Parties can settle a compoundable offence under Section 138 of the Negotiable Instrument Act at any stage.

The petitioner-Sri.G.K.Venkatesh and his counsel

Sri.G.R.Mohan, and the respondent-Sri.C.D.Kemparaj and

his counsel Smt.Geethadevi M.P are present.

2.

It appears from the record that on 04.01.2023,

a joint memo has been filed by the parties stating that

they have resolved the dispute by amicable settlement.

The said settlement and its terms, as stated in para Nos.2,

3, 4 and 5 of the joint memo are extracted below:

"2.

During the pendency of the above

appeal, the Petitioner and the Respondent have

amicably resolved the matter wherein the

Petitioner herein has agreed to pay the entire

dishonored Cheque Amount of Rs. 6,00,000/-

to the Respondent and both of them have

agreed to pay the fine amount that is payable

to this Hon'ble Court. The Respondent has

agreed to contribute a sum of Rs. 40,000/-

towards the fine and the Petitioner may deduct

the amount of Rs. 40,000/- and pay him a sum

of Rs. 5,60,000/- (Five lakhs sixty thousand

only).

3.

The Petitioner has deposited a

sum of Rs. 3,00,000/- (three lakhs only) before

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the Trail Court and the Petitioner further pay a

balance amount of Rs.2,60,000 by way of

Bankers Cheque dated 02/01/2023 drawn in

favour of the Respondent, DD No - 284870,

Punjab National Bank towards full amount final

settlement.

4.

The

Respondent

has

filed

an

application to withdraw the amount of Rs three

lakhs and the Petitioner has no objections for

the Respondent to withdraw the said amount.

5.

The Petitioner further submits that

a sum of Rs.90,000/- by way of Demand Draft

will be deposited before this Hon'ble Court

towards the cost, on or before 03-02-2023.”

3. Today, the petitioner has handed over the

banker’s cheque bearing No.284870 dated 02.01.2023 for

a sum of Rs.2,60,000/- and the same is acknowledged by

the respondent . Thus, in view of the above said joint

memo and as per the averments made in the application-

I.A No.2/2022, there is no embargo to allow the

application-I.A No.2/2022, by encouraging the settlement

arrived at between the parties. It is to be noted here that,

the alleged offence under section 138 of the Negotiable

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Instrument Act is a compoundable offence. The parties

can settle the matter at any stage.

Hence, accepting the joint memo, the Criminal

Revision Petition filed by the petitioner stands allowed.

The accused is acquitted under Section 138 of the

Negotiable Instrument Act.

The liberty is reserved for the respondent to file the

necessary application before the Trial Court for releasing

the amount, to be deposited by the petitioner/accused and

direct the Trial Court to release the amount in favour of

the respondent after proper identification.

Sd/-

JUDGE

SMC/UN