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IN THE HIGH COURT OF DELHI
Subramonium Prasad, J.
Mohd. Aftab - Appellant
Versus
State Govt. of NCT of Delhi - Respondent
Crl.Rev.P. 13 of 2021 & Crl.M.A. 618 of 2021
Decided On : 10-12-2021




The offense under Section 138 of the N.I. Act becomes unpunishable once compounded, disallowing claims for compensation under Section 357(3) Cr.P.C.

Headnote:(A) Negotiable Instruments Act, 1881 - Sections 138 and 147 - Criminal Procedure Code, 1973 - Sections 397 and 482 - Revision petition against appellate court's order modifying sentence and for compensation - The offense is compoundable under Section 147 and cannot warrant a sentencing after compounding. The petitioner sought the return of the deposited amount forfeited, citing Section 357(3), but was found ineligible for compensation post-compounding due to the absence of a warranted sentence. The court emphasized that revisional jurisdiction is limited, not to substitute judgments unless there are glaring errors. (Paras 6, 7, 10)

Facts of the case:
The Respondent borrowed funds from the Petitioner, issued a dishonoured cheque, was convicted for it, and appealed the sentence. The appellate court settled the matter with repayment terms but forfeited the deposited amount.

Findings of Court:
The court concluded there was no legal basis for the petitioner's claims post-compounding.

Issues: The key issues were the entitlement to the forfeited amount and the applicability of compensation laws post-compounding.

Ratio Decidendi: The court ruled that after compounding an offense under the N.I. Act, the petitioner has no claim for compensation due to no punitive basis post-compounding.

Result: Petition dismissed.

Table of Content
1. overview of loan and cheque case (Para 2 , 3 , 4)
2. compounding of cheque dishonor offense (Para 6 , 7 , 8)
3. limited scope of revisional jurisdiction (Para 9)
4. dismissal of petition and imposition of cost (Para 10 , 11)

JUDGMENT

Subramonium Prasad, J.

1. This revision petition under Section 397 Cr.P.C. read with Section 482 Cr.P.C. is directed against the judgment dated 24.12.2020 passed by the learned Additional Sessions Judge-03, East Karkardoom Courts, Delhi, passed in Criminal Appeal No. 27/2020.

2. The facts, in brief, leading up to this petition are as follows:

a) On 02.07.2013 and on 08.08.2013, Respondent No.2 had borrowed sum or Rs. 1,50,000/- and Rs. 1,00,000/-, respectively, from the Petitioner/Complainant, for the purpose of constructing a house. It is stated that for repayment of the loan, Respondent No.2 issued cheque no. 365655 dated 01.11.2014 for a sum of Rs. 2,50,000/-, and this cheque was dishonoured on presentation. On failure of payment, the Petitioner filed a complaint under Section 138 of the Negotiable Instruments Act, 1881, (hereinafter, "N.I. Act") bearing old case C.C. No. 70/2015, and new C.C. No.2512/2017 before the Ld. Metropolitan Magistrate, Karkardooma Courts, Delhi.

b) It is stated that after Respondent No.2 failed to comply with settlement agreement, that was borne out of the reference of the matter for settlement by the Ld. Trial Court, the matter was heard, and Respondent No.2 was subsequently convicted vide Order of the Ld. Trial Court dated 19.12.2019. Vide Order dated 16.01.2020, Respondent No.2 was sentenced to rigorous imprisonment for a period of 6 months and was directed to pay a sum of Rs. 3,00,000/- to the Petitioner/Complainant within a period of 30 days.

c) It is stated that on 14.02.2020, Respondent No. 2 preferred Crl. Appeal No. 27/2020 before Ld. Trial Court assailing the judgements dated 19.12.2019 and 16.01.2020. It is stated that the same was admitted, subject to the condition that an amount of Rs. 60,000/-, i.e. 20% of the compensation and fine amount imposed by the Trial be deposited through bank draft/DD in favour of Ld. District & Sessions Judge (East) by the next date of hearing. It is stated that thereafter, the matter was referred for settlement as per which Respondent No.2 was directed to pay Rs. 3,00,000/- to the Petitioner/Complainant in four instalments.

d) It is stated that after repayment of the compensation amount, the matter was disposed of vide impugned Order dated 24.12.2020 wherein it was held that sentence that had been awarded by the Ld. Trial was hereby modified and the amount of Rs. 60,000/- that had been deposited at the time of admission would be forfeited towards the imprisonment sentence and thus, transferred to the account of Delhi Legal Services Authority (East), Delhi.

e) Being aggrieved with the Order dated 24.12.2020, the Petitioner/Complainant has approached this Court by filing the instant revision petition with the following prayers:

"(i) Set aside the impugned order dated 24.12.2020 passed by Ld. Adell. Sessions Judge, KKD Court in Crl. Appeal No.27/2020 and allow the Petitioner to recover the amount of 200% i.e. Rs.60,000/- as deposited through Bank Draft/DD in favour of Ld. District & Sessions Judge (East) at the time of admission of the said appeal 1n lieu of suspensions 7of 6 months R.I. sentence of Respondent No.1.

(ii) Enhance fine in lieu of suspension of the sentence of the Respondent No.1 along with the aforesaid deposited amount in favour of the Petitioner for the end of justice.

(iii) Pass any other order as this Hon'ble Court may deem fit and proper in the interest of justice."

3. Mr. R.S. Rathi, learned Counsel for the Petitioner, argues that the amount of 20% of the total compensation, i.e. Rs. 60,000/- that was directed by the Ld. Trial Court to be deposited at the time of admission of the appeal and subsequently forfeited towards the imprisonment sentence of Respondent No.2, should be allowed in f

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