Compounding of criminal complaints under Section 147 of the Negotiable Instruments Act is permissible, leading to acquittal if both parties mutually agree to settle the matter.

ORDER :

M. NIRMAL KUMAR, J.

The petitioner was convicted by judgment dated 22.05.2018 by the learned Judicial Magistrate, Fast Track Court-II (Magisterial Level), Erode(trial Court) in S.T.C.Nos.459, 462, 461 & 460 of 2016 for offence under Section 138 of Negotiable Instruments Act, 1881 and sentenced to undergo one year Simple Imprisonment and to pay a fine of Rs.5,000/- in default to undergo Simple Imprisonment for two months. Challenging the same, the petitioner preferred an appeal before the learned II Additional Sessions Judge, Erode (lower appellate Court) in Crl.A.Nos.184, 187, 186 & 185 of 2018 and the same was dismissed by judgment dated 01.11.2018 confirming the conviction of the trial Court. Aggrieved over the same, the present Criminal Revision Cases are filed.

2.Gist of the case in S.T.C.No.459 of 2016 is that the respondent/complainant and the petitioner/accused are known to each other for several years. The respondent was doing business of manufacturing Nut Plates in the name of M/s.Chandra Traders and the petitioner/accused was doing same business in the name of M/s.Sri Areca Nut Plate Industries. In the month of August 2013, the petitioner approached the respondent to support in all the fields like funding, supply of machineries and supply of raw materials and the petitioner induced the respondent and offered him to pay 30% of profit amount and also agreed to repay the loan amount with interest at the rate of 18% per annum. Believing the same, the respondent supplied nut plates manufacturingmachines and supplied raw materials to the worth of Rs.7,00,000/- to the petitioner. The petitioner also borrowed money from the respondent in the years 2013 & 2014 to the tune of Rs.6,53,000/-. Thereafter, the petitioner failed to pay any percentage of profit amount to the respondent and also dragged to repay the loan amount borrowed. After negotiation, the respondent has agreed to receive a sum of Rs.12,00,000/- from the petitioner as full and final settlement and in discharge of the same, the petitioner issued eight cheques for Rs.1,00,000/- each and two cheques for Rs.2,00,000/- each (totally Rs.12,00,000/-) drawn on Kaveri Grameena Bank, N.Kotte, Gubbi Taluk, Tumkur, in favour of the respondent. When the respondent presented the above said cheques for encashment in State Bank of Mysore, Erode, the same got dishonoured on 24.06.2015 for the reason “Funds Insufficient” which was informed to the respondent on 02.07.2015. The cheque pertaining to this case is cheque No.065597 for Rs.1,00,000/- dated 20.05.2015. Thereafter, the respondent issued a legal notice to the petitioner on 08.07.2015 to settle the entire cheque amount within 15 days. But the petitioner neither made any reply to the notice nor returned the cheque amount. Hence, the complaint under Section 138 of Negotiable Instruments Act, 1881 was filed.

3.Gist of the case in S.T.C.No.462 of 2016 is that therespondent/complainant and the petitioner/accused are known to each other for several years. The respondent was doing business of manufacturing Nut Plates in the name of M/s.Chandra Traders and the petitioner/accused was doing same business in the name of M/s.Sri Areca Nut Plate Industries. In the month of August 2013, the petitioner approached the respondent to support in all the fields like funding, supply of machineries and supply of raw materials and the petitioner induced the respondent and offered him to pay 30% of profit amount and also agreed to repay the loan amount with interest at the rate of 18% per annum. Believing the same, the respondent supplied nut plates manufacturing machines and supplied raw materials to the worth of Rs.7,00,000/- to the petitioner. The petitioner also borrowed money from the respondent in the years 2013 & 2014 to the tune of Rs.6