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2025 Supreme(Online)(Kar) 21773
KARNATAKA HIGH COURT
S.VISHWAJITH SHETTY, J
SRI. MADEV S/O JATTAYYA NAIK – Appellant
Versus
LAXMAN JATTAYYA NAIK – Respondent
CRIMINAL REVISION PETITION NO. 100299 OF 2025 (397(CR.PC)/438(BNSS))
For the Appellants/Petitioners: SRI. SURESH S. BHAT
For the Respondents: SRI. GANAPATI M. BHAT
The offence under Section 138 of the N.I. Act can be compounded if the parties settle their dispute amicably.
Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 - Criminal Procedure Code - Sections 320(8) - Compounding of offence - Dispute between parties amicably settled as indicted in a joint memo - Compounding permitted as per statutory provisions - Conviction set aside following mutual agreement. (Paras 1-9)
(B) Compounding of Offences - Offences under the Negotiable Instruments Act can be compounded if the dispute is amicably settled by the parties. (Paras 4-7)
Facts of the case:
The petitioner was convicted for the offence under Section 138 of the N.I. Act and sentence modified on appeal. A joint memo for settlement was filed by the parties, affirming that terms of settlement have been fulfilled.
Findings of Court:
The court permitted the compounding of the offence and set aside the conviction in view of settlement.
Issues: The primary issue was whether the offence under Section 138 can be compounded based on an amicable settlement between the parties.
Ratio Decidendi: The court held that parties may compound the offence under Section 138 of the N.I. Act, reinforcing that criminal liabilities can be settled amicably.
Result: The Criminal Revision Petition is allowed; the conviction and order are set aside.
| Table of Content |
|---|
| 1. conviction history and context presented. (Para 1 , 3) |
| 2. mutual settlement and joint memo filed. (Para 4 , 8) |
| 3. compounding offences based on settlement. (Para 9) |
(PER: THE HON'BLE MR. JUSTICE S.VISHWAJITH SHETTY)
1. The petitioner is before this Court assailing the judgment and order of conviction dated 16th April 2018 passed by the Court of Judicial Magistrate First Class, Bhatkal in C.C. No.1094 of 2015, which is confirmed in Criminal Appeal No.46/2018, by the Court of II-Addl. District and Sessions Judge, Uttara Kannada, Karwar by judgment and order dated 12th August 2022.
2. Heard the learned counsel appearing for the parties.
3. The petitioner has been convicted and sentenced for the offence punishable under Section 138 of the Negotiable Instruments Act by the Court of Judicial Magistrate First Class, Bhatkal in C.C. No.1094 of 2015, dated 16th April 2018. The Appellate Court has confirmed the conviction and has modified the sentence in Criminal Appeal No.46 of 2018, disposed of on 12th August 2022. It is under these circumstances, the petitioner is before this Court.
4. Learned counsels for the parties jointly submit that the dispute between the parties has been amicably settled and they have filed a joint memo reporting settlement.
5. The said joint memo is taken on record.
6. The joint memo is signed by the respective parties and their advocates. The parties, who are present before the Court have been identified by their advocates.
7. In the joint memo, it is stated as follows.
“JOINT MEMO FILED UNDER SECTION 147 OF NEGOTIABLE INSTRUMENT ACT, 1881, R/W. SECTION 320(8) OF CR.P.C & R/W. SECTION 329 OF B.N.S.S ,2023.
This Criminal Revision Petition is filed against the judgement and order passed in criminal appeal No.46/2018, dated 12-08-2022, on the file of the 2nd Addl, Dist and sessions judge, Uttara Kannada, Karwar, modifying the judgement and order passed by the Court of Judicial Magistrate First Class, Bhakal, in C.C. No.1094/2015, dated 16-04-2018. The parties to this Criminal Revision Petition have settled their claim on following terms:-
1. The petitioner (accused) has already paid and the respondent (complainant) has already to received a sum of Rs.90,000/-(Rs. Ninty thousand) by cash in full and final settlement of the claim. Already the petitioner deposited amount of Rs.22,500/- before trial Court, kindly refund this amount to the petitioner.
2. In the terms of section 147 of the N.I. Act, offence can be compounded if the dispute has been amicably settled. Hence it is prayed that the judgement of conviction/sentence passed by the in the court of Judicial Magistrate First Class, Bhakal, in C.C. No.1094/2015, dated 16-04-2018 and which is modifyed by the 2nd Addl Dist Judge, Uttara Kannada, Karwar in criminal appeal No.46/2018 dt 12-08-2022, further may please be set aside and acquitted the petitioner u/s 320(8) of Cr.P.C &
u/sec.329 of BNSS,2023, in the interest of justice.”
8. The parties have settled the dispute amicably and the respondent-complainant has received a sum of ₹.90,000/- towards full and final settlement of his claim.
9. In view of the settlements arrived at between the parties and also the joint memo filed by them, I am of the opinion that this Criminal Revision Petition is required to be disposed of permitting the parties to compound the alleged offences. Accordingly, the following:
ORDER
(i) The Criminal Revision Petition is allowed.
(ii) The parties are permitted to compound the offence punishable under the 138 of the N.I. Act, for which the petitioner has been convicted by the Courts below and consequently, the judgment and order of conviction and sentence passed by the Courts below are set aside and the petitioner is acquitted of alleged offence.
(iii) The amount of ₹.22,500/- said to have been deposited by the petitioner before the trial Court is permitted to be withdrawn by *Petitioner.
the respondent.
(iv) In view of the disposal of the Criminal Revision Petition, pending applications, if
