NEELKAMAL MEGHWAL vs STATE OF RAJASTHAN - 2025 Supreme(Online)(RAJ) 12

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2025 Supreme(Online)(RAJ) 12

HIGH COURT OF RAJASTHAN (JODHPUR BENCH)
MR. JUSTICE MANOJ KUMAR GARG, J
NEELKAMAL MEGHWAL – Appellant
Versus
STATE OF RAJASTHAN – Respondent
CRLR / 1469 / 2024

Important Points

A compromise under Section 147 of the NI Act allows for the setting aside of a conviction when the complainant is satisfied and the requisite costs are deposited.

Subject

Criminal Law - Negotiable Instruments Act

Act Referred

Negotiable Instruments Act, 1881 : S.138,S.147

Headnote

(A) Negotiable Instruments Act, 1881 - Section 138 - Revision petition against conviction and sentence for dishonor of cheque - Parties entered into a compromise, and the complainant does not wish to pursue the matter further - The court set aside the conviction and sentence based on the compromise and relevant legal provisions. (Paras 1, 4, 6)

(B) Compromise in Lok Adalat - The court recognizes the validity of a compromise between parties in cases under the NI Act, allowing for the setting aside of convictions where the complainant is satisfied. (Paras 3, 5)

Facts of the case:
The petitioner was convicted and sentenced for an offence under Section 138 of the NI Act, with a fine of Rs.2,00,000/- and imprisonment. The parties reached a compromise, and the complainant does not wish to proceed with the case.

Findings of Court:
The conviction and sentence are set aside based on the compromise, with the imposition of a cost of 15% of the cheque amount to be deposited.

Issues: The main issue was whether the conviction could be set aside given the compromise between the parties.

Ratio Decidendi: The court ruled that under Section 147 of the NI Act, a compromise can lead to the setting aside of a conviction, provided the complainant is satisfied and the cost is deposited.

Result: Revision petition allowed.

Judgment

This revision petition has been filed against the judgment dated 20.09.2024 passed by the learned Additional Session Judge No.1, District Jodhpur Metropolitan in Criminal Appeal No.23/2023 by which, the appeal filed by the. petitioner was dismissed and the judgment dated 01.05.2023 passed by the learned Special Metropolitan Magistrate (NI Act Cases), District Jodhpur Metropolitan, in Criminal Case No.1300/2022 convicting and sentencing the petitioner for offence under Section 138 N.I. Act has been affirmed. The petitioner was sentenced to undergo one year simple imprisonment along with fine in the sum of Rs.2,00,000/-. In default of payment of fine, the petitioner was sentenced to undergo three months’ simple imprisonment.

Learned counsel for the petitioner submits that the petitioner and complainant-respondent No.2 have entered into a compromise in the spirit of Lok Adalat and the respondent No.2 has received all the amount from the petitioner and does not want to proceed with the matter, therefore the sentence of imprisonment awarded to the petitioner may be set aside. The copy of the compromise is already placed on record.

Learned counsel for respondent No.2 concurs with the facts stated by the counsel for the petitioner.

I have considered the arguments advanced by counsel for the parties and perused the compromise deed.

Having considered the facts and circumstances of the case, since the parties have settled their dispute and complainant respondent No.2 has accepted the sum towards full and final settlement of dispute on the satisfaction of the complainant and in the light of provisions of Section 147 of NI Act and in view of law laid down by the Hon’ble Apex Court in the case of Damodar S. Prabhu Vs. Sayed Babalal H. reported in 2010 (5) SCC 663 , the sentence awarded to the petitioner for offence under Section 138 NI Act is liable to be set aside. However, since the compromise has been arrived at after rejection of the appeal preferred by the petitioner, a cost of 15% of the cheque amount deserves to be imposed upon the petitioner in light of the decision rendered by the Hon’ble Apex Court in the case of Damodar S. Prabhu (supra).

Accordingly, the conviction and sentence of imprisonment awarded to the petitioner for offence under Section 138 NI Act vide judgments dated 01.05.2023 and 20.09.2024 are hereby set aside on the basis of the aforesaid compromise subject to deposition of cost of 15% of the cheque amount. The cost shall be deposited by the petitioner before the Rajasthan State Legal Services Authority, Jodhpur within a period of one month from today. In case, the cost is not deposited by the petitioner before the Rajasthan State Legal Services Authority, Jodhpur within the stipulated period, the revision petition may be listed before this Court for passing appropriate orders.

The revision petition is allowed in the above terms. The application for suspension of sentence is also decided accordingly.

A copy of this order be sent to the Rajasthan State Legal Services Authority, Jodhpur.