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2023 Supreme(All) 2408

IN THE HIGH COURT OF ALLAHABAD
SAMIT GOPAL, J.
Sharad Kumar Singh - Applicant
Versus
State of U.P. and anr. - Opposite Parties
APPLICATION U/S 482 NO. 18587 OF 2023.
Decided On : 18-05-2023

Advocates appeared:
For the Applicant : Vivek Kumar Singh.
For the Opposite Parties : G.A.

Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 - Criminal Procedure Code, 1973 - Section 482 - Application filed for quashing of proceedings under Section 138 N.I. Act - Allegation of cheque dishonor due to insufficient funds - Complaint filed; legal enforceability disputed - Court found a prima facie case against the applicant, no irregularity in summoning order - Quashing refused. (Paras 3-7)

(B) Amicable Settlement - Encouragement for parties to reach an amicable settlement at an early stage to alleviate court burdens - Courts provided directives for facilitating settlement, stressing compensatory remedies over punitive measures in dishonor cases. (Paras 8-11)

Facts of the case:
The applicant was accused of issuing a cheque that was dishonored. Despite being given notice, the applicant did not rectify the issue. The proceeding was initiated under Section 138 of the N.I. Act following the filing of a complaint by the opposite party.

Findings of Court:
The court held that a prima facie case was established against the applicant, and therefore, the request to quash the proceedings lacked merit.

Issues: The primary issue was whether the proceedings under Section 138 N.I. Act could be quashed based on the applicant's claims of being falsely implicated and the absence of an enforceable debt.

Ratio Decidendi: The court reaffirmed that the existence of a prima facie case against the applicant submerged claims of false implication, and emphasized the constitutional mandate for amicable settlements to expedite court processes.

Result: Application disposed of, and an opportunity was provided for the parties to seek an amicable settlement.

Table of Content
1. complaint under section 138 n.i. act for dishonored cheque. (Para 3 , 4)
2. applicant claims false implication and lack of debt. (Para 5)
3. summoning order affirmed; prima facie case established. (Para 7)
4. apex court promotes amicable settlement in cheque dishonor cases. (Para 8 , 9)
5. court provides directives for potential compounding of offences. (Para 11 , 12 , 13 , 14 , 15)

JUDGMENT

Samit Gopal, J.

List revised.

2. Heard Sri Vivek Kumar Singh, learned counsel for the applicant, Sri Ankit Srivastava, learned counsel for the State and perused the record.

3. This application under Section 482 Cr.P.C. has been filed by the applicant Sharad Kumar Singh with the prayer to allow this application and quash the entire proceeding as well as summoning order dated 17.02.2018 & N.B.W. order dated 09.02.2020 in Complaint Case No. 469 of 2022 (Jai Prakash v. Sharad Kumar Singh), under Section 138 Negotiable Instrument Act, Police Station Kotwali Dehat, District Banda pending in the Court of Special Judicial Magistrate-1st, Banda with a further prayer that proceeding of the aforesaid case be stayed against the applicant during the pendency of the present application.

4. The facts of the case are that a complaint under section 138 of the N.I. Act dated 02.01.2018 was filed by the opposite party no.2 against the applicant alleging therein that cheque no.17584 dated 09.10.2017 of Rs. 82,000/- of Bank of India was given by the applicant to the opposite party no.2. The said cheque was deposited in the bank account of the complainant on 03.12.2017 which stood dishonored due to insufficient fund, the information of the same was received by the complainant in writing with return memo on 06.12.2017. The complainant then gave a notice dated 11.12.2017 through his lawyer to the accused. Despite the said notice, the accused has not paid the money. A complaint has thus been filed. The trial court summoned the applicant vide its order dated 17.02.2018 under section 138 N.I. Act to face trial.

5. Learned counsel for the applicant submits that the applicant has been falsely implicated in the present case. It is submitted that there is no legal enforceable debt upon the applicant. The criminal proceedings are with malafide intentions and abuse of process of court. It is further submitted that the story as narrated by the opposite party no.2 in the complaint is a totally false, frivolous and a concocted story. The proceedings as initiated against the applicant are abuse of process of court. It is further submitted that the proceedings as such be quashed.

6. Learned counsel for the State has been heard.

7. After hearing the learned counsel for the parties and perusing the records, it is evident that the cheque issued by the applicant in favour of the complainant stood dishonored. Despite service of notice the said payment has not been done to the complainant. Prima facie case is made out against the applicant. The order summoning the applicant does not suffer from any irregularity or illegality. The prayer for quashing of the proceedings is thus refused.

8. In the last, the learned counsel has urged before the Court that the facts and circumstances of the case and the nature of offence involved are such in which the litigating parties should be given a chance to settle this matter amicably and for this purpose some protective direction may be given by this Court so that adequate steps may be taken in furtherance of the same object. Learned counsel has placed reliance on judgement of the Apex Court in the case of Damodar S. Prabhu v. Sayed Babalal H. : 2010(5) SCC 663 and M/s. Meters & Instrument Private Ltd. & Another v. Kanchan Mehta: (2018) 1 SCC 560. It is argued that the Apex Court has taken cognizance of the heavy pendency of the cases in the courts which may result ultimately in the chocking of criminal justice system. It has been submitted that with the laudable object of providing the rival parties, who have hitherto locked their ho

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