A compromise under Section 147 of the NI Act allows for setting aside a conviction for dishonor of cheque, provided the complainant does not wish to proceed and costs are deposited.

ORDER :

MANOJ KUMAR GARG, J.

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

2. This revision petition has been filed against the judgment dated 17.02.2025 passed by the learned Additional Sessions Judge No.6, Jodhpur Metropolitan in Criminal Appeal No.363/2023 (N.C.V. No.363/2023), by which, the appeal filed by the petitioner was dismissed and the judgment dated 31.07.2023 passed by the learned Special Metropolitan Magistrate (N.I. Act Cases) No.6, Jodhpur Metropolitan in Criminal Original Case No.394/2016 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.2,00,000/-. In default of payment of fine, the petitioner was sentenced to undergo two months’ simple imprisonment. 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.

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

4. I have considered the arguments advanced by counsel for the parties.

5. 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 Vs. 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).

6. Accordingly, the conviction and sentence of imprisonment awarded to the petitioner for offence under Section 138 NI Act vide judgment dated 17.02.2025 and 31.07.2023 are 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.

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

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