Section 138 of the Negotiable Instruments Act allows for compounding of offenses upon mutual consent of the parties, emphasizing compensatory over punitive aspects.

JUDGMENT :

Harpreet Singh Brar, J. (Oral) - CRM-49724-2024

Allowed as prayed for.

CRM-25556-2024

For the reasons mentioned in the application, the same is allowed.

Delay of 830 days in filing the present revision petition is hereby condoned.

MAIN CASE

1. The instant revision petition has been preferred against the impugned judgment of conviction and the order of sentence dated 12.12.2019 passed against the petitioner by learned Judicial Magistrate Ist Class, Patiala in complaint case bearing CNR No.PBPT03012722-2017 dated 03.10.2017 filed under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred as NI Act) as well as the impugned judgment dated 06.12.2021 passed by learned Additional Sessions Judge, Patiala, whereby, the appeal filed by the petitioner against the judgment of conviction dated 12.12.2019 has been dismissed. The petitioner was sentenced as under :-

FACTUAL MATRIX

2. Facts, in brief, are that the present complaint has been filed by the complainant bank through its Assistant Branch Manager Sh. Jagtar Singh (at that time, who was competent to file the present complaint and to do all acts for the conduct of the legal proceedings of the complaint and was well conversant with the facts of the complaint) that the accused/petitioner approached the complainant for house repair loan facility of Rs.2,50,000/- and accused agreed to make the repayment of above-said loan amount with interest at the agreed rate and other expenses in installments, but however, the petitioner-accused failed to repay the loan amount regularly as per repayment schedule and committed default and in this way, the account of the accused/petitioner became irregular. In discharge of his lawful liability towards the complainant/respondent, the petitioner/accused issued a cheque bearing No.951067 dated 04.08.2017 for a sum of Rs.2,50,000 drawn at SBI, Patiala ADB Branch, Patiala, and assured that the said cheque will be honoured as and when the same be presented for encashment by the complainant bank. It is further averred that the above-said cheque was presented by the complainant for encashment, but the same was dishonoured and returned unpaid along with bank memo dated 07.08.2017 with the remarks "Funds Insufficient". It is further submitted that the complainant got issued a legal notice on the petitioner/accused on 04.09.2017 through his counsel through registered post and the petitioner/accused was called upon to pay the amount of the returned cheque within 15 days from the receipt of the notice but the petitioner/accused has failed to repay the amount of loan till date. Hence the present complaint.

3. After preliminary evidence, the petitioner was summoned to face trial vide order dated 03.10.2017. After his appearance, he was served with notice of accusation under Section 138 NI Act on 12.12.2017, to which, he pleaded not guilty and claimed trial.

4. Ultimately, the learned trial Court after appreciating the complete evidence on record, convicted the petitioner on grounds that the cheque was signed and issued by him in favour of the respondent/complainant despite having knowledge that he has no sufficient funds in his account.

CONTENTIONS

5. Learned counsel for the petitioner inter alia contends that the petitioner had obtained a loan of Rs.2,50,000/- and mortgaged his land situated