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2018 Supreme(Kar) 946

IN THE HIGH COURT OF KARNATAKA
John Michael Cunha, J.
Venkatachalapathy - Appellant
Vs.
Harish Kumar V.L. - Respondent
Writ Petition No. 1710 of 2018
Decided On : 08-08-2018

Advocates:
Advocate Appeared:
R.S. Hegde, Abhinay Y.T.

Headnote:

Negotiable Instrument Act - Section 138 - Constitution of India, 1950 - Article 227 - Criminal Procedure Code, 1973 - Sections 313 and 482 – Dishonored of cheque – Seeking to quash of Award - Respondent initiated proceedings against petitioner herein ("accused") for dishonour of cheque issued by petitioner under Section 138 of Act. After closure of evidence, accused was examined under Section 313 of Cr.P.C. At that stage, parties moved a Joint Memo before XIII Addl. ACMM, at Bengaluru - Joint Memo reads as follows - We the Complainant and accused submit that we settled the subject matter in the above cases amicably. Accordingly to settlement arised, accused has agreed to pay a sum of Rs. 12,00,000/- (Rupees Twelve Lakhs Only) to the complainant by way of D.D. in Three (3) installments as follows - 1st Installment by way of D.D. - Held, It is really unfortunate that the learned Magistrate has given a go bye to these solitary guidelines laid down by the Honble Supreme Court and the High Court and has acted contrary to the rules and procedure governing the subject thereby causing prejudice to the litigants as well as to the cause of justice. Needless to say that on account of the approach adopted by the learned Magistrate, the respondent has been denied the benefit of the said Joint memo. Nonetheless, impugned award having been passed without the concurrence of the parties, there is no other alternative than to set aside the impugned award - Accordingly, the award passed by Lok Adalat in C.C. is hereby set aside and the consequent proceedings of the learned Magistrate in C.C.No.25663/2016 are restored to file - Petition disposed of.

JUDGMENT :

John Michael Cunha, J.

This petition is filed under Article 227 of the Constitution of India r/w Section 482 of Cr.P.C. seeking to quash the award dated 14.10.2017 (Annexure-'A') in C.C. No. 25663/2016 passed by the XIII Addl. Chief Metropolitan Magistrate, at Bengaluru .

2. Heard learned counsel for the petitioner and learned counsel for the respondent. Perused the records.

3. The respondent herein initiated proceedings against the petitioner herein (hereinafter referred to as "accused") for dishonour of cheque issued by the petitioner under Section 138 of the Negotiable Instrument Act. After closure of the evidence, accused was examined under Section 313 of Cr.P.C. At that stage, the parties moved a Joint Memo before the XIII Addl. ACMM, at Bengaluru.

4. The Joint Memo reads as follows:

"We the Complainant and accused submit that we settled the subject matter in the above cases amicably. Accordingly to the settlement arised, accused has agreed to pay a sum of Rs. 12,00,000/- (Rupees Twelve Lakhs Only) to the complainant by way of D.D. in Three (3) installments as follows:

1. 1st Installment by way of D.D. on 23.10.2017 for a sum of Rs. 4,00,000/-(Rupees Four Lakhs Only).

2. 2nd Installment by way of D.D. on 25.11.2017 for a sum of Rs. 4,00,000/-(Rupees Four Lakhs Only).

3. 3rd Installment by way of D.D. on 20.12.2017 for a sum of Rs. 4,00,000/-(Rupees Four Lakhs Only). Further complainant submit that, if the accused fails/defaults to pay the agreed amount through D.D. as mentioned above, the Complainant has the liberty to approach this Hon'ble Court to proceed with the above said case.

4. It is submitted that, the complainant and accused have agreed for the same. Hence, this Memo.

Wherefore, the Complainant and Accused pray that this Hon'ble Court may be pleased to take this memo on record and pass necessary order, in the interest of justice and equity.

Sd/-

Advocate for Complainant

Sd/-

Complainant

Sd/-

Advocate for Accused

Sd/-

Accused

BENGALURU

DATE: 06/10/2017

4. The order sheet dated 6.10.2017 reads as under: Complainant and accused present and their respective counsel present and identified them. Complainant and accused intend to settle the matter and hence they filed joint memo signed by themselves and their respective counsel. Terms and condition of joint memo read over and explained to complainant and accused. Both of them have agreed for the terms and conditions of the joint memo. Matter refer to Lok-Adalath.

5. Based on the above order, matter was referred to Lok- Adalat and an award came to be passed by the Lok-Adalat vide Annexure-'A'. As per the said award, learned Magistrate closed the proceedings with the following order dated 04.12.2017 which reads as under:

Case is called at Lok Adalath. Complainant, accused and their counsels present. Complainant and accused filed Joint Memo reporting settlement in between them as per the terms and conditions of the Joint memo. Contents of the Joint memo read over and explained to the parties and they have agreed for the terms and condition. As per the Joint memo, the accused has agreed to pay Rs. 12,00,000/- as full and final settlements and agree to pay the above said amount to the Complainant in three(3) monthly installments.

1. 1st Installment by way of D.D. On 23.10.2017 for a sum of Rs. 4,00,000/-.

2. 2nd Installment by way of D.D. on 25.11.2017 for a sum of Rs. 4,00,000/-.

3. 3rd Installment by way of D.D. on 20.12.2017 for a sum of Rs. 4,00,000/-.

The said terms of settlement are voluntary one. Hence, the Joint memo filed by the Complainant and accused is hereby accepted. Draw award accordingly.

Call on for 1st installment on: 23.10.2017.

Sd/-

14.10.

(Judicial Conciliator).

Sd/-

Conciliator

6. Learned counsel for the petitioner at the outset submitted that the award said to have been passed by the Lok Adalat does not contain signatures of the conciliator. There is nothing on record to indicate that either of the parties appeared before the Lok Adalat on 14.10.2017. The petitioner/a
















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