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2023 Supreme(UK) 507

IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
RAKESH THAPLIYAL, J.
Kushdhwaj Shamal – Appellant
Versus
State of Uttarakhand and Another – Respondents
C-482 No. 2394 of 2023
Decided On : 13-12-2023

Advocates:
Advocate Appeared:
For the Appellant : P.C. Pethshali.
For the Respondents: Saurabh Pandey, Yogesh Upadhyay.

Even after conviction, the parties may compound the matter by moving a Compounding Application under Section 147 of the Negotiable Instruments Act.

Headnote:

Negotiable Instruments Act - Compounding of Offences - Section 138 - Section 147 - Section 357(3) of Cr.P.C. - [Section 138, Section 147, Section 357(3)] - The court allowed the compounding application under Section 147 of the Negotiable Instruments Act, holding that even after conviction, the parties may compound the matter by moving a Compounding Application. The court referred to the judgment of the Allahabad High Court in the case of Rishi Mohan Srivastava vs. State of U.P. and Another, 2021 SCC Online All. 532, which emphasized that the offence made punishable under Section 138 of N.I. Act is not only an offence qua property but it is also of the nature of an economic offence, and parties are at liberty to compound the matter at any stage even after the dismissal of the application.

Fact of the Case:

The applicant was convicted under Section 138 of the Negotiable Instruments Act and sentenced to one year simple imprisonment with a fine of Rs. 1,000, along with a compensation of Rs. 35,000 awarded to the complainant. The Criminal Appeal and Revision against the conviction were dismissed, and the applicant was in jail. A Compounding Application was moved after a settlement was reached between the parties, and the entire amount of compensation, including the amount mentioned in the cheque, was paid to the complainant.

Finding of the Court:

The court allowed the Compounding Application, quashed the sentence awarded to the applicant, and acquitted the applicant from the charge.

Issues: Whether the offences under Section 138 of the Negotiable Instruments Act can be compounded after conviction confirmed by the superior court.

Ratio Decidendi: The court held that even after conviction, the parties may compound the matter by moving a Compounding Application under Section 147 of the Negotiable Instruments Act. The court referred to the judgment of the Allahabad High Court, which emphasized the nature of the offence under Section 138 of N.I. Act as an economic offence and allowed compounding at any stage even after the dismissal of the application.

Final Decision: The Compounding Application was allowed, and the sentence awarded to the applicant was quashed, leading to the applicant's acquittal from the charge.

JUDGMENT :

RAKESH THAPLIYAL, J.

1. Present Application, under Section 482 of Cr.P.C. has been preferred by the applicant, who is in jail after conviction pursuant to the judgment rendered by the IInd Additional Civil Judge (Junior Division)/Judicial Magistrate, Kashipur, District Udham Singh Nagar in Criminal Case No. 867 of 2005 dated 04.01.2010, whereby the applicant has been convicted in respect of the offence punishable under Section 138 of the Negotiable Instruments Act with one year simple imprisonment with fine of Rs. 1,000/- failing which, he has to undergo further one month”s simple imprisonment. In addition to this, a compensation of Rs. 35,000/- was also awarded to the complainant in view of Section 357(3) of the Code of Criminal Procedure. Against this judgment dated 04.01.2010, whereby the applicant was convicted, a Criminal Appeal being Criminal Appeal No. 05 of 2010 Kushdwaj Shamal vs. State of Uttarakhand and Another was preferred before the Additional District and Sessions Judge, Kashipur, District Udham Singh Nagar and the said Appeal was dismissed on 11.01.2011, against which a Criminal Revision being Criminal Revision No. 05 of 2011 was also preferred before this Court and the said revision was also dismissed by order dated 21.06.2022. This order has not been assailed by the applicant and has attained finality.

2. Now a Compounding Application has been moved, which is supported with the affidavit of the applicant, who is in jail as well as with the affidavit of the complainant-Anup Agrawal.

3. Sagar Kumar-son of the present applicant and the complainant-Anup Kumar both are present in the Court and both of them have been identified by their respective counsel through their Adhar Cards. This Court also interacted with them and they stated that now a settlement has arrived between the parties and the entire amount of compensation, which includes the amount mentioned in the cheque, has been paid to the complainant (respondent No. 2).

4. Learned counsel for the parties submit that in view of Section 147 of the Negotiable Instruments Act, these offences are compoundable, however, here a question arises, whether after conviction, which is confirmed by the superior Court, still the offences can be compounded. In reference to this, Mr. P.C. Pethshali, learned counsel for the applicant placed reliance on the judgment of the Allahabad High Court in the case of Rishi Mohan Srivastava vs. State of U.P. and Another, 2021 SCC Online All. 532 where after conviction, the offences were compounded. Mr. P.C. Pethshali particularly refers Paragraphs 27, 28, 29 and 30 of the said judgment, which read as under:

    “27. The expression “special law” means a provision of law, which is not applicable generally but which applies to a particular or specific subject or class of subjects. Section 41 of Penal Code 1860 stands on the same footing and defines the phrase special law. In this connection I would like to quote the well accepted proposition of law emerging from various observations made by the Hon”ble Apex Court in different decisions as a gist of the principle and it can be summarised as under:

“When a special law or a statute is applicable to a particular subject, then the same would prevail over a general law with regard to the very subject, is the accepted principle in the field of interpretation of statute.”

28. In reference to offence under section 138 of N.I. Act read with section 147 of the said Act, the parties are at liberty to compound the matter at any stage even after the dismissal of the revision application. Even a convict undergoing imprisonment with the liability to pay the amount of fine imposed by the court and/or under an obligation to pay the amount of compensation if awarded, as per the scheme of N.I. Act, can compound the matter. The complainant i.e. person or persons affected can pray to the court that the accused, on compounding of the offence may be released by invoking jurisdiction of this court under section 482

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