The court can permit the compounding of a cheque dishonour case under Section 138 of the Negotiable Instruments Act if the entire compensation amount is paid to the complainant and the complainant agrees to compound the matter.

JUDGMENT :

Vivek Singh Thakur, J.

1. Present revision petition has been filed assailing judgment passed by learned Sessions Judge, Shimla H.P. in Cr. Appeal No. 36-S/10 of 2016, dated 26.4.2017, whereby judgment and order of conviction and sentence passed by learned Judicial Magistrate 1st Class, Court No. 5, Shimla dated 5.5.2016 in complaint No. 144/3 of 2015 convicting and sentencing the petitioner/accused to undergo simple imprisonment for a period of six months and to pay a fine of Rs. 65,000/- has been affirmed.

2. Petitioner, present in Court, vide separate statement placed on record, has stated that he had borrowed the money from respondent, which now stands paid. He has stated that out of total amount of compensation i.e. Rs. 65,000/- awarded by the Courts below, he had paid Rs. 10,000/- in cash, whereas remaining amount of Rs. 55,000/- has been deposited by him in Registry of this Court in two installments i.e. Rs. 17,000/- and Rs. 38,000/- and he does not want to contest the petition and intends to compound the matter. He has further stated that he has also deposited Rs. 7500/- i.e. 15% of cheque amount payable to H.P. State Legal Services Authority. He has also stated that amount deposited by him be released in favour of respondent and he may be acquitted after compounding the case and further stated he has made this statement out of his free will and consent and also without any threat, coercion or pressure etc. Separate statement of counsel, appearing on behalf of complainant, has also been recorded, whereby she has stated that she has instructions to compound the matter in case entire payment is released in favour of respondent. She has stated that as petitioner has agreed for release of remaining amount deposited by him in favour of respondent, she has no objection on behalf of respondent for compounding the case and this compromise arrived at between the parties is out of free will, consent and also without any threat, coercion or pressure etc and respondent has no objection in compounding the case.

3. Consequently, respondent/complainant is permitted to withdraw the complaint and matter is compounded and complaint arising out of dishonour of cheque under Section 138 of Negotiable Instrument Act is treated to be withdrawn and judgments of conviction and sentence passed by learned Courts below are quashed and set aside. Petitioner/accused is acquitted of the accusation framed against him.

4. Registry is directed to release the amount of Rs. 55,000/- deposited by the petitioner Mohan, in favour of respondent, by remitting the same along with interest in the account of respondent immediately on supply of account number by or on behalf of the respondent.

5. In present case, the cheque amount was of Rs. 54,600/- but the petitioner/accused has paid the entire compensation amount to the respondent and the matter has been compounded and as per report of Registry, petitioner has also deposited Rs. 7500/- i.e. about 15% of cheque amount payable to the H.P. State Legal Services Authority.

6. Petition stands disposed of, in the aforesaid terms, so also the pending applications, if any. Copy of this judgment be also sent to H.P. State Legal Services Authority, Shimla.