HP HC | While exercising power under S. 147 of NI Act the Court can proceed to compound the offence even after recording of conviction

Himachal Pradesh High Court: Sandeep Sharma, J. compounded and quashed the impugned judgments and acquitted the petitioner of the charge framed under Section 138 of Negotiable Instruments Act, 1881

The brief facts of the case are that the respondent-complainant instituted a complaint under Section 138 of the Act against the present petitioner-accused, alleging he lent sum of Rs 1,00,000 to the petitioner-accused to buy a car. The petitioner accused with a view to discharge his liability issued a cheque in favour of the complainant which was dishonored on its presentation on account of insufficient funds. Since petitioner-accused failed to make the payment within the stipulated period despite issuance of legal notice, respondent/complainant initiated proceedings under Section 138 of the Act. 

The trial Court held the petitioner-accused guilty under Section 138 of the Act and sentenced him accordingly. Being aggrieved, accused preferred an appeal in the court of learned Sessions Judge, Una, which also came to be upheld by the trial court. Hence the present petition seeking acquittal and setting aside of the judgments of conviction recorded by the courts.

The counsel Dheeraj K. Vashishat for the petitioner informed the Court that parties have resolved to settle their dispute amicably inter-se for a total sum of Rs 1,15,000 and Rs 15,000 stands already paid, remaining amount shall be paid on or before 18.2.2020. It was further submitted by learned counsel for the parties that entire sum of Rs 1,15,000 stands received by the respondent complainant in terms of compromise arrived inter-se between them. 

The counsel Leena Guleria for respondent states that since amount in terms of compromise arrived inter-se parties stands received by the complainant, the complainant shall have no objection in case prayer made on behalf of the petitioner for compounding the offence is accepted. Respondent-complainant (Rahul Kumar), who is present in Court stated on oath that he of his own volition and without there being any external pressure has entered into compromise stated to have no objection in case petitioner is acquitted of the charge under Section 138 of the Negotiable Instruments Act. 

The Court while exercising power under Section 147 of the Act and relying on the Judgment titled Damodar S. Prabhu v. Sayed Babalal H., (2010) 5 SCC 663, wherein it has been categorically held that, while exercising power under Section 147 of the Act, Court can proceed to compound the offence even after recording of conviction.

Consequently, in view of the above, the present matter was compounded and impugned judgments quashed and set-aside and the petitioner-accused was acquitted of the charge framed against him under Section 138 of the Act.

In view of the above, the petition was disposed of. [Satish Kumar v. Rahul Kumar, 2020 SCC OnLine HP 338, decided by 03-03-2020]

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