PUNJAB & HARYANA HIGH COURT
Nirmaljit Kaur, J.
Subash Nagpal and Another - Appellant
Versus
Neeraj Kakkar - Respondent
CRM M-2457 of 2011
Decided On : 16-02-2012
Compounding - Negotiable Instrument Act - The court quashed the proceedings against the petitioners in a complaint filed under Section 138 Negotiable Instrument Act, 1881, as the accused was willing to pay the cheque amount and interest, and the insistence of the complainant for an adjudication on merits by refusing to accept the amount was considered an abuse of the process of the Court.
Fact of the Case:
The petitioner appeared before the court and filed an application for compounding the offence under the Negotiable Instrument Act, offering to pay the entire cheque amount and interest. The complainant refused to accept the amount and insisted on proceeding with the complaint.
Finding of the Court:
The court found that the continuation of the proceedings was a misuse of the process of law and quashed the complaint and summoning order, subject to the condition that the petitioners deposit the consolidated amount of the dishonoured cheque along with interest at the rate of 10% within 10 days.
Issues: Misuse of the process of law, Compounding of the offence, Refusal to accept the cheque amount
Ratio Decidendi: The court held that the insistence of the complainant for an adjudication on merits by refusing to accept the cheque amount amounted to an abuse of the process of the Court, and quashed the proceedings in the interest of justice.
Final Decision: The petition was allowed, and the proceedings in the complaint and summoning order were quashed, subject to the condition of depositing the cheque amount and interest within 10 days.
2. Admittedly on 28.9.2010, petitioner No.1 through his counsel had appeared before the learned Judicial Magistrate Ist Class, Ferozepur and without prejudice to the challenge of the complaint on merits, filed an application under Section 147 of the Negotiable Instrument Act, 1881, towards the compounding of the offence. It is duly informed by the learned counsel for the petitioner that petitioner is willing to pay the entire cheque amount and also offered to pay the same vide cheque bearing No.021353 drawn from HDFC Bank, K.G. Marg, New Delhi for an amount of Rs.19,394/-. However, the complainant refused to accept the said amount and stated that he would like to proceed further with the said complaint.
3. Accordingly, the petitioner has filed the present petition in which notice of motion was issued vide order dated 27.1.2011 and the further proceedings before the trial Court were stayed on the contention of the learned counsel for the petitioner that a cheque of Rs.19394/- had been submitted in the Court on 28th September 2010 and the complainant has refused to accept the same. Thereafter, upon service, learned counsel for the respondent took time to seek instructions qua compounding of the offence in case payment of interest from the date the cheque in question was dishonoured uptil the date when it was deposited before the trial Court is also paid by the petitioner.
4. Today learned counsel for the petitioner on instructions from his client submitted that the petitioner is ready to make the payment at the rate of 10% interest from the date the cheque in question was dishonoured uptil the date when it was deposited before the trial Court.
5. Learned counsel for the respondent although has no objection to the compunding of the offence but stated that respondent would be satisfied in case petitioners pay litigation expenses as well.
6. This Court does not think it proper to burden the petitioner with the said litigation expenses. The petitioner had already submitted the disputed cheque amount in the Court on 28th September 2010. It was the respondent, who had refused to accept the same and proceeded to pursue the said complaint and rather forced the petitioner to approach this Court.
7. This Court in Criminal Misc. No.M-23421 of 2008 decided on 11.11.2010 titled as Balbir Singh v. M/s Aggarwal Mfg. Co. held as under:
“The provisions of Section 147 of the Act, which makes all the offences under the Act compoundable and the law laid down to the effect that compounding of the offences under the Act would be permissible even after conviction would indicate the manner in which the Courts should deal with an offence allegedly committed under the Act. In a situation, where the accused is ready and willing to pay the amount of the cheque in question, the insistence of the complainant for an adjudication on merits by refusing to accept the amount, itself, would amount to an abuse of the process of the Court.”
8. The petitioners herein was willing to pay the entire chequeamount and also offered to pay the same vide cheque bearing No.021353 drawn from HDFC Bank, K.G. Marg, New Delhi for an amount of Rs.19,394/- as early as on the second date of hearing before the trial Court as had also offered before this Court to make the payment of interest at the rate of 10% from the date the cheque in question was dishonoured uptil the date when it was deposited before the trial Court.
9. In view of the facts narrated above, this Court is of the opinion that continuation of the present proceedings before the trial Court are nothing but misuse of the process of law
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