Back
2025 Supreme(SC) 53
SUPREME COURT OF INDIA
ABHAY S. OKA, AUGUSTINE GEORGE MASIH, JJ.
K.P. Balachander @ Balu – Appellants
VERSUS
Nirmala Devi Baid & Ors. – Respondents
Criminal Appeal No(S). 44 of 2025 (Arising Out of S.L.P. (Criminal) No(s). 129 of 2025) [@ Diary No. 52950 of 2024]
Decided On : 03-01-2025
For the Petitioner(s): Mr. Vishwaditya Sharma, Adv. Mr. Shiv Ram Sharma, AOR
For the Respondent(s): Ms. Harsha Tripathi, Adv. Mr. Balaji Srinivasan, AOR
The court ruled that an offence under Section 138 of the Negotiable Instruments Act is compoundable, allowing the conviction to be set aside upon settlement.
Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 - Conviction confirmed - Settlement reached between the legal representatives of the deceased complainant and the appellant for a sum of Rs.10,00,000/- - Offence compounded - Impugned judgments and orders set aside, and order of conviction vacated. (Paras 6-8)
(B) Compounding of Offences - The offence under Section 138 of the NI Act is compoundable, allowing for resolution between the parties post-conviction. (Paras 6-8)
Facts of the case:
The appellant was convicted under Section 138 of the NI Act, which was confirmed. The legal representatives of the deceased complainant filed an affidavit indicating a settlement and receipt of Rs.10,00,000/- from the appellant. (Paras 6-7)
Findings of Court:
The court found that the offence stands compounded, leading to the setting aside of the conviction. (Paras 7-8)
Issues: The main issue was whether the settlement between the parties could lead to compounding the offence post-conviction. (Paras 6-8)
Ratio Decidendi: The court ruled that the offence under Section 138 of the NI Act is compoundable, and upon settlement, the conviction is vacated. (Paras 7-8)
Result: Appeal allowed, and the appellant is set at liberty.
ORDER
1. Application for substitution is allowed, subject to all just exceptions, after condoning the delay and setting aside the abatement, if any.
2. An affidavit dated 26th December, 2024, in original, filed by the respondents is taken on record.
3. Delay condoned.
4. Leave granted.
5. Heard the learned counsel appearing for the parties.
6. It is true that the conviction of the appellant for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (for short, “the NI Act”) has been confirmed. The respondents, who are the legal representatives of the deceased complainant, have filed an affidavit dated 26th December, 2024 bringing on record the fact that there is a complete settlement between them and the appellant and they have received a sum of Rs.10,00,000/- (Rupees Ten Lakhs) from the appellant. The third respondent is present through video conference. He also accepts that there is a settlement in terms of what is stated in the affidavit dated 26th December, 2024. The respondents are represented by their Advocate who also states that the offence can be compounded.
7. The offence under Section 138 of the NI Act is compoundable. Now, the offence stands compounded. Therefore, we set aside the impugned judgments and orders and set aside the order of conviction of the appellant.
8. The Appeal is, accordingly, allowed. The appellant shall be immediately set at liberty.
