ANDHRA PRADESH HIGH COURT
R. Seshasayyana Reddy, J.
D. Lakshmi —Petitioner
versus
Y.V. Sarma and Anr. —Respondents
Cri RC No. 74 of 2013
Decided on : 11.3.2013

IMPORTANT POINT
When once guidelines are issued in the matter of entertaining the applications for compounding the offence under Section 138 of the N.I. Act, they are to be made applicable to all the cases pending in whatever stage they are.

Headnote:Negotiable Instruments Act, 1881—Section 147—Compromise settlement between parties during pendency of appeal against conviction—Whether guidelines issued by Supreme Court in Damodar S. Prabhu case as to payment of certain percentage of amount to Legal Services Authority could be avoided by accused petitioner on plea that complaint in the case had been filed prior to guidelines came in force? No.

       Held: The directions issued by the Supreme Court in a decision constitute binding law under Article 141 of the Constitution of India. When the Supreme Court decides a principle it would be the duty of the High Court or subordinate Courts to follow that decision.

       In interpreting the judgment of the Supreme Court in the abovereferred case to make the guidelines applicable to the cases instituted subsequent to the judgment is nothing but diluting the guidelines issued by the Supreme Court. I express my inability to accept the view taken by the learned Single Judge of the Jharkhand High Court in Krishna Prasad’s case (supra). When once guidelines are issued in the matter of entertaining the applications for compounding the offence under Section 138 of the N.I. Act, they are to be made applicable to all the cases pending in whatever stage they are. Supreme Court has given discretion to the trial Court or appellate Court to reduce the scale of costs having regard to the specific facts and circumstances of each case. In that view of the matter, I do not set any illegality or irregularity in the order impugned in the revision case warranting interference of this Court in exercise of power under Sections 397 and 401 Cr.P.C. (Paras 7 & 8)

       Result: Petition dismissed.