Compromise settlement in cheque dishonor case quashed proceedings under Section 138 of N.I. Act.

ORDER

Petitioner/accused has preferred this petition to quash the proceedings pending against him in C.C.No.1113/2017 on the file of the Court of JMFC-I, Hubballi, initiated for an offence punishable under Section 138 of the Negotiable Instruments Act (for short ‘the N.I.Act’).

2. A cheque bearing No.571096 dated 28.11.2016 drawn on Karnataka Bank for a sum of Rs.2,37,000/- issued by the petitioner/accused to the respondent/complainant towards a legally enforceable debt came to be dishonoured for ‘funds insufficient’ and it is averred that in spite of issuing legal notice calling upon the accused to honour the cheque, he did not repay the amount and therefore, he committed an offence under Section 138 of N.I. Act.

3. A compromise petition has been filed, signed by the respective parties as well as the learned counsel appearing for both the parties.

4. It is stated that the parties have amicably settled the dispute on the following terms:

“7. During pendency of the above proceedings, the Petitioner and Respondent have amicably settled the dispute with the intervention of elders and their well- wishers on following terms:

i. The Respondent/Complainant has agreed to give up his claim in respect of the Cheque 571096 dated 28/11/2016, by accepting a total sum of Rs.2,00,000/- (Two Lakh rupees) from the Petitioner as full and final payment.

ii. The Petitioner/accused has paid Rs.2,00,000/- (Rupees Two Lakhs only) by way of Demand Draft dated 23/01/2023 bearing Demand Draft No.501133, drawn in ICICI Bank, Sindhanur Branch and the Respondent/Complainant has acknowledged receipt of the same.

iii. In view of above compromise Complainant/Respondent shall withdraw C.C.No.1113/2017 pending on the file of Hon’ble JMFC-I Court, Hubballi.”

5. Both the parties are present before the Court. The matter has been settled for a sum of Rs.2,00,000/-. A Demand Draft bearing No.501133 dated 23.01.2023 for a sum of Rs.2,00,000/- drawn on ICICI Bank, Sindhnur branch, has been handed over to the respondent/complainant and the same has been acknowledged by him, who is present before the Court.

6. It is submitted by the learned counsel for petitioner that the petitioner is a bonafide litigant and on his own volition, he has come forward to settle the dispute. He therefore, seeks to impose minimal cost.

7. During the pendency of the case before the trial Court, the parties have come forward to settle the dispute. There is no adverse order passed against the petitioner by the trial Court. Considering the same, this Court is of the view that a sum of Rs.10,000/- may be imposed as cost on the petitioner/accused, to meet the ends of justice.

8. Hence, the following:

ORDER

i) Petition is allowed,

ii) The entire proceedings in C.C.No.1113/2017 pending on the file of the Court of JMFC-I, Hubballi, against the petitioner is quashed,

iii) The petitioner shall pay a sum of Rs.10,000/- (Rupees ten thousand only) towards cost, which shall be deposited with the District Legal Services Authority, Dharwad and he shall file the receipt for having deposited the said amount, before the registry of this Court within a period of 15 days from today.

Pending IA-1/2022 is disposed of.