The court affirmed the validity of the conviction under the Negotiable Instruments Act while allowing reduction of the sentence based on partial compliance with compensation obligations.

JUDGMENT :

Anoop Chitkara, J.

1. The petitioner, who stands convicted for the commission of an offense punishable under Section 138 of the Negotiable Instruments Act , 1881 ( NIA ), after dismissal of appeal had come up before this Court by filing the present revision petition.

2. The facts are that the petitioner-convict had taken a loan from the respondent/complainant-Chandigarh Schedules Castes, Backward Classes, and Minorities Financial and Development Corporation Ltd, for a sum of Rs. 1 lac under self-employment scheme. In the discharge of the said liability, the petitioner had issued a cheque. When the complainant presented the cheque, it was returned on 02.03.2005 with the memo 'account closed.' Faced with this, the complainant issued a legal notice dated 14.03.2005 demanding the payment of the cheque amount. However, despite service, the petitioner failed to repay the amount, which led to filing a criminal complaint under Section 138 of the Negotiable Instruments Act of 1881.

3. The trial Court took preliminary evidence and found it worth taking cognizance and summoning of the accused. Subsequently, a notice of acquisition was put to the petitioner for the commission of an offense punishable under Section 138 of the NI Act. After completion of the complainant's evidence, the accused did not take any specific stand under Section 313 CrPC, 1973, and his answers were denial simpliciter. Vide judgment dated 07.01.2013, the trial Court convicted the petitioner and sentenced him to undergo imprisonment for six months and to pay compensation of Rs. 1 lac.

4. Feeling aggrieved, the petitioner filed a criminal appeal before the Sessions Court, challenging his conviction and sentence. However, vide judgment dated 06.06.2014, the appeal was dismissed.

5. After that, the petitioner came up before this Court by filing the present criminal revision petition under Section 401 CrPC, 1973.

6. When the matter was listed before a Coordinate Bench of this Court on 18.06.2014, the petitioner's counsel submitted that the petitioner is ready to compound the matter with the respondent and has also handed over a draft of Rs. 55,000/- as a payment to the complainant. However, no application seeking compounding of the offense was filed. After that, on 08.09.2014, a Coordinate Bench of this Court passed the following order:-

'Draft No. 860734 dated 16.06.2014 valuing Rs. 55,000/-has been handed over to counsel for the complainant.

To come up on 04.12.2014 for consideration.

In the meantime, the petitioner is ordered to be released on interim bail to the satisfaction of trial Court.'

7. The matter was sent to Mediation. However, it was returned with observations that no settlement is possible.

8. The petitioner's counsel made the following submissions:

1. Loan taken from the complainant Corporation of Rs. 1 lac. Discharged cheque in question of Rs. 55,000/- and the same is dishonoured vide memo dated 02.03.2005 with the remarks 'account closed'.

2. That cheque amount already paid, vide demand draft dated 16.06.2014 and the same has been encashed.

3. That total sentence of six months and out of the same, the petitioner has already undergone 03 months and 06 days of sentence.

4. Out of compensation amount of Rs. 1 lac, Rs. 55,000/- has already been paid. Further perusal of account statement (Annexure P-2), amount of Rs. 91,767/- has been