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SUPREME COURT OF INDIA
D.M. Dharmadhikari, B.N. Srikrishna, JJ.
Cochin Hotels Co. (P) Ltd. and others - Appellants
Versus
Kairali Granites and othres - Respondents
Criminal Appeal Nos. 222-23 of 2005 (Arising out of SLPs (Crl.) Nos. 702-03 of 2005)
Decided On : 04-02-2005
Negotiable Instruments Act - Compounding of Offence
Fact of the Case:
The appellants were convicted under Section 138 of the Negotiable Instruments Act and sentenced to imprisonment and fine. They surrendered and compounded the offence by paying the entire dues to the complainant. An application seeking permission to compound the offence was filed.
Finding of the Court:
The court allowed the compounding of the offence, setting aside the sentence of imprisonment but maintaining the sentence of fine, and ordered the release of the applicants.
Issues: Conviction under Section 138 of the Negotiable Instruments Act, compounding of the offence, and sentencing.
Ratio Decidendi: The court found that the offence was compoundable under Section 147 of the Negotiable Instruments Act and allowed the compounding of the offence, maintaining the fine but setting aside the imprisonment sentence.
Final Decision: The appeals were allowed, and the compounding of the offence was permitted, leading to the release of the applicants.
ORDER :
Leave granted.
2. Heard learned counsel for the parties.
3. The appellants have been convicted by all the three courts under Section 138 of the Negotiable Instruments Act, 1881 and sentenced to three months' simple imprisonment and Rs. 5000 as fine. The accused-appellants have surrendered and it is stated that the offence has been compounded by paying the entire dues to the complainant. An application jointly signed has also been filed seeking permission to compound the offence. Section 147 of the Negotiable Instruments Act, as amended, makes the offence compoundable and we find no ground to reject the prayer for compounding the offence.
4. In the circumstances, we allow these appeals and permit the compounding of offence by setting aside the sentence of imprisonment but in the circumstances we shall maintain the sentence of fine. The appeals are accordingly allowed.
5. As we have allowed the compounding of offence, the applicants shall be released forthwith.
Appeals allowed.
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