IN THE HIGH COURT OF MADHYA PRADESH
Dinesh Kumar Paliwal, J.
Sagir Khan – Appellant
Versus
Syed Ibrahim – Respondent
Criminal Revision No. 846 of 2023
Decided On : 29-03-2023
Negotiable Instruments Act - Compounding of Offence - The court allowed the compounding of the offence under Section 138 of the Negotiable Instruments Act, as the parties had amicably settled their dispute and the entire amount of compensation had been paid to the complainant. The court also considered the guidelines issued by the Supreme Court in Damodardas S. Prabhu Vs. Sayed Babalal H, which allowed for compounding of the offence even after the recording of conviction by the lower courts.
Fact of the Case:
The complainant alleged that the accused had issued a cheque in exchange for cash, but the cheque was dishonored. The trial court found the accused guilty and sentenced him to imprisonment and compensation.
Finding of the Court:
The court allowed the compounding of the offence under Section 138 of the Negotiable Instruments Act, quashed the judgment of conviction and order of sentence, and acquitted the accused.
Issues: The main issue was the compounding of the offence under Section 138 of the Negotiable Instruments Act.
Ratio Decidendi: The court considered the amicable settlement between the parties, the payment of the entire compensation amount, and the guidelines issued by the Supreme Court, allowing for compounding of the offence even after the recording of conviction by the lower courts.
Final Decision: The accused was acquitted of the offence under Section 138 of the Act, and the court directed the jail authorities to release the accused forthwith.
ORDER
1. This revision has been filed against the appeal judgment dated 02.08.2022 passed by 21st Additional Sessions Judge, Bhopal in Cr.A. No.246/2022 (Sagir Khan vs. Syed Ibrahim) under Section 138 of Negotiable Instruments Act (in short 'the Act'), whereby judgment of conviction and order of sentence dated 18.04.2022 passed in Criminal Case No.8876/2017 (Syed Ibrahim vs. Sagir Khan) by Shri Ajay Pratap Singh Yadav, JMFC, Bhopal has been affirmed and the appeal preferred by the applicant/accused has been dismissed.
2. In brief the facts of the case as emerged from the record are that respondent/complainant instituted a complaint under Section 138 of the Act in the Court of learned JMFC, Bhopal alleging therein that complainant and applicant/accused are family friends. Complainant had given Rs.2,00,000/- cash to the applicant/accused and in lieu of that applicant/accused had issued cheque dated 23.07.2016 amounting to Rs.2,00,000/-. When it was presented in the bank, it stood dishonored. Applicant/accused failed to make the payment despite service of notice within time. Respondent/ complainant filed complaint before the Court of JMFC for commission of offence under Section 138 of the Act.
3. Learned trial Court on the basis of material produced on record by the parties vide judgment dated 18.04.2022 held the applicant/accused guilty for commission of offence under Section 138 of the Act and sentenced him to 3 months RI and also directed to pay compensation of Rs.03,03,250/-. In default of payment of compensation, he shall undergo simple imprisonment for 15 days. Besides that he was also directed to pay Rs.20,000/- as cost.
4 . Being aggrieved and dissatisfied with the aforesaid judgment of conviction recorded by the learned JMFC, applicant/accused preferred an appeal before the Court of Session. Learned 21st ASJ Bhopal dismissed the same by the impugned judgment dated 02.08.2022 and affirmed the judgment of conviction recorded by the learned JMFC.
5. Before this Court, parties filed a compromise application under Section 147 of the Act (I.A.No.5084/2023) praying therein to compound the offence and as such this Court while exercising power under Section 147 of the Act, may compound the offence and acquit the accused. Parties along with their counsel appeared before this Court and respondent complainant has admitted that he has received the entire amount from the applicant/accused and they have amicably settled the matter. Parties were directed to remain present before the Registrar (J-II) of this Court for verification of compromise. Registrar (J-II) after recording statement of complainant - Syed Ibrahim has submitted its verification report and as per the report, parties have entered into compromise on their own free will and volition. Therefore, compromise appears to be genuine. Even before this Court, it has been admitted by complainant that he has entered into compromise with the applicant and has received entire amount and entered compromise without any external pressure. Therefore, he has no objection in compounding of the offence.
6. Under Section 147 of the Negotiable Instruments Act, every offence punishable under that Act has been made compoundable.
7. Therefore, having taken into consideration the fact that entire amount of compensation stands paid or agreed to be paid to the respondent/complainant and parties have amicably settled their dispute, this Court see no obstruction in allowing the prayer made on behalf of the applicant for compounding of offence while exercising power under Section 147 of the Act.
8. It is also noteworthy that in terms of guidelines issued by Hon'ble Supreme Court in Damodardas S. Prabhu Vs. Sayed Babalal H, reported in (2010) 5 SCC 663, applicant/accused has deposited Rs.30,000/- i.e. 15% of the cheque amount before State Legal Services Authority on 27.03.2023 and receipt of the same has been filed in the Court. In that case, it has been categorically held that Court while exercising power und
The main legal point established in the judgment is the allowance of compounding of the offence under Section 138 of the Negotiable Instruments Act, based on the amicable settlement between the parti....
Compounding of the offence under Section 138 of the Negotiable Instruments Act is allowed when there is a genuine compromise between the parties and the entire amount has been paid to the complainant....
The genuine compromise entered into by the parties under Section 147 of the Negotiable Instruments Act led to the acquittal of the applicant.
The main legal point established is that the compounding of the offence under Section 138 of the Negotiable Instruments Act can be allowed based on a mutual compromise between the parties, leading to....
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