{"id":239360,"date":"2020-11-19T13:15:32","date_gmt":"2020-11-19T07:45:32","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=239360"},"modified":"2020-11-20T11:15:57","modified_gmt":"2020-11-20T05:45:57","slug":"hp-hc-legislative-intent-of-ni-act-1881-is-not-to-send-the-people-to-suffer-incarceration-but-to-execute-recovery-of-cheque-amount-by-showing-teeth-of-penalty-loss-conviction-set-aside","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/11\/19\/hp-hc-legislative-intent-of-ni-act-1881-is-not-to-send-the-people-to-suffer-incarceration-but-to-execute-recovery-of-cheque-amount-by-showing-teeth-of-penalty-loss-conviction-set-aside\/","title":{"rendered":"HP HC |\u00a0Legislative intent of NI Act, 1881 is not to send the people to suffer incarceration but to execute recovery of cheque amount by showing teeth of penalty loss; conviction set aside"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Himachal Pradesh High Court: <\/strong>Anoop Chitkara, J., setting aside the conviction against the petitioner, discussed the effect of compromise between the parties in cases attracting Section 138 of Negotiable Instruments Act, 1881 and the cases of compounding of offence under the same.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\"><strong>Background<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The petitioner stands convicted under Section 138 of the Negotiable Instruments Act, 1881, vide order dated 26-07-2018 by the Additional Chief Judicial Magistrate, Shimla. Application under Section 389 Code of Criminal Procedure, 1973, was made by the petitioner before the Sessions Judge, which stands dismissed in default by order dated 07-01-2019. The petition hereby was moved invoking Inherent powers of the High Court under Section 482 Code of Criminal Procedure, 1973, against the said conviction.<strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\"><strong>Observations<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The Court reiterating the objective of the Negotiable Instruments Act, 1881, said, <em>\u201cThe jurisprudence behind the N.I. Act is that the business transactions are honoured. The legislative intention is not to send the people to suffer incarceration because their cheque was bounced. These proceedings are simply to execute the recovery of cheque amount by showing teeth of penalty loss.\u201d <\/em>\u00a0Considering the peculiar facts of the present case and the power of Court to interfere in matters like such, the Court observed, <em>\u201cThis Court has inherent powers under Section 482 of the Code of Criminal Procedure which are further supported by Section 147 of the N.I. Act to interfere in this kind of matter where parties have paid the entire money and where the complainant does not object to clear all the proceedings.\u201d <\/em>Reliance was placed on <em>Shakuntala Sawhney v. Kaushalya Sawhney,<\/em> <a href=\"http:\/\/www.scconline.com\/DocumentLink\/KC6Lv388\">(1980) 1 SCC 63<\/a>, wherein the Supreme Court held<strong>, <em>\u201cThe finest hour of Justice arise propitiously when parties, despite falling apart, bury the hatchet and weave a sense of fellowship or reunion.\u201d<\/em><\/strong> \u00a0With respect to the compromise made and its effect over the FIR, the Court said, <em>\u201c(\u2026) It is a fit case where the inherent jurisdiction of the High Court under Section 482 of the Code of Criminal Procedure read with 147 of Negotiable Instruments Act, is invoked to compound the offence and consequently to quash the above-mentioned FIR and consequent proceedings\u201d <\/em>The Court further reproduced the guidelines as laid down by <em>Damodar S. Prabhu v. Sayed Babalal H.<\/em><strong>,<\/strong> <a href=\"http:\/\/www.scconline.com\/DocumentLink\/0a653416\">(2010) 5 SCC 663<\/a>, with respect to the compounding of offences under the Negotiable Instruments Act, 1881.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\"><strong>Decision<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">While setting aside the impugned order of conviction by the Additional Chief Judicial Magistrate, the Court directed the petitioner to be released from the prison with immediate effect.[Gaurav Sharma v. Ishwari Nand, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/xcIa3BXX\"><b>2020 SCC OnLine HP 2464<\/b><\/a>, decided on 13-11-2020]<\/p>\n<hr \/>\n<p><span style=\"color: #008000;\">Sakshi Shukla, Editorial Assistant has up this story together<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Himachal Pradesh High Court: Anoop Chitkara, J., setting aside the conviction against the petitioner, discussed the effect of compromise between the parties <\/p>\n","protected":false},"author":67011,"featured_media":222107,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[3468,29785,30606,44126,13021],"class_list":["post-239360","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-conviction","tag-law","tag-ni-act","tag-recovery-of-cheque-amount","tag-section-482-crpc"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>HP HC |\u00a0Legislative intent of NI Act, 1881 is not to send the people to suffer incarceration but to execute recovery of cheque amount by showing teeth of penalty loss; 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Narayana Pisharadi J., allowed a criminal revision petition in part in a matter relating to Section 138 of Negotiable Instruments Act, 1881. In the present case, the accused had obtained an amount of Rs 5, 00,000 from the complainant on the promise that he would arrange\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":302661,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/09\/29\/prima-facie-evidence-undated-cheque-security-in-dishonor-of-cheque-case-calcutta-hc-scc-blog\/","url_meta":{"origin":239360,"position":1},"title":"&#8216;Need to interpret Section 138 in a manner that preserves the law\u2019s efficacy&#8217;: Calcutta High Court sets aside conviction","author":"Ritu","date":"September 29, 2023","format":false,"excerpt":"In the instant matter of cheque bounce, on the date of presentation of the cheque, the company which allegedly issued the cheque was no more existence.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"calcutta high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":226643,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/03\/06\/hp-hc-while-exercising-power-under-s-147-of-ni-act-the-court-can-proceed-to-compound-the-offence-even-after-recording-of-conviction\/","url_meta":{"origin":239360,"position":2},"title":"HP HC | While exercising power under S. 147 of NI Act the Court can proceed to compound the offence even after recording of conviction","author":"Bhumika Indulia","date":"March 6, 2020","format":false,"excerpt":"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\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":207213,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/12\/25\/presumption-under-section-118-of-ni-act-may-legally-be-inferred-where-where-signature-on-cheque-admitted-by-accused\/","url_meta":{"origin":239360,"position":3},"title":"Presumption under Section 118 of NI Act may legally be inferred where signature on cheque admitted by accused","author":"Bhumika Indulia","date":"December 25, 2018","format":false,"excerpt":"Bombay High Court: A Single Judge bench comprising of M.G. Giratkar, J. dismissed a revision petition filed against the judgment of Judicial Magistrate and confirmed by Additional Sessions Judge, Nagpur whereby the petitioner was convicted for offence punishable under Section 138 of Negotiable Instruments Act, 1881. The petitioner and the\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":262982,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/03\/03\/to-prove-that-cheque-amount-was-larger-than-debt-due-can-defence-of-issuer-be-looked-at-stage-of-issuing-summons\/","url_meta":{"origin":239360,"position":4},"title":"To prove that cheque amount was larger than debt due, can defence of Issuer be looked at stage of issuing summons? Del HC explains","author":"Bhumika Indulia","date":"March 3, 2022","format":false,"excerpt":"Delhi High Court: While addressing a matter revolving around Section 138 of the Negotiable Instruments Act, 1881, Subramonium Prasad, J., held that Courts should primarily proceed on the averments in the complaint, and the defence of the accused cannot be looked at the stage of issuing summons unless it can\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Delhi_New-logo.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Delhi_New-logo.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Delhi_New-logo.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Delhi_New-logo.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Delhi_New-logo.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":282178,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/01\/23\/supreme-court-sets-aside-madras-high-courts-sentence-in-section-138-ni-act-modifies-decree\/","url_meta":{"origin":239360,"position":5},"title":"Section 138 NI Act| Supreme Court sets aside Madras High Court&#8217;s reversal of acquittal in a cheque bouncing case","author":"Editor","date":"January 23, 2023","format":false,"excerpt":"The Supreme Court observed that the scope of interference in an appeal against acquittal is limited and that the Madras High Court \u2018could not have interfered with the finding of acquittal recorded by the learned Trial Court.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/01\/MicrosoftTeams-image-164.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/239360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67011"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=239360"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/239360\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/222107"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=239360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=239360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=239360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}