Offence under S. 138 NIA to be compounded upon agreement to that effect between parties, subject to conditions

Delhi High Court: A Single Judge Bench of the Delhi High Court comprising of Sanjeev Sachdeva, J., disposed of a petition seeking quashing of a conviction under Section 138 of the Negotiable Instruments Act, 1881 (NIA), the sentence being SI for one month and compensation of Rs 1.6 lakhs to the complainant.

The petitioner filed an application under Section 147 of the NIA, seeking compounding of the offence. The subject cheque was for a sum of Rs. 80,000. The petitioner handed over a pay order in the sum of Rs 1,60,000 to Respondent 2 in Court. Respondent 2 accepted the Pay Order and submitted that she did not wish to press the complaint and is willing to compound the offence. The petitioner also submitted that he is willing to deposit the cost, as directed by the Supreme Court in Damodar S. Prabhu v. Sayyad Babulal, (2010) 5 SCC 663 i.e 15% considering this was an appeal. The Court, noting the circumstances, compounded the offence, acquitting the petitioner. Consequently, the next date of hearing was cancelled and the petition as well as application, disposed of. [Surinder Kumar Mehra v. State, 2018 SCC OnLine Del 7233, decided on 12.02.2018]

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