the respondent-complainant and Rs.10,000/-be appropriated by the State.
9. However, we make it clear that this case has been decided on its own peculiar facts and shall not be treated as a precedent.
10. The appeal is disposed of with the aforementioned observations and directions.
Appeal disposed of.
