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2024 Supreme(Raj) 1249

IN THE HIGH COURT OF RAJASTHAN
Manoj Kumar Garg, J.
Ganga Ram – Petitioner
Versus
State of Rajasthan and Others – Respondents
S.B. Criminal Revision Petition No. 1445 of 2023
Decided On : 07-02-2024

Advocates:
Advocate Appeared:
For the Petitioner: Raghunath Bishnoi
For the Respondents: S.S. Rajpurohit, Mohanlal Khatri

Compromise between parties under Section 147 of the N.I. Act allows for setting aside of conviction, subject to costs as per Supreme Court guidelines.

Headnote:(A) Limitation Act, 1963 - Section 5 - Negotiable Instruments Act, 1881 - Section 138 - Delay in filing criminal revision petition condoned - Compromise between parties acknowledged - Conviction and sentence set aside based on settlement - Cost imposed as per Supreme Court guidelines. (Paras 1-12)

(B) Compromise - The court recognized the settlement between the petitioner and the complainant, allowing the revision petition and setting aside the conviction and sentence, subject to the payment of costs. (Paras 8-12)

Facts of the case:
The petitioner was convicted under Section 138 of the N.I. Act and sentenced to six months imprisonment and a fine. The parties reached a compromise, leading to the request for setting aside the sentence.

Findings of Court:
The court acknowledged the compromise and set aside the conviction and sentence, imposing a cost of 15% of the cheque amount to be deposited with the Rajasthan State Legal Services Authority.

Issues: The main issue was whether the conviction could be set aside based on the compromise reached between the parties.

Ratio Decidendi: The court held that under Section 147 of the N.I. Act, a compromise can lead to the setting aside of a conviction, provided costs are imposed as per the Supreme Court's decision in Damodar S. Prabhu v. Sayed Babalal H.

Result: Revision petition allowed.

ORDER :

1. An application (1/23) under Section 5 of the Limitation Act for condoning the delay in filing the criminal revision petition has been filed by the applicant-petitioner.

2. For the reasons and grounds mentioned in the application, the application is allowed.

3. Delay in filing criminal revision petition is, hereby, condoned.

4. Another application (2/23) has been filed for dispensing with the requirement of filing of certified copy of the order/judgment dated 27.10.2021 as a photostat copy has already been filed.

5. For the reasons mentioned in the application, the same is allowed and the requirement of filing of certified copy of the order dated 27.10.2021 is hereby dispensed with.

6. The matter is being heard and decided today itself.

7. This revision petition has been filed against the judgment dated 05.06.2023 passed by the learned Additional Sessions Judge No.5, Jodhpur Metropolitan in Criminal Appeal No.215/2021 (NCV No.215/2021) by which, the appeal filed by the petitioner was dismissed and the judgment & order dated 27.10.2021 passed by the learned Special Metropolitan Magistrate (N.I. Act Cases) No.6, Jodhpur Metropolitan in Criminal Case No.17/2017 (NCV No.2704/2016) for convicting and sentencing the petitioner for offence under Section 138 N.I. Act has been affirmed. The petitioner was sentenced to undergo six months simple imprisonment along with fine in the sum of Rs. 80,000/- and in default of payment of fine, the petitioner was sentenced to undergo two months simple imprisonment.

8. Learned counsel for the petitioner submits that the petitioner and complainant-respondent No.2 have entered into a compromise in the spirit of Lok Adalat and the respondent No.2 has received all the amount from the petitioner and does not want to proceed with the matter, therefore the sentence of imprisonment awarded to the petitioner may be set aside.

9. Learned counsel for respondent No.2 concurs with the facts stated by the counsel for the petitioner.

10. I have considered the arguments advanced by counsel for the parties and perused the material available on record.

11. Having considered the facts and circumstances of the case, since the parties have settled their dispute and complainant respondent No.2 has accepted the sum towards full and final settlement of dispute 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 the Hon'ble Apex Court in the case of Damodar S. Prabhu v. Sayed Babalal H. reported in 2010 (5) SCC 663, the sentence awarded to the petitioner for offence under Section 138 NI Act is liable to be set aside. However, since the 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 light of the decision rendered by the Hon'ble Apex Court in the case of Damodar S. Prabhu (supra).

12. Accordingly, the conviction and sentence of imprisonment awarded to the petitioner for offence under Section 138 NI Act vide judgments dated 05.06.2023 and 27.10.2021 is hereby set aside on the basis of the aforesaid compromise subject to deposition of cost of 15% of the cheque amount. The cost shall be deposited by the petitioner before the Rajasthan State Legal Services Authority, Jodhpur within a period of one month from today. In case, the cost is not deposited by the petitioner before the Rajasthan State Legal Services Authority, Jodhpur within the stipulated period, the revision petition may be listed before this Court for passing appropriate orders.

13. The revision petition is allowed in the above terms. Suspension of sentence application also stands decided accordingly.

14. A copy of this order be sent to the Rajasthan State Legal Services Authority, Jodhpur.

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