An acquittal under Section 147 of the Negotiable Instruments Act is void if based on fraudulent misrepresentation regarding payment, and such error can be rectified by restoring the original proceedings.

ORDER :

S. VISHWAJITH SHETTY, J.

1. These two petitions arise between the same parties out of the same proceedings and therefore they are heard together and disposed off by this common order.

2. Heard learned counsel for the parties.

3. Petitioner in Criminal Petition No.103181/2025 had initiated proceedings against the respondent therein, before the Jurisdictional Court of Magistrate for offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (for short, ‘NI Act’).

4. It is the case of the petitioner that towards repayment of the amount of Rs.5,00,000/- which the respondent was due to pay him, the cheque issued by him for a sum of Rs.5,00,000/- in favour of the petitioner dated 18.09.2017 drawn on ICICI Bank, Ilkal branch bearing Cheque No.178872, was dishonoured by the drawee Bank and in spite of service of statutory notice on the respondent, he had failed to pay the amount covered under the cheque in question and it is under these circumstances, petitioner had filed a private complaint in PCR No.4/2018 and in the said order after taking cognizance of the alleged offence, respondent was being tried before the Jurisdictional Court of Magistrate for the alleged offence in C.C.No.148/2021.

5. It appears that during the pendency of the proceedings before the trial Court, an application under Section 147 of NI Act was filed by the parties on 26.04.2021, wherein it was stated that respondent had agreed to pay the amount of Rs.2,00,000/- to the petitioner towards full and final settlement of the amount covered under the cheque in question and it was further stated that the said amount shall be paid by respondent on or before 26.07.2021. The trial Court therefore had referred the parties to the Lok Adalath by order dated 26.04.2021. The matter was thereafter called before the Lok Adalath on 14.08.2021. On the same date, the application filed by the parties under Section 147 of NI Act, wherein respondent had agreed to pay an amount of Rs.2,00,000/- was taken into consideration and the respondent/accused was acquitted in view of respondent agreeing to pay the aforesaid amount. The order dated 14.08.2021 passed by the Lok Adalath reads as under:

“Complainant and counsel have filed application U/Sec.147 of N.I.Act stating the accused has agreed to pay entire amount as per compromise. Hence, they have sought for closing the case in view of accused paying the entire amount. Therefore, we proceed to pass the following…

ORDER

The application filed U/Sec.147 of N.I.Act is allowed. Accused is acquitted in view of accused agreeing to pay entire cheque amount.”

6. It appears that thereafter an application was filed by the petitioner before the trial Court to take the disposed off case on Board and issue non-bailable warrant against the respondent since he had not paid any amount as agreed and undertaken in the application filed under Section 147 of NI Act. The learned trial Judge by order dated 31.08.2021 had accordingly issued non-bailable warrant to the respondent. Aggrieved by the same, the respondent/accused is before this Court in Criminal Petition No.102216/2021. Challenging the order passed by the Lok Adalath on 14.08.2021 acquitting the respondent in view of the application filed under Section 147 of NI Act, petitioner/complainant is before this Court in Criminal Petition No.103181/2025.

7. Learned counsel for the petitioner/complainant submits that no amount was paid by the respondent/ accused as per the terms of application filed under Section 147 of NI Act, on 26.04.2021. Ne