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HIGH COURT OF PUNJAB AND HARYANA
PAL SINGH – Appellant
Versus
JAGJIT SINGH – Respondent
CRR 5066 2015
NEGOTIABLE INSTRUMENTS ACT, 1881 - SECTION 138 - COMPOUNDING OF OFFENCE - SETTLEMENT - ACQUITTAL - The offence under Section 138 of the Negotiable Instruments Act is compoundable. The compounding of the offence can be done during the trial of the case as well as by the High Court or Court of Session while acting in the exercise of its power of revision under Section 401 Criminal Procedure Code. The composition of an offence shall have the effect of acquittal of the accused with whom the offence has been compounded.
Fact of the Case:
The petitioner had obtained a loan from the complainant and his wife and had executed the pronotes and receipts in favour of the complainant and his wife on different dates and had agreed to return the same with interest on demand. In order to discharge his legal liability, the accused-petitioner issued a cheque bearing No.107287 dated 11.11.2011 for a sum of Rs.4,50,000/- from his Saving bank account No.2097101007824 with the Canara Bank, Jagraon Branch in favour of the complainant and assured him (complainant) that the said cheque amount could be realized as and when the same would be presented in the bank. On presentation of the cheque in question, the same was bounced back with the remarks ‘Funds Insufficient’ vide memo dated 17.11.2011. Thereafter, a legal notice was served upon the accused through the complainant’s counsel on 19.11.2011 calling upon the accused-petitioner to make the payment of the cheque within the stipulated period but he was failed to make the payment of the cheque in question. Thereafter, a complaint under Section 138 of the Negotiable Instruments Act, 1881, was filed, where the petitioner-accused was summoned to face the trial. The evidence was led and ultimately, he was held guilty and accordingly, convicted for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881, and sentenced to undergo simple imprisonment for a period of 01 year and to pay fine of Rs.3,000/- and in default of payment to further undergo simple imprisonment for 01 month. Aggrieved against the said judgment of conviction and order of sentence, the petitioner preferred an appeal before the Additional Sessions Judge, Ludhiana, which came to be dismissed on 20.08.2015. Still aggrieved, the present revision petition has been preferred by the petitioner.
Finding of the Court:
The court held that the offence under Section 138 of the Negotiable Instruments Act is compoundable. The compounding of the offence can be done during the trial of the case as well as by the High Court or Court of Session while acting in the exercise of its power of revision under Section 401 Criminal Procedure Code. The composition of an offence shall have the effect of acquittal of the accused with whom the offence has been compounded. In the present case, the parties have voluntarily settled the disputes between themselves, it is a fit case for allowing them to compound the offence.
Issues: Whether the offence under Section 138 of the Negotiable Instruments Act is compoundable?
Ratio Decidendi: The court relied on the provisions of Section 147 of the Negotiable Instruments Act and Section 320 Cr.P.C. to hold that the offence under Section 138 of the Negotiable Instruments Act is compoundable. The court also relied on the judgments of the Supreme Court in 'Ramesh Chander Vs. State of Haryana and another, 2007(1) RCR (Criminal) 245' and 'Vatsa Electronics Vs. Pala Ram & Anr. decided on 09.03.2022 in CRR-1585-2019' to hold that once a settlement is being effected, then in terms of Section 147 of the Negotiable Instruments Act and Section 320 Cr.P.C., the accused ought to be acquitted as the offence stands compounded.
Final Decision: The revision petition was allowed and the order dated 20.08.2015 passed by the Additional Sessions Judge, Ludhiana and judgment of conviction and order of sentence dated 22.01.2014 passed by the Judicial Magistrate Ist Class, Jagraon, were set aside. The petitioner was acquitted of the charge under Section 138 of the Negotiable Instruments Act.
2023:PHHC:163499
CRR-5066-2015 (O & M)
::1::-
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
CRR-5066-2015 (O& M)
Date of decision: 19.12.2023
Pal Singh
.... Petitioner
V/s
Jagjit Singh
...Respondent
CORAM:
HON’BLE MR. JUSTICE JASJIT SINGH BEDI
Present:
Mr. Raj Kumar Gupta, Advocate,
for the petitioner.
Mr. R.S. Dadwal, Advocate,
for the respondent.
*****
JASJIT SINGH BEDI,
J. (Oral)
The present revision petition has been filed against the judgment
dated 20.08.2015 passed by the Additional Sessions Judge, Ludhiana vide
which the appeal preferred by the petitioner against the judgment of
conviction and order of sentence dated 22.01.2014 passed by the Judicial
Magistrate Ist Class, Jagraon, has been dismissed.
2.
Briefly, the facts of the case are that the accused-petitioner had
obtained a loan from the complainant and his wife-Manjit Kaur and had
executed the pronotes and receipts in favour of the complainant and his wife
on different dates and had agreed to return the same with interest on demand.
In order to discharge his legal liability, the accused-petitioner issued a cheque
bearing No.107287 dated 11.11.2011 for a sum of Rs.4,50,000/- from his
SUKHPREET KAUR
2023.12.21 12:57
I attest to the accuracy and
integrity of this document
2023:PHHC:163499
CRR-5066-2015 (O & M)
::2::-
Saving bank account No.2097101007824 with the Canara Bank, Jagraon
Branch in favour of the complainant and assured him (complainant) that the
said cheque amount could be realized as and when the same would be
presented in the bank. On presentation of the cheque in question, the same
was bounced back with the remarks ‘Funds Insufficient’ vide memo dated
17.11.2011. Thereafter, a legal notice was served upon the accused through
the complainant’s counsel on 19.11.2011 calling upon the accused-petitioner
to make the payment of the cheque within the stipulated period but he was
failed to make the payment of the cheque in question.
3.
Thereafter, a complaint under Section 138 of the Negotiable
Instruments Act, 1881, was filed, where the petitioner-accused was
summoned to face the trial. The evidence was led and ultimately, he was held
guilty and accordingly, convicted for the offence punishable under Section
138 of the Negotiable Instruments Act, 1881, and sentenced to undergo
simple imprisonment for a period of 01 year and to pay fine of Rs.3,000/- and
in default of payment to further undergo simple imprisonment for 01 month.
4.
Aggrieved against the said judgment of conviction and order of
sentence, the petitioner preferred an appeal before the Additional Sessions
Judge, Ludhiana, which came to be dismissed on 20.08.2015.
5.
Still aggrieved, the present revision petition has been preferred
by the petitioner.
6.
During the pendency of the present revision petition, the parties
had appeared before the Mediation and Conciliation Centre of this Court to
SUKHPREET KAUR
2023.12.21 12:57
I attest to the accuracy and
integrity of this document
2023:PHHC:163499
CRR-5066-2015 (O & M)
::3::-
explore the possibilities of a compromise, pursuant to which, a compromise
had been arrived at before the said Forum on 25.01.2022 and the accused-
petitioner had already made the entire payment of Rs.4,50,000/- to the
complainant-respondent. A settlement/agreement deed executed before the
between the parties Mediation and Conciliation Centre of this Court is on
record as Mark ‘B’.
7.
The learned counsel for the petitioner while referring to the
settlement Mark ‘B’ submits that the matter has been settled with the
respondent-complainant and the entire due amount of Rs.4,50,000/- has been
paid by the accused-petitioner. Therefore, the matter has been settled
amicably to the entire satisfaction of both the parties and now the parties shall
not claim any further amount or costs in this matter. Both the parties have
agreed to relinquish all their rights arising out of t
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