IN THE HIGH COURT OF KARNATAKA
J.M.Khazi, J.
Yogesh - Appellant
Versus
Shamalal - Respondent
Criminal Petition No. 102386 of 2021 (482-CRPC)
Decided On : 03-09-2022
Sec. 138 of the Negotiable Instruments Act, 1881 - Quashing of Proceedings - Compromise between Parties
Fact of the Case:
The petitioners filed a petition to set aside the order taking cognizance for the offence punishable under sec. 138 of the Negotiable Instruments Act, 1881. The petitioners and the respondent entered into a compromise during the pendency of the petition.
Finding of the Court:
The court allowed the petition and quashed the proceedings in view of the compromise entered into between the parties.
Issues: Criminal proceedings under sec. 138 of the Negotiable Instruments Act, 1881
Ratio Decidendi: The court considered the compromise entered into between the parties and allowed the petition to quash the proceedings.
Final Decision: The petition is allowed, and the proceedings against the petitioners for the offence punishable under sec. 138 of the Negotiable Instruments Act, 1881, are quashed.
JUDGMENT
1. The petitioners, who are arraigned as accused No.2 and 3 before the Trial Court, have filed this petition under sec. 482 of Cr.P.C., with a prayer to set-aside the order passed by the XI Additional Sessions Judge, Belagavi in Criminal Revision Petition No.427/2019, confirming the order dtd. 5/8/2019 passed in C.C.No.410/2019 on the file of the JMFC-VIII, Belagavi taking cognizance for the offence punishable under sec. 138 of the Negotiable Instruments Act, 1881 ( for short "N.I.Act").
2. Petitioners have contended that based on private complaint filed by the respondent in PC No.101/2010 (C.C.No.267/2010) for the offence punishable under sec. 138 of the N. I. Act, came to be registered. On 11/11/2014, the complaint came to be returned for want to territorial jurisdiction in view of the decision of the Hon'ble Apex Court in the case of Dasharath Rupsingh Rathod Vs. State of Maharashtra,AIR 2014 SC 3519. i.e. Criminal Appeal 2287/2009. However, the complaint was represented in P.C.No.686/2016 before the Principal Civil Judge and JMFC, Hubballi after delay of 20 months. Based on the memo filed by the respondent, the complaint was returned for presentation before the jurisdictional Court. Once again, respondent presented the complaint in P.C.No.410/2019 before the JMFC-VIII, Belagavi on 5/8/2019 with application for condonation of delay of nine years. The Trial Court has taken cognizance and issued summons against the petitioners. Against the said order, the petitioners filed criminal Revision Petition No.427/2019 on 18/9/2019. However, the said petition came to be dismissed on 21/10/2021. Aggrieved by the same, petitioners have come up with this petition.
3. However, during the pendency of the petition, petitioners and respondent have entered into compromise. They have filed an application under sec. 147 of the N.I. Act for compounding the offence, which is supported by affidavits of both the parties and sought for quashing the proceedings in P.C.No.410/2019 on the file of the JMFC-VIII, Belagavi for the offence punishable under sec. 138 of the N.I. Act. Both the parties are present before the Court today and on enquiry, they admit the compromise. Towards full and final settlement, the petitioners have offered Rs.2,50,000.00 and respondent has accepted the same by way of demand draft bearing No.248282 dtd. 16/8/2022 of Punjab National Bank. The parties have also agreed that they have no claim whatsoever against each other. In view of the compromise entered into between the parties, I proceed to pass the following:
ORDER
The petition is allowed.
The proceedings in P.C.No.410/2019 on the file of the JMFC-VIII, Belagavi against the petitioners for the offence punishable under sec. 138 of the N. I. Act, is hereby quashed.
In view of disposal of the matter, pending interlocutory applications, if any, do not survive for consideration and are disposed of accordingly.
AI
The court can quash proceedings under sec. 138 of the Negotiable Instruments Act, 1881, based on a compromise between the parties.
A conviction under Section 138 of the Negotiable Instruments Act can be quashed upon the parties reaching a compromise, acknowledging the compoundable nature of the offence under Section 147.
Under Section 147 of the Negotiable Instruments Act, an offence under Section 138 is compoundable without court permission, allowing for acquittal upon parties reaching a compromise.
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