The court affirmed that offences under the Negotiable Instruments Act are compoundable at any stage, including post-conviction, prioritizing compensation over punishment.

ORDER :

Heard Mr.P. Kannan, learned counsel appearing for the Revision Petitioner and Mr.A.Tamilarasan, learned counsel appearing for the respondents and also this Court has taken the assistance of Mr.A.Gopinath, learned Govt. Advocate (crl.side).

2. The instant Criminal Revision Case has been filed challenging the conviction and sentence passed in C.A.No.52 of dated 11.12.2020 by the learned Addl. District (Fast Track) Court, Mettur, confirming the conviction and sentence made in S.T.C.No.327 of 2020, dated 01.07.2020 passed by the learned Judicial Magistrate-I, Mettur.

3. The learned trial Judge has convicted the Revision Petitioner/accused under section 138 of Negotiable Instruments Act and sentenced him to undergo SI for a period of one year and also directed him to pay a compensation of Rs.3,00,000/- within a period of two months, failing which, to undergo SI for six months. The conviction and sentence imposed by the trial court was also confirmed by the First Appellate Court.

4. The facts leading to filing of this Criminal Revision Case is as follows;

(i)The revision petitioner, who is a family friend of the respondent borrowed a sum of Rs.3,00,000/- from the respondent herein on 06.12.2015 as a hand loan in order to meet out his business expenses

(ii) When the respondent demanded repayment of loan, the revision petitioner issued a cheque bearing No.791065 dated 05.02.2016 for a sum of Rs.3,00,000/- drawn on ICICI Bank, Tiruppur Branch in favour of the respondent.

(iii) Thereafter, when the said cheque was presented by the respondent through his Banker viz., ICICI Bank Limited, Mettur Branch for encashment, the same was dishonoured and returned with an endorsement 'Funds Insufficient' on the very same day.

(iv) Hence the respondent issued a legal notice dated 18.02.2016 calling upon the revision petitioner to pay the dishonoured cheque amount within 15 days and the same was returned to the respondent advocate on 01.03.2017 with an endorsement 'intimation given, door locked'.

(v) Since the revision petitioner being well aware of the legal notice, neither replied for the same and nor paid the cheque amount to the respondent, he filed a complaint for the offence of section 138 of the Negotiable Instruments Act against the revision petitioner in STC.No.327 of 2016 before the Judicial Magistrate No.I, Mettur.

5. After recording the sworn statement of the respondent and after being satisfied that prima facie case has been made out to proceed further against the Revision Petitioner for the offence under section 138 of NI Act, the trial Court has issued summon to the Revision Petitioner. On the appearance of the Revision Petitioner, copies have been furnished and the substance of allegation has been put to him. The Revision Petitioner has denied the allegation and has claimed to be tried.

6. After considering the arguments, the learned trial court has found the Revision Petitioner guilty of the offence under section 138 of the Negotiable Instruments Act and the Revision Petitioner has been convicted and sentenced to undergo SI for a period of one year and also directed him to pay a compensation of Rs.3,00,000/- within a period of two months, failing which, to undergo SI for six months.

7. Aggrieved by the judgment, the Revision Petitioner has preferred the appeal in C.A.No.52 of 2020 before the Addl. District (Fast Track) Court, Mettur and the first appellate court dismissed the appeal vide judgment and order dated 11.12.2020 by confirming the judgment of conviction and sentence imposed by the trial court in STC.No.327 of 2020 and it directed to secure the Revision Petitioner to undergo the sentence and to pay the compensation amount. Challenging the conviction and sentence passed by the both courts below, the Revision Petitioner has preferred the present Criminal Revision Case before this Court.

8. During the pendency of the present Criminal Revision, the parties have entered into a Compromise Deed, dated 14.12.2024 which is taken on record