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

2022 Supreme(Ker) 765

IN THE HIGH COURT OF KERALA AT ERNAKULAM
A. Badharudeen, J.
Nishith P.M., S/o. Kunhanandan - Appellant
Vs.
State Of Kerala, Rep. By The Public Prosecutor, High Court Of Kerala, Ernakulam - Respondent
Crl.M.C.Nos.2626 of 2022, 2627 of 2022 and Crl.M.C.No.2640 of 2022
Decided On : 19-10-2022

Advocates:
Advocate Appeared:
For the Appellant : K.K. Mohamed Ravuf
For the Respondent: Abdul Raoof Pallipath, K.R.Avinash (Kunnath), Prajit Ratnakaran, Raj Carolin V.

Point of Law: It is settled law that in order to execute a decree, decree must be one capable of execution and terms thereof shall be sufficient to get same executed.

Headnote:

Code of Criminal Procedure Code, 1973 - Section 482 – Code of Civil Procedure, 1908 - Section 89 - Order 21 - Negotiable Instruments Act, 1881 – Section 138, 142 - Legal Services Authority Act, 1987 - Section 21 - Civil Procedure Alternate Dispute Resolution and Mediation Rules, 2006 - Rules 24 and 25 - Cognizance of offences - Dishonour of cheque for insufficiency, etc., of funds in Account - Whether a party is precluded from initiating prosecution under Section 142 of N.I Act, when a cheque issued to discharge the liability by settlement in the Adalath in terms of an award under Section 21 of Legal Services Authority Act, if returned unpaid - It is crystal clear that when any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person to discharge, in whole or in part, or any debt or liability, is returned by the bank unpaid, such person shall be deemed to have committed an offence. (Para 17).

Findings of the Court: It has to be held that offence under Section 138 of N.I Act would attract consequent dishonour of any cheques. If cheque or cheques issued in terms of an award passed under Section 21 of Legal Services Authority Act, for payment of the sum specified, drawer of said cheque has no exemption from penal consequences, if said cheque or cheques returned unpaid. To put differently, in case of dishonour of any cheque, legal action is inevitable if payee or holder in due course opts to do so. In such a case, it cannot be held that on dishonour of three cheques issued by petitioner herein to 2nd respondent in terms of Annexure-A1 mediation agreement cannot be basis of launching prosecution alleging commission of offence punishable under Section 138 of the N.I Act.

Result: Dismissed.

ORDER :

Nishith P.M, who is the appellant in Crl.Appeal Nos.87/2021, 86/2021 and 88/2021 pending before the Sessions Court, Thalassery, has filed these petitions under Section 482 of the Code of Criminal Procedure Code (hereinafter referred to as the `Cr.P.C’ for convenience). The prayer in Crl.M.C.No.2626/2022 is to quash all further proceedings in S.T.No.5/2019 on the file of the Judicial First Class Magistrate Court-II, Thalassery and in Crl.Appeal No.87/2021 on the file of the Sessions Court, Thalassery arising out of the same.

2. The prayer in Crl.M.C.No.2627/2022 is to quash all further proceedings in S.T.No.1/2019 on the file of the Judicial First Class Magistrate Court-II, Thalassery and in Crl.Appeal No.86/2021 on the file of the Sessions Court, Thalassery arising out of the same.

3. The prayer in Crl.M.C.No.2640/2022 is to quash all further proceedings in S.T.No.6/2019 on the file of the Judicial First Class Magistrate Court-II, Thalassery and in Crl.Appeal No.88/2021 on the file of the Sessions Court, Thalassery arising out of the same.

4. The respondents herein are State of Kerala as well as the original complainant and the 1st respondent in the above Crl.Appeals.

5. Heard the learned counsel for the petitioner as well as the learned counsel appearing for the 2nd respondent in detail.

6. It is argued by the learned counsel for the petitioner that in terms of Annexure-A1 mediation agreement entered into between the petitioner as well as the 2nd respondent, who were accused and complainant in C.C.No.918/2014 on the file of Judicial First Class Magistrate Court-I, Kannur, the above case was settled at the mediation Sub Centre, Kannur and a mediation agreement was entered into between the petitioner and the 2nd respondent. Since the mediation agreement entered into is under Section 89 of Code of Civil Procedure r/w Rules 24 and 25 of the Civil Procedure Alternate Dispute Resolution and Mediation Rules, 2006, the mediation agreement is an award passed under Section 21 of the Legal Services Authority Act having the trappings of a civil court decree, being deemed decree, and hence the remedy of the 2nd respondent herein is to execute the award by resorting to Order 21 of the Code of Civil Procedure Code. He also submitted that since the dispute reached finality in view of Annexure-A1 settlement, the cheques issued as part of the said settlement cannot be the basis for prosecuting the petitioner, when the said cheques were dishonoured. In order to buttress this contention, the learned counsel placed a decision of the Apex Court reported in [(2012) 2 SCC 51], K.N.Govindan Kutty Menon v. C.D.Shaji. In the said decision, the judgment rendered by this Court in W.P(C).No.33013/2009 dated 24.11.2009 reported in [2010 1 KHC 8] was challenged before the Apex Court. This Court while dealing with Section 21 of the Legal Services Authority Act, 1987 held that an award passed by the Adalat in a criminal case involving offence under Section 138 of the Negotiable Instruments Act can be treated as an order of the criminal court and it cannot be executed as a decree of a civil court. But the Apex Court after considering the impact of Section 21 of the Legal Services Authority Act, settled the following propositions :

    “26. (1) In view of the unambiguous language of Section 21 of the Act, every award of the Lok Adalat shall be deemed to be a decree of a civil court and as such it is executable by that court.

(2) The Act does not make out any such distinction between the reference made by a civil court and a criminal court.

(3) There is no restriction on the power of the Lok Adalat to pass an award based on the compromise arrived at between the parties in respect of cases referred to by various courts (both civil and criminal), tribunals, Family Court, Rent Control Court, Consumer Redressal Forum, Motor Accidents Claims Tribunal and other forums of similar nature.

(4) Even if a matter is referred by a criminal court under Section 138 of the Negotiable

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