IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Vikram Aggarwal, J.
Sarda Alloys Pvt. Ltd. And others - Petitioners - Appellant
Versus
Bansal Alloys & Metal Pvt. Ltd. - Respondent - Respondent
CRM-M-20870 of 2023
Decided On : 12-05-2023
Compounding - Negotiable Instruments Act - Section 138 - 147 - 143 - 258 - Summary: The court dismissed the petition challenging the rejection of the application for compounding the offence under Section 138 of the Negotiable Instruments Act, 1881. The court referred to the judgments of the Hon’ble Supreme Court in M/s Meters and Instruments Private Limited & Anr. versus Kanchan Mehta 2017 AIR (SC) 4594 and JIK Industries Limited & Ors. vs. Amarlal V. Jumani and Another 2012 (1) R.C.R. (Criminal) 822 to emphasize the requirement of consent of the complainant for compounding the offence. The court also cited M/s Meters and Instruments Private Limited’s case to highlight the power of the court to close the proceedings upon payment of the cheque amount with interest and costs. The court held that without the consent of the complainant, compounding cannot be permitted.
Fact of the Case:
The respondent-complainant filed a complaint under Section 138 of the Negotiable Instruments Act, 1881 against the petitioners for dishonour of a cheque amounting to Rs.20,368. The petitioners moved an application for compounding of the offence, which was dismissed by the trial Court and the revision petition challenging this decision was also dismissed.
Finding of the Court:
The court found that without the consent of the complainant, the offence cannot be compounded. The conduct of the petitioners, owing a substantial sum and issuing various dishonoured cheques, was also considered. The court held that the application for compounding could not be accepted without the consent of the complainant.
Issues: The main issue was whether the rejection of the application for compounding the offence under Section 138 of the Negotiable Instruments Act, 1881 was justified.
Ratio Decidendi: The court emphasized the requirement of consent of the complainant for compounding the offence under Section 138 of the Negotiable Instruments Act, 1881. The court also highlighted the power of the court to close the proceedings upon payment of the cheque amount with interest and costs.
Final Decision: The petition challenging the rejection of the application for compounding the offence was dismissed.
VIKRAM AGGARWAL, J.
1. The present petition, preferred under Section 482 Cr.P.C., assails the order dated 14.02.2023 (Annexure P-1), passed by the Sessions Judge, Fatehgarh Sahib, vide which the criminal revision filed by the petitioners against the order dated 14.11.2022 (Annexure P-4) was dismissed.
2. The respondent-complainant filed a complaint under Section 138 of the Negotiable Instruments Act, 1881 (for short ‘the N.I.Act’) read with Section 420 IPC against the present petitioners on account of dishonour of a cheque amounting to Rs.20,368/-. During the pendency of the complaint, the petitioners moved an application dated 02.06.2022 (Annexure P-3) for compounding of the offence and for consequential discharge of the petitioners. It was the stand of the petitioners that without going into the merits of the case, they were ready to deposit the cheque amount. Reply to the said application was filed but vide order dated 14.11.2022 (Annexure P-4), the trial Court dismissed the application. A revision petition challenging this decision was preferred which was dismissed vide judgment dated 14.02.2023 (Annexure P-1), leading to the filing of the present petition.
3. Learned counsel for the petitioners has submitted that both the Courts below erred in dismissing the application for compounding the offence as well as the revision petition filed by the petitioners. It has been submitted that when the petitioners were willing to pay the entire cheque amount alongwith interest etc., as determined by the Court, there was no occasion for the Court to reject the same. Reliance has been placed upon the judgment of Hon’ble Supreme Court in M/s Meters and Instruments Private Limited & Anr. versus Kanchan Mehta 2017 AIR (SC) 4594.
4. I have considered the submissions made by learned counsel for the parties.
5. Section 147 of the N.I.Act states that every offence punishable under the N.I.Act shall be compoundable. This provision was interpreted by the Hon’ble Supreme Court of India in the case of JIK Industries Limited & Ors. vs. Amarlal V. Jumani and Another 2012 (1) R.C.R. (Criminal) 822 wherein it was held by the Hon’ble Apex Court that the offences under the N.I.Act have been made compoundable but the main principle of such compounding, namely, the consent of the person aggrieved or the person injured or the complainant cannot be wished away nor the same can be substituted by virtue of Section 147 of the N.I.Act. While holding so, the Hon’ble Supreme Court of India laid down as under:-
National Insurance Company Limited vs. Pranay Sethi
JIK Industries Limited & Ors. vs. Amarlal V. Jumani and Another
M/s Meters and Instruments Private Limited & Anr. versus Kanchan Mehta
M/s Anant Tools (Unit No.II) Pvt. Ltd. and others versus M/s Anant Tools Pvt. Ltd., Jalandhar
AI
An offence under Section 138 of the Negotiable Instruments Act can only be compounded with the consent of the complainant, as reiterated by the court.
The main legal point established in the judgment is that in cases of dishonour of cheques, the compensatory aspect of the remedy should be given priority over the punitive aspect. The court also emph....
The compounding of the offence under Section 138 N.I. Act is permissible without the consent of the complainant if the accused has been duly compensated, and the Court can use its inherent powers und....
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