IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
Sandeep Sharma, J.
Hari Chand - Petitioner
Versus
Sh. Deep Saini & Anr. – Respondents
Cr.MP No. 32 of 2023 in Cr. Revision No.117 of 2020
Decided On : 11-01-2023
Section 138 of the Negotiable Instruments Act - Compounding of Offence - Section 147 of the Act
Fact of the Case:
The complainant alleged that the accused issued a dishonored cheque and failed to make the payment, leading to a complaint under Section 138 of the Act. The accused was convicted and sentenced, and subsequent appeals were dismissed. However, the parties entered into a compromise, and the accused sought compounding of the offence.
Finding of the Court:
The court found that it had the power to compound the offence under Section 147 of the Act, even after upholding the judgment of conviction and order of sentence. It relied on previous judgments and legal provisions to support its decision.
Issues: The main issue was whether the court could proceed to compound the offence after upholding the conviction and sentence.
Ratio Decidendi: The court held that it had the power to compound the offence under Section 147 of the Act, even after upholding the judgment of conviction and order of sentence. It cited previous judgments and legal provisions to support its decision.
Final Decision: The court allowed the compounding of the offence, recalled the previous judgments of conviction and order of sentence, and acquitted the accused.
JUDGMENT :
Sandeep Sharma, J.
By way of instant application filed under Section 482 Cr.P.C read with Section 147 of the Negotiable Instruments Act (for short ‘Act’), prayer has been made on behalf of the applicant-accused for compounding of the offence alleged to have been committed by him under Section 138 of the Act. No reply is intended to be filed on behalf of the non-applicant/respondent. Mr. T.S.Chauhan, learned counsel representing the respondent, fairly states that after passing of judgment dated 24th November, 2021 passed by this Court, whereby judgment of conviction and order of sentence recorded by learned court below came to be upheld, parties have entered into the compromise, whereby respondent-complainant has received the entire amount of compensation and as such, prayer made in the instant application can be accepted.
2. Precisely, the facts of the case, as emerge from the record, are that respondent No.1/Complainant (hereafter referred to as the ‘complainant’) instituted a complaint under Section138 of the Act in the Court of learned Additional Chief Judicial, Court No.1, Sundernagar, District Mandi, H.P., alleging therein that he had advanced sum of Rs. 1,00,000/- to the complainant, who with a view to discharge his liability issued cheque No. 831354 dated 1.8.2010 (Ext. CW-1/A) for Rs.1,00,000, However, the fact remains that the cheque on its presentation was dishonoured with the endorsement, “exceeds arrangement” vide memo, Ext. CW-2/A. After having received memo from the bank concerned, complainant served accused with a legal notice Exhibit CW-3/A, calling him to make good the payment within the time stipulated in the notice, but since accused failed to make good the payment within the stipulated in the legal notice, complainant filed complaint under S.138 of the Act in the competent court of law, which subsequently on the basis of the evidence adduced on record by the parties, held accused guilty of having committed the offence punishable under Section 138 of the Act and accordingly convicted and sentenced him to undergo simple imprisonment for one year and pay compensation to the tune of Rs. 1,00,000/- to the respondent-complainant.
3. Being aggrieved and dissatisfied with the aforesaid judgment of conviction and order of sentence recorded by learned trial Court, accused preferred an appeal in the Court of learned Additional Sessions Judge, Sundernagar, but same was dismissed on 20.12.2019. Being aggrieved and dissatisfied with the aforesaid judgment passed by learned Additional Sessions Judge, Sundernagar, applicant- accused preferred criminal revision No.117 of 2020 in this Court, which also came to be dismissed vide judgment dated 24.11.2021
4. After passing of aforesaid judgment dated 24.11.2021, applicant-accused compromised the matter with the respondent/ complainant, whereby entire amount of compensation, as agreed interse parties, has been paid to the respondent-complainant. In the aforesaid background, applicant-accused has approached this Court in the instant application filed under Section 482 Cr.P.C, praying therein for compounding of the offence under Section 147 of the Act.
5. Though, factum with regard to receipt of entire amount of compensation stands duly acknowledged with the statement of Sh. T.S. Chauhan, learned counsel representing the non-applicant-respondent as well as compromise placed on record with the application but while considering the prayer made in the application, the question which needs to be decided at first instance is that “whether after upholding the judgment of conviction and order of sentence passed by learned court below, this Court can proceed to compound the offence or not?.”
6. This Court vide judgment passed in Cr.MP No. 1197 of 2017 in Cr. Revision No. 394 of 2015 titled Gulab Singh v. Vidya Sagar Sharma, while relying upon judgment of Hon'ble Apex Court as well as other Constitutional Courts has already held that court, while exercising power under Section 147 of A
Damodar S. Prabhu v. Sayed Babalal H.
Kunha Yammed and others versus State of Kerala and others; (2000) 6 SCC 359
Kunhayammed Vs. State of Keral (2000) 6 SCC 359
V.M. Salgaocar & Bros. Pvt. Ltd. Vs. Commissioner of Income Tax
The court established that it had the power to compound the offence under Section 147 of the Act, even after upholding the judgment of conviction and order of sentence.
The court established that it had the power to compound the offence under Section 147 of the Negotiable Instruments Act, even after upholding the conviction and sentence.
Point of Law : Court finds no impediment in accepting prayer made on behalf of applicant through instant application for compounding of the offence.
Dishonour of cheque – Court can proceed to compound offence punishable under Section 138 of Negotiable Instruments Act, 1881, after recording of conviction and sentence.
Dishonour of cheque – Court, while exercising power under Section 147 of N.I. Act can proceed to compound offence even in those cases where accused stands convicted.
Offence under Section 138 NI Act compoundable post-conviction even after appellate and revisional dismissal, upon compromise and full compensation payment; court may recall upholding judgment under S....
Point of Law : Operation or effect of a general Act can be curtailed by special Act even if a general Act contains a non-obstante clause and as such, provisions contained under Section 320 Cr.P.C. wo....
Offences under Section 138 of the Negotiable Instruments Act are compoundable at any stage, including post-conviction, emphasizing the compensatory nature of the remedy over punitive aspects.
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