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2024 Supreme(All) 1663

IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
ANISH KUMAR GUPTA, J.
Shashwat Agrawal – Applicant
Versus
State of Uttar Pradesh and Another - Opposite Parties
Application U/S 482 No. 19596 Of 2024
Decided On : 27-09-2024

Advocates Appeared:
For the Applicant : Anurag Pathak, Harshit Pathak.
For the Opposite Parties : G.A., Saurabh Kumar.

IMPORTANT POINT
The Lok Adalat cannot impose conditions beyond a compromise agreement, as its role is limited to facilitating settlements without adjudicatory powers.

Headnote:

(A) Negotiable Instruments Act, 1881 - Section 138 - Quashing of order - Complaint case for dishonour of cheques - The applicant sought to quash the order of Lok Adalat imposing conditions not part of the compromise - The court held that Lok Adalat lacks adjudicatory powers and cannot impose penalties beyond the settlement - The conditions imposed were beyond the compromise and thus invalid. (Paras 1-16)

(B) Criminal Procedure Code, 1973 - Section 482 - Jurisdiction of High Court - The application under Section 482 Cr.P.C. against the Lok Adalat's award is not maintainable as it is treated as a decree of a civil court, challengeable only under Articles 226 and 227 of the Constitution. (Paras 14-15)

Facts of the case:

The applicant was aggrieved by the Lok Adalat's order imposing conditions on a compromise regarding dishonoured cheques, which were not part of the original settlement.

Findings of Court:

The court found that the Lok Adalat exceeded its jurisdiction by imposing conditions not agreed upon by the parties.

Issues: Whether the Lok Adalat can impose conditions beyond a compromise and the maintainability of the application under Section 482 Cr.P.C. against the Lok Adalat's award.

Ratio Decidendi: The court ruled that Lok Adalat's role is purely conciliatory and it cannot impose penalties beyond the terms of a compromise. The application under Section 482 Cr.P.C. against the Lok Adalat's award is not maintainable.

Result: Application disposed of.

JUDGMENT :

(Anish Kumar Gupta, J.)

1. Heard Sri Anurag Pathak, learned counsel for the applicant, Sri Anil Srivastava, learned Senior Counsel assisted by Sri Saurabh Kumar, learned counsel for the opposite party no.2 and Sri Raj Bahadur Verma, learned AGA for the State.

2. The instant application under Section 482 Cr.P.C. has been filed seeking quashing of the order dated 22.01.2024 passed by the learned Additional Court, Saharanpur in Complaint Case No. 25882 of 2022, under Section 138 of the Negotiable Instruments Act (in short the 'N.I. Act').

3. The brief facts of the case are that the opposite party no.2 has filed a complaint case under Section 138 of the N.I. Act for dishonour of three cheques bearing cheque no. 418192 dated 28.06.2022, amounting Rs. 5,00,000/-, cheque no. 418193 dated 28.06.2022, amounting Rs. 5,00,000/- and cheque no. 418194 dated 28.06.2022, amounting Rs. 6,72,000/- respectively issued by the applicant herein, which were paid in terms of the sale deed executed by the opposite party no.2 in favour of the applicant herein. The said cheques were presented for encashment and were dishonoured. Thereupon a legal notice dated 19.07.2022 was sent, which was not complied with. Thereafter a complaint case was filed on 24.08.2022 by the opposite party no.2 under Section 138 of N.I.Act. Subsequently during the pendency of the aforesaid complaint case, the applicant herein entered into a settlement with the opposite party no.2 and agreed to make the entire payment of the aforesaid cheque amount. A compromise dated 05.01.2024 has arrived at between the parties and the applicant has admitted his liability with regard to the aforesaid three cheques and has agreed to make the payment by the 5th of February 2024. In terms of the aforesaid settlement, the matter was taken up in the Lok Adalat on 22.01.2024 and the following order was passed:

    "Parties are present along with their learned counsel.

    The present complaint has been filed by the complainant against the accused in respect of dishonour of dishonour of following three cheques---

    1. Cheque No. 418192 dated 28-6-2022 for the sum of Rs. 500,000/-

    2. Cheque No. 418193 dated 28-6-2022 for the sum of Rs. 500,000/-

    3. Cheque No. 418194 dated 28-6-2022 for the sum of Rs. 672,000/-

    Subsequently the parties entered into a compromise and thereafter on 05-01-2074 filed a compromise deed through paper No. 15-B, stating that they have settled their dispute to the effect that the accused has issued following two cheques in favour of the complainant---

    1. Cheque No. 947560 for the sum of Rs 150,000/- and

    2. Cheque No. 947561 for the sum of Rs. 150,000/-

    It has also been agreed that remaining amount shall be paid positively by 05-02-2024 Accordingly it is prayed that the complaint case should be decided in terms of compromise 15-B.

    The aforesaid compromise was verified by me on 08-01-2024. The present complaint has been filed against the accused under Section 138 NI Act. The offence under Section 138 of NI Act is compoundable. Therefore the complaint case is disposed of in terms of aforesaid compromise as under---

    1. That out of the settled amount the accused has already paid a sum of Rs. 300,000/ through aforementioned two cheques. Remaining settled amount shall be paid positively by 05-02-2024.

    2. On default of payment of the settled amount as aforesaid the accused will have to undergo three months simple imprisonment.

    3. On default of payment of amount in terms of compromise the complainant will be entitled to interest at the rate of 9% on the amount due by then, till realisation of entire amount.

    Accordingly the complaint is decided in terms of compromise 13-8. Let the file be consigned to record room with the further direction that on being informed by the complainant about the default in payment, the file will be summoned from the record Room and recovery warrant and NBW will be issued forthwith against the accused."

4. Learned counsel for the applicant submits that the Lok Adalat has erroneo

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