SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img



IN THE HIGH COURT OF DELHI
Manoj Kumar Ohri, J.
Nikhil Infratech Ltd. - Appellant
Versus
Intec Capital Ltd. - Respondent
Crl. Rev. P. 59 of 2020
Decided On : 23-09-2021




The Supreme Court's guidelines allow compounding offences under Section 138 N.I. Act upon payment of 15% of the cheque amount, subject to no objection from the complainant.

Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 - Revision petition concerning conviction under Section 138 for dishonoring cheques - Petitioners convicted, sentenced, and subsequently appealed - The appeal led to partial modification of sentence - Payment of fine amount and compliance with procedural directives were discussed. (Paras 1, 3, 5, 9)

(B) Compounding of Offences - The Supreme Court guidelines as per Damodar S. Prabhu v. Sayed Babalal H. are applied, allowing compounding upon payment of 15% cheque amount - Complainant's no-objection and settlement between parties determined a resolution. (Paras 4, 8)

Facts of the case:
Petitioners issued cheques to discharge liabilities which were dishonored for 'Stop Payment' - Despite notice of non-payment, the accused failed to make required payments.

Findings of Court:
In light of the settlements and compliance by the accused, the conviction under Section 138 is compounded, leading to acquittal based on the complainant's lack of grievance.

Issues: The questions related to the compliance with the sentencing order and the implications of the settlement between parties post-conviction.

Ratio Decidendi: The guidelines for compounding established by the Supreme Court are upheld, allowing a court to permit compounding of Section 138 offences if conditions are met, reaffirming procedural safeguards.

Result: The petitioners stand acquitted.

Table of Content
1. facts of the case involving cheque dishonor. (Para 1 , 2)
2. petitioners' compliance with sentence and terms. (Para 3 , 4)
3. compromise and absence of grievance from the respondent. (Para 5 , 6 , 7)
4. guidelines for compounding under section 138. (Para 8 , 9)
5. petition disposed; petitioners acquitted. (Para 10)

JUDGMENT

Manoj Kumar Ohri, J. (Oral)--The present revision petition has been filed under Section 397 Cr.P.C. read with Section 401 Cr.P.C. on behalf of the petitioners seeking setting aside of the judgment dated 18.01.2020 passed by the learned Addl. Sessions Judge-02, South East District, Saket Court, Delhi in Criminal Appeal No. 78/17 and the judgment on conviction dated 18.01.2017 passed by the learned Metropolitan Magistrate, South East, Saket Court, New Delhi in Complaint Case No. 346/2/13 (614363/16). Vide the impugned judgment on conviction passed by the learned Metropolitan Magistrate, the petitioners were convicted for the offence punishable under Section 138 of the N.I. Act. Vide order on sentence dated 25.01.2017, petitioner Nos. 2, 3 and 4 were sentenced to undergo Simple Imprisonment for a period of 2 years, 6 months and 3 months respectively, alongwith fine of Rs.6,80,208/- to be paid by all petitioners including petitioner No. 1, in default whereof petitioner Nos. 2, 3 and 4 were directed to undergo Simple Imprisonment for 6 months each. Feeling aggrieved with the aforesaid judgment of conviction and order on sentence, the petitioners preferred an appeal before the Sessions Court and vide the impugned judgment dated 18.01.2020, the sentence of petitioner No. 2 was modified and reduced to Simple Imprisonment for 1 year, while sentences of other petitioners were left undisturbed.

2. Brief facts, as noted in the impugned judgment on conviction, are as follows:

    "The facts of the case as per the complaint are that in discharge of dues and liabilities the accused have issued cheques bearing No. 006138, 006139, and 006140 dated 01.03,2010, 01.04.2010 and 01.05.2010 respectively for Rs.1,13,368/- each drawn on State Bank of India, South Extension Part-1, New Delhi. The said cheques on being presented by the complainant to his bank was got dishonoured vide bank memo dated 06.09.2010 for the ground " Stop Payment" and the accused failed to make the payment of said cheque amount despite service of notice dated 30.09.2010."

3. On 21.01.2020, learned counsel for the petitioners stated that the petitioners were ready to pay the entire fine amount imposed by the Trial Court and also handed over Demand Draft bearing No. 76668 dated 20.01.2020 for an amount of Rs.3,30,208/- and Demand Draft bearing No. 503499 dated 21.01.2020 for an amount of Rs.3,50,000/- to Deputy Manager (Legal) of the respondent.

4. In furtherance of the above, the petitioners' sentence was suspended and they were directed to be released on bail during the pendency of the proceedings. However, the petitioners were directed to pay 15% of the cheque amount to Delhi State Legal Services Authority, Patiala House Courts Complex, New Delhi (DSLSA) in terms of the decision of the Supreme Court in Damodar S. Prabhu v. Sayed Babalal H. reported as (2010) 5 SCC 663.

5. On the last date of hearing, learned counsel for the respondent submitted that the matter has been compromised between the parties and the entire settlement amount has been received by the respondent, wherefore it is left with no claim whatsoever against the petitioners. It was pointed out that the petitioners had not complied with the order dated 21.01.2020.

6. Learned counsel for the petitioners submits that the order dated 21.01.2020 has been complied with. He further submits that 15% of the cheque amount has already been deposited with the DSLSA and the receipt has been placed on record.

7. In view of the above, learned counsel for the respondent submits that the respondent is now left with no grievance against the petitioners and has no objection if the present

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top