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2023 Supreme(Raj) 2037

IN THE HIGH COURT OF RAJASTHAN
Farjand Ali, J.
Daulat Singh Chouhan - Petitioner
Versus
State Of Rajasthan and others - Respondents
S.B. Criminal Revision Petition No. 711 of 2022
Decided On : 02-11-2023

Advocates:
Advocate Appeared:
For the Petitioner: Mr. R.R. Ankiya
For the Respondent: Mr. Abhishek Purohit, AGA and Mr. Hitesh Kumar

Under Section 147 of the Negotiable Instruments Act, an offence under Section 138 is compoundable without court permission, allowing for acquittal upon parties reaching a compromise.

Headnote:(A) Negotiable Instruments Act - Section 138 and Section 147 - Criminal Revision Petition concerning conviction under Section 138 for dishonor of cheque, resulting in one-year imprisonment and compensation ordered of Rs.7,50,000/- - Delay of 875 days in filing for revision petition, condoned due to compromise between parties - As per Section 147, offence is compoundable without court permission, leading to setting aside of judgment and acquittal of accused - Cost of Rs.25,000/- imposed on petitioner for wasting court's time. (Paras 1, 2, 4, 7)

Facts of the case:
The petitioner was convicted under Section 138 after trial, subsequently filed an appeal that was dismissed. Parties later reached a compromise by settling the due amount through a deed dated 13.01.2022.

Findings of Court:
The revision petition is allowed, and the judgments of conviction and sentencing are quashed; the petitioner is acquitted; however, a cost is imposed due to the delayed resolution.

Issues: The main issues involved were the legal effect of the compromise between the parties and the appropriateness of quashing the judgment of conviction given the payment satisfaction.

Ratio Decidendi: The court emphasized that under Section 147 of the N.I. Act, the offence is compoundable without needing court permission, thereby allowing the compromise to result in acquittal and the necessity of imposing costs for court time.

Result: The revision petition is allowed; judgments quashed; accused acquitted.

Table of Content
1. conviction and sentencing details under section 138 of n.i. act. (Para 2 , 3)
2. parties reached a compromise; the offence is compoundable. (Para 4)
3. review of case records and compromise deed. (Para 5)
4. imposition of costs due to misuse of court time. (Para 6)
5. quashing of conviction based on compromise; cost imposed. (Para 7)
6. petitioner's release from custody; bail bonds discharged. (Para 8)
7. disposal of stay petition. (Para 9)

ORDER :

Farjand Ali, J.

The instant revision petition is barred by limitation from 875 days. For the reasons mentioned in the application under Section 5 of the LIMITATION ACT and also looking to the fact that the parties have arrived at a compromise and settled their dispute, the application seeking condonation of delay is accepted. The delay in filing the revision petition is condoned.

2. The petitioner has approached this Court for challenging the judgment dated 24.09.2019 passed by the learned Additional Sessions Judge No.2, Bhilwara in Criminal Appeal No.15/2018 affirming the judgment dated 15.12.2017 passed by the learned Special Judicial Magistrate, NI Act Cases, No.2, Bhilwara in Criminal Case No.1695/2016, whereby, the petitioner was convicted for the offence under section 138 of the Negotiable Instruments Act and was sentenced to one year's simple imprisonment and further ordered to pay compensation to the tune of Rs.7,50,000/- to the complainant.

3. Briefly stated, facts of the case are that the petitioner was prosecuted for committing an offence under section 138 of the Negotiable Instruments Act. After completion of trial, he was found guilty and thus, was convicted and sentenced by the learned trial Court. The judgment of conviction was assailed by the petitioner by way of filing a criminal appeal but the same has been dismissed vide judgment dated 24.09.2019, hence the present revision petition has been filed.

4. The parties have entered into a compromise and have settled the dispute amicably. Copy of Compromise deed dated 13.01.2022 has been placed on record. Parties have resolved the dispute since the petitioner has paid the due amount satisfying the respondent-claimant. As per section 147 of the N.I. Act, an offence under section 138 of the N.I. Act is compoundable without taking permission of the court. Thus, it is jointly prayed that the judgment of conviction as well as the order of appeal be quashed and set aside.

5. Heard learned counsel for the parties. Perused the material available on record and gone through both the judgments as well as the compromise deed wherein it is recited that the parties have resolved their dispute amicably and the complainant does not wish to continue the proceedings.

6. Since the precious time of the court has been wasted in the entire criminal proceedings and now, the parties have arrived at a compromise at a belated stage, therefore, it is deemed appropriate to impose cost of proceedings upon the accused.

7. In view of the compromise arrived at between the parties and the statutory provision in this regard, the revision petition is allowed. The judgment of conviction and order of sentence dated 15.12.2017 passed by the learned Special Judicial Magistrate, NI Act Cases, No.2, Bhilwara in Criminal Case No.1695/2016 and the judgment in appeal dated 24.09.2019 passed by the learned Additional Sessions Judge No.2, Bhilwara in Criminal Appeal No.15/2018 are quashed and set aside. The accused is acquitted from the charges. However, since the dispute has been resolved after long lapse of time and the precious time of the Courts have been spent by the parties, thus, in light of the Supreme Court Judgment in the case of Damodar S. Prabhu v. Sayed Babulal H. , reported in AIR 2010 SC 1907 it is deemed appropriate to impose a cost of Rs.25,000/- upon the petitioner. The petitioner is directed to deposit a cost of Rs.25,000/- with the District Legal Services Authority, Bhilwara. It is further made clear that if the cost is not deposited by t

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