ARAVIND KUMAR, SANDEEP MEHTA
Gian Chand Garg – Appellant
Versus
Harpal Singh – Respondent
ORDER
1. Heard. Leave Granted.
2. The present appeal arises out of the Impugned Order dated 27.03.2025 passed by the Punjab and Haryana High Court in Criminal Revision Petition No. 2563 of 2010 by which High Court has affirmed the conviction and sentence of the appellant under section 138 of the Negotiable Instruments Act, 1881 (hereinafter to be referred as “NI Act”) rendered by the court of Judicial Magistrate First Class (JMFC) vide its order dated 21.04.2010 in Criminal Case No. 90 of 2009 and upheld by the Additional Sessions Judge in Criminal Appeal No. 67 of 2010 vide order dated 14.09.2010.
3. The material facts relevant for the disposal of present appeal are set forth hereunder:
3.1 The respondent No.1 herein filed a complaint under the NI Act against the appellant, alleging that he had borrowed a sum of Rs.5,00,000/-, and for repayment of the said debt, had issued a cheque (Ex. C-1), which, on presentation, was returned with an endorsement “funds insufficient” (Ex. C-2), after issuing the legal notice (Ex. C-4). The complaint came to be filed before the jurisdictional Magistrate. After trial, the appellant was convicted and sentenced to undergo simple imprisonment for a perio
P. Mohanraj & Ors. v. M/s. Shah Brothers Ispat Pvt. Ltd. (2021) 6 SCC 258 – Relied. [Para 7]
M/s. Gimpex Private Limited v. Manoj Goel (2021) SCC OnLine SC 925 – Relied. [Para 8]
B.V. Seshaiah v. State of Telangana & Anr. (2023) SCC OnLine SC 96 – Relied. [Para 9]
Dishonour of cheque – Offence can be compounded at any stage of proceedings especially when parties have themselves arrived at a voluntary compromise.
The judgment established the principle that the inherent jurisdiction of the High Court under Section 482 of the CrPC supported by Section 147 of the NIA can be invoked to quash proceedings based on ....
The main legal point established is that the compounding of the offence under Section 138 of the Negotiable Instruments Act can be allowed based on a mutual compromise between the parties, leading to....
Dishonour of cheques is a regulatory offence and ‘compensatory aspect’ of remedy shall have priority over ‘punitive aspect’ – Courts should encourage compounding of offences under NI Act if parties a....
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