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IN THE HIGH COURT OF ALLAHABAD
Hon'ble Shamim Ahmed, J.
Ravindra Kumar Yadav – Applicant
Versus
State Of U.P. Thru. Addl. Chief Secy. Home, Civil Sectt. Lko. And Another – Opposite Parties
Application U/S 482 No. - 2491 of 2024
Decided On : 27-05-2024
CRIMINAL LAW - NEGOTIABLE INSTRUMENTS ACT - Sections 138, 147 of N.I. Act; Section 482 Cr.P.C. - The court discussed the provisions of Section 138 of the Negotiable Instruments Act, which penalizes the dishonor of cheques, and Section 147, which allows for compounding of such offenses. The court emphasized that the primary objective of the N.I. Act is compensatory rather than punitive, allowing for the compounding of offenses at any stage, even after conviction. The court also referenced Section 482 of the Cr.P.C., which grants inherent powers to the High Court to secure the ends of justice, allowing the court to quash the conviction based on a compromise between the parties.
Fact of the Case:
The applicant borrowed Rs.30,00,000 from the opposite party and defaulted on payments. A cheque issued for Rs.27,60,000 was dishonored due to insufficient funds, leading to a conviction under Section 138 of the N.I. Act, resulting in a two-year imprisonment and a fine of Rs.45,00,000.
Finding of the Court:
The court found that the parties had reached a compromise after the conviction and that the applicant was willing to pay the owed amount. The court recognized the compensatory nature of the N.I. Act and allowed the compounding of the offense, quashing the previous conviction.
Issues: Whether the High Court can nullify a conviction based on a compromise after a revision petition has been dismissed.
Ratio Decidendi: The court held that under Section 147 of the N.I. Act, offenses can be compounded at any stage, and the inherent powers under Section 482 Cr.P.C. can be invoked to secure justice, even after a conviction has been upheld.
Final Decision: The application under Section 482 Cr.P.C. was allowed, the conviction and sentence were annulled, and the applicant was acquitted based on the compromise with the complainant.
JUDGMENT :
Hon'ble Shamim Ahmed, J.
1. Heard Sri Veer Bahadur Lal Srivastava, learned counsel for the applicant, Sri Ashok Srivastava, learned A.G.A. for the State opposite party no.1 and Sri Dharmendra Gupta, learned counsel for the opposite party no.2
2. The instant application under section 482 Cr. P.C. has been filed with the prayer to compound the offence committed by the applicant under Section 138 of the Negotiable Instrument Act, 1881 in Complaint Case No.7097 of 2017, Police Station Talkatora, District Lucknow (Sanchetna Financial Services Private Limited Vs. Ravindra Kumar Yadav) and further to quash the impugned judgment and order dated 07.04.2021 passed by learned Court of Additional Court No.3 (N.I. Act), Lucknow, whereby the applicant has been convicted under Section 138 of the Negotiable Instrument Act, 1881 and has been directed to undergo imprisonment for two years alongwith fine of Rs.45,00,000/-and in case of default of payment of fine, the applicant has been directed to undergo additional simple imprisonment for a period of one and half year. A sum of Rs.38,00,000/-was directed to be paid to the complainant as damages.
3. The facts of the case, in brief, are that the applicant had taken a sum of Rs.30,00,000/-as loan from the opposite party no.2 and became defaulter in paying the installment.
4. Thereafter, the applicant agreed to pay the entire dues to the opposite party no.2 and had issued cheque bearing No.000034 dated 05.09.2017 of Kotak Mahindra Bank, Vishal Khand, Gomti Nagar, Lucknow for Rs.27,60,000/-, however, when the same was presented by the opposite party no.2, it got dishonored with the reason “Funds Insufficient”.
5. Thereafter, the opposite party no.2 filed a Complaint Case No.7097 of 2017, under Section 138 of the Negotiable Instrument Act, 1881, Police Station Talkatora, District Lucknow. After the completion of trial, the trial court has convicted the applicant vide judgment and order dated 07.04.2021 and sentenced him for a period of two years alongwith fine of Rs.45,00,000/-and in case of default of payment of fine, the applicant has been directed to undergo additional simple imprisonment for a period of one and half year. A sum of Rs.38,00,000/- was directed to be paid to the complainant as damages.
6. Thereafter, the applicant has preferred a Criminal Appeal No.165 of 2021 against the impugned judgment and order dated 07.04.2021 passed by the learned Additional Court No.3 (N.I. Act), Lucknow, however, the same was dismissed by means of judgment and order dated 16.01.2024 passed by the learned Additional Sessions Judge, Court No.3, Lucknow and the applicant was directed to surrender before the learned trial court on 07.02.2024 to undergo sentence.
7. The applicant had already deposited Rs.9,00,000/-before the learned Additional Court No.3 (N.I. Act), Lucknow in compliance of the order passed by learned Sessions Judge, Lucknow during the hearing of Criminal Appeal No.165 of 2021.
8. Thereafter, the applicant had preferred a Criminal Revision before this Court bearing Criminal Revision No.104 of 2024, which too got dismissed at the admission stage vide order dated 08.02.2024.
9. Learned counsel for the applicant submits that the applicant has surrendered himself before the learned trial court on 07.02.2024 in compliance of the judgment and order dated 16.01.2024 passed by the court of learned Additional Sessions Judge, Court No.3, Lucknow in Criminal Appeal No.165 of 2021 and now he is languishing in jail in connection with the aforesaid case.
10. Learned counsel for the applicant further submits that after the rejection of Criminal Revision No.104 of 2024, both the parties have entered into compromise and a written compromise agreement dated 07.03.2024 has been prepared to the effect that the instant matter shall be settled in accordance with the terms and conditions as contained therein.
11. Learned counsel for the applicant further submits that the applicant is ready to make payment of Rs.38,00,0
Dishonoured of Cheque - Amicable Settlement - Guidelines as laid down in case of Damodar S. Prabhu (Supra) and taking into account fact that parties have settled dispute amicably, in view of this cou....
The High Court can annul convictions under the Negotiable Instruments Act based on joint compromises, emphasizing compensatory justice over punitive measures in cheque dishonour cases.
Offences under the Negotiable Instruments Act can be compounded at any stage, including post-conviction, emphasizing the compensatory nature of the law over punitive measures.
The court holds that offences under the Negotiable Instruments Act can be compounded at any stage of the proceedings, reaffirming their compensatory nature over punitive.
Compounding of offences under Section 138 of the Negotiable Instruments Act can be permitted at any stage, including post-conviction, emphasizing compensatory justice over punitive measures.
The court affirmed that offences under the Negotiable Instruments Act are compoundable at any stage, including post-conviction, prioritizing compensation over punishment.
The court affirmed that offences under the Negotiable Instruments Act are compoundable at any stage, including post-conviction, prioritizing compensation over punishment.
Offences under Section 138 of the Negotiable Instruments Act are compoundable at any stage, including post-conviction, emphasizing the compensatory nature of the remedy over punitive aspects.
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