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RAJASTHAN HIGH COURT
Pushpendra Singh Bhati, J.
Rajudeen - Appellant
Versus
State & Ors. - Respondents
S.B. Criminal Revision Petition No. 182/2020
Decided On : 11-02-2021
COMPROMISE - NEGOTIABLE INSTRUMENTS ACT - The court acknowledged a compromise between the parties post-judgment, affirming the trial court's decision while referencing Section 147 of the NI Act. The court set aside the conviction under Section 138 due to the settlement, imposing a 15% cost on the petitioner as per the Supreme Court's precedent in Damodar S. Prabhu vs Sayed Babalal H, reflecting the legal principle that settlements can influence the outcome of cases under the NI Act.
Fact of the Case:
The parties reached a compromise after the appellate court's judgment, with the complainant opting not to pursue the matter further.
Finding of the Court:
The court found that the complainant had accepted a settlement amount, leading to the conclusion that the conviction under Section 138 of the NI Act should be set aside.
Issues: Whether the compromise between the parties post-judgment affects the conviction under Section 138 of the NI Act.
Ratio Decidendi: The court relied on Section 147 of the NI Act and the Supreme Court's ruling in Damodar S. Prabhu vs Sayed Babalal H, establishing that a compromise can nullify the consequences of a conviction under the NI Act.
Result: The conviction and sentence of imprisonment were set aside, and the petitioner was ordered to pay 15% of the cheque amount as costs to the Rajasthan State Legal Services Authority.
ORDER
1. In wake of onslaught of COVID-19, abundant caution is being taken while hearing the matters in Court.
2. It is stated at Bar that a compromise has been arrived at between the parties after the judgment dated 28.01.2020 passed by the appellate court, whereby the judgment dated 18.01.2017 passed by the trial has been affirmed.
3. It is borne out from the compromise that the complainant is not inclined to proceed further in the matter.
4. Learned counsel for the parties have placed reliance on a decision of Supreme Court in case of Damodar S. Prabhu vs Sayed Babalal H [2010(5) SCC 66].
5. Having considered the facts and circumstances of the case, since the parties have settled the dispute and complainant respondent No.2 had accepted the sum towards full and final settlement of the cheque, on the satisfaction of the complainant and in the light of provisions of Section 147 of NI Act and in view of law laid down by Hon'ble Apex Court in the case of Damodar S. Prabhu Vs. Sayed Babalal H. (supra), the sentence awarded to the petitioner for offence under Section 138 NI Act is liable to be set aside. However, as compromise has been arrived at after rejection of the appeal preferred by the petitioner, a cost of 15% of the cheque amount deserves to be imposed upon the petitioner in the light of the decision rendered by the Hon'ble Apex court in the case of Damodar S. Prabhu (Supra).
6. Accordingly, the petitioner is directed to deposit 15% of the cheque amount with the Deputy Secretary, Rajasthan State Legal Services Authority, Jodhpur within a period of two weeks from today.
7. The conviction and sentence of imprisonment awarded to the petitioner for offence under Section 138 Negotiable Instruments Act, vide judgment dated 18.01.2017 passed by learned Special Judicial Magistrate (N.I. Act Cases) No.3, Bikaner in Criminal Original Case No.63/15 as affirmed by judgment dated 28.01.2020 passed by learned Additional Sessions Judge (Women Atrocity Cases), Bikaner in Criminal Appeal No.51/2018 (CIS No.11/17), are hereby set aside on the basis of the aforesaid compromise.
8. The revision petition is disposed of accordingly. All pending applications also stand disposed of.
A compromise reached between parties can lead to the setting aside of a conviction under Section 138 of the Negotiable Instruments Act, provided the complainant is satisfied with the settlement.
A compromise between parties in a cheque bounce case under Section 138 of the NI Act can lead to the setting aside of conviction and sentence, provided the complainant is satisfied with the settlemen....
A compromise between parties in a cheque bounce case under Section 138 of the NI Act can lead to the setting aside of a conviction, provided the complainant is satisfied with the settlement, as suppo....
The court can set aside a conviction and sentence under Section 138 of the Negotiable Instruments Act based on a compromise settlement between the parties, and may impose a cost in line with relevant....
The court can quash convictions under the Negotiable Instruments Act when parties reach a genuine compromise, emphasizing recovery over punishment.
The court can accept a genuine compromise between the parties under Section 147 of the NI Act and quash the conviction and sentence to secure the ends of justice.
The judgment established the principle that the inherent jurisdiction of the High Court under Section 482 of the CrPC supported by Section 147 of the NIA can be invoked to quash proceedings based on ....
The court can grant permission to compound the offence under Section 138 N.I.Act and waive costs based on settlement and specific reasons.
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