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.

ORDER :

Heard Mr.S. Sathish Rajan, learned counsel appearing for the Revision Petitioner and Mr.R. Chakkaravarthy, learned counsel appearing for the respondent 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.438 of 2019, dated 19.03.2021 by the learned VI Addl. Sessions Judge, City Civil Court, Chennai, confirming the conviction and sentence made in C.C.No.6433 of 2016, dated 27.11.2019 passed by the learned XIX Metropolitan Magistrate, Chennai Corporation Complex, Allikulam, Chennai 600 003

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 six months and also directed him to pay a compensation of Rs.70,000/-/-, failing which, to undergo SI for two 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 businessman, borrowed a sum of Rs.70,000/- as a hand loan on 10.01.2016 from the respondent to meet out his urgent needs. He promised to repay the said amount within three months. Since the revision petitioner did not repay the amount as promised by him, the respondent demanded him to repay the same.

(ii) to discharge his liability towards the hand loan borrowed by him, the revision petitioner issued a cheque bearing No.21665 for a sum of Rs.70,000/-dated 08.07.2016 drawn on Allahabad Bank, V.P. Colony Branch, Chennai 600 023, in favour of the complainant and the same was presented by the respondent for encashment through his Banker viz., Canara Bank, Purasaiwalkam Branch, Chennai on 08.07.2016.

(iii) The cheque issued by the Revision Petitioner was returned with an endorsement 'insufficient funds' through return memo dated 11.07.2016.

(iv) Hence the respondent issued a legal notice dated 26.07.2016 calling upon the revision petitioner to pay the dishonoured cheque amount within 15 days.

(v) On receipt of notice, since the respondent neither sent a reply, nor paid the cheque amount, a complaint for the offence of section 138 of the Negotiable Instruments Act has been filed by the respondent against the revision petitioner in C.C.No.6433 of 2016 before the XIX Metropolitan Magistrate, Chennai Corporation Complex, Allikulam, Chennai 600 00.

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 six months and also directed him to pay a compensation of Rs.70,000/- to the complainant, failing which, to undergo SI for two months. The conviction and sentence imposed by the trial court was also confirmed by the First Appellate Court.

7. Aggrieved by the judgment, the Revision Petitioner has preferred the appeal in C.A.No.438 of 2019 before the VI Additional Sessions Judge, City Civil Court at Chennai and the first appellate court dismissed the appeal vide judgment and order dated 19.03.2021 by confirming the judgment of conviction and sentence imposed by the trial court in C.C.No.6433 of 2016 and it directed to secure the Revision Petitioner to undergo the sentence and to pay the compensation amount.

8. Challenging the conviction