Amicable settlement of disputes under Section 138 of the N.I. Act may justify the quashing of proceedings under Section 174-A of the IPC.

JUDGMENT

Harsimran Singh Sethi, J. (Oral) - By this common order, the above mentioned two petitions are being disposed off as both the petitions involve the same question of law.

2. The prayer of the petitioner(s) in these petitions is for quashing of order dated 31.10.2017 passed by the Judicial Magistrate First Class, Pehowa in complaint No.96 of 2015 dated 20.07.2015, declaring the petitioner as proclaimed person as well as FIR No.97 dated 20.02.2018 registered under Section 174-A of the IPC at Police Station Pehowa, District Kurukshetra and order dated 07.09.2019 passed by the Judicial Magistrate First Class, Faridabad in case No.10789/31.05.2016 & NACT No.2399/2016 declaring the petitioner as proclaimed person as well as FIR No.318 dated 18.09.2019 registered under Section 174-A of the IPC at Police Station Old Faridabad, District Faridabad.

3. Learned counsel for the petitioner(s) submits that parties have already amicably compromised their dispute and keeping in view the said compromise, the original complaint filed by the complainant under Section 138 of the Negotiable Instruments Act, 1881 ( in short, N.I. Act') has already been withdrawn and therefore, the proceedings, which have been initiated against the petitioners declaring them proclaimed persons and thereafter, registration of an FIR against them under Section 174-A of the IPC during the pendency of the complaint, which now stands withdrawn, may kindly be quashed.

4. Learned counsel for the petitioner(s) further submits that the petition with a similar prayer came up for consideration before a Coordinate Bench of this Court and while deciding CRM-M-16101-2020 titled as Jagat Singh vs. State of Haryana on 11.01.2021, keeping in view the law cited therein, Coordinate Bench held that where the main complaint filed under Section 138 of the N.I. Act stands withdrawn on the basis of amicable settlement of dispute between the parties, continuation of proceedings under Section 174-A of the IPC including the order declaring the accused as proclaimed person, shall be nothing but an abuse of process of law and the said petition was allowed. Learned counsel for the petitioner(s) submits that as the prayer of the petitioner(s) in these petitions being similar in nature to that in Jagat Singh's (supra), same may kindly be allowed and orders declaring the petitioners proclaimed persons and subsequent registration of an FIR under Section 174-A of the IPC on the basis of the said order, may kindly be quashed.

5. Learned State counsel submits that though, the matter has been amicably settled between the parties in these petitions and the complaints filed by complainant under the N.I. Act, have already been withdrawn but, it is the conduct of the petitioner(s), which has led them to the present situation, wherein, they have been declared initially as proclaimed persons and thereafter, an FIR under Section 174-A of the IPC has been registered against them, though, learned State counsel concedes the proposition of law that a Coordinate Bench of this Court in a somewhat similar facts and circumstances, has already accepted a plea, which is similar to the one raised by the petitioners in these petitions that once, the parties have amicably settled their dispute relating to the N.I. Act, the proceedings which arose during the pendency of the said complaint can be quashed, keeping in view the facts and circumstances of a case.

6. I have heard learned counsel for the parties and have gone through the record with their able assistance.

7. In the present petitions, it is the conceded position that the dispute between the parties have been amicably settled by the parties and the complaints filed by the complainant under Section 138 of the N.I. Act, have already been withdrawn by the complainant after the payment was made by the accused to the complainant to his entire satisfaction. The proceedings which have been challenged in the present petitions i.e. order declaring the petitioners proclaimed