Settlement under Section 147 of the Negotiable Instruments Act allows for compounding of offences when parties reach an agreement.

ORDER

The petitioners have challenged the judgment of conviction dated 10.01.2019 passed by the LVII Addl. Chief Metropolitan Magistrate, Mayo Hall Unit, Bengaluru City in C.C.No.56190/2015 for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 and consequent sentence to pay fine of Rs.16,01,000/- and in default, to undergo simple imprisonment for a period of one year. The petitioner has also called in question the judgment dated 20.04.2022 passed by the XIII Addl. City Civil and Sessions Judge, Mayohall Unit, Bengaluru (CCH-22) in Crl.A.No.25036/2019 by which, the judgment of conviction and the consequent sentence passed by the Trial Court was upheld.

2. When this revision petition is listed for orders, the parties have settled the dispute and have filed an application under Section 147 of the Negotiable Instruments Act, 1881 , in terms of which, the petitioners and the respondent have resolved to settle the dispute at a sum of Rs.6,40,200/-. The petitioners have stated that the said sum of Rs.6,40,200/- has been deposited before the Trial Court and that the same may be released to the respondent.

3. In view of the fact that the parties have amicably resolved the dispute, the application filed under Section 147 of the Negotiable Instruments Act, 1881 is allowed. Consequently, this revision petition is allowed. The offence committed by the petitioners punishable under Section 138 of the Negotiable Instruments Act, 1881 is compounded. The judgment of conviction and order of sentence dated 10.01.2019 passed by the LVII Addl. Chief Metropolitan Magistrate, Mayo Hall Unit, Bengaluru City in C.C.No.56190/2015 for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 and the judgment dated 20.04.2022 passed by the XIII Addl. City Civil and Sessions Judge, Mayohall Unit, Bengaluru (CCH - 22) in Crl.A.No.25036/2019 are set aside.

4. The petitioners are acquitted of the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 .

5. Out of the sum of Rs.6,40,200/- deposited by the petitioners before the Trial Court, a sum of Rs.6,25,000/- shall be released to the respondent and a sum of Rs.15,200/- is ordered to be released in favour of the Karnataka State Legal Services Authority towards graded cost as per the judgment of the Hon'ble Supreme Court in the case of Damodar S. Prabhu vs. Sayed Babalal H [ AIR 2010 SC 1907 ].

The Registry is directed to forthwith return the Trial Court records.

In view of disposal of the revision petition, pending I.A., if any, also stands disposed off.