Legal Issue 1: Whether the High Court in its revisional jurisdiction under Section 397 of the Cr.P.C. can accept consent terms and allow compounding of the offence under Section 138 of the Negotiable Instruments Act.

Legal Principle: Section 147 of the N.I. Act provides that all offences under the Act are compoundable, allowing flexibility to settle disputes even post-conviction, subject to the High Court’s discretion in revisional proceedings.

The High Court holds that it can accept consent terms for compounding offences under Section 138 of the N.I. Act in its revisional jurisdiction under Section 397 of the Cr.P.C., balancing procedural requirements and justice.

Introduction (Paras 1-5):

• The judgment involves multiple criminal revision applications arising from convictions under Section 138 of the Negotiable Instruments Act. The applicants seek to compound the offences post-conviction by filing consent terms.

Revisional Powers (Paras 6-10):

• Discusses the scope of revisional powers under Sections 397 and 401 of the Cr.P.C. and whether these powers can accommodate compounding of offences after conviction.

Relevant Statutory Provisions (Paras 11-15):

• Explores the interplay of Sections 397, 401, and 482 of the Cr.P.C. and Section 147 of the N.I. Act, emphasizing the non-obstante clause in Section 147 that overrides procedural restrictions under the Cr.P.C.

Case Precedents (Paras 16-20):

• Analyzes judgments from the Supreme Court and other High Courts, particularly the cases of Meters and Instruments Pvt. Ltd. and In Re: Expeditious Trial of Cases Under Section 138 of N.I. Act.

Legal and Social Context (Paras 21-25):

• Examines the importance of facilitating settlements in cheque dishonor cases to ensure justice and decongest the judiciary.

Final Observations (Paras 26-30):

• Highlights the Court’s responsibility to ensure that the compromise is genuine and not coercive, recommending token costs in cases of delayed settlement.

Acts and Sections Discussed:

• Negotiable Instruments Act, 1881:
  • Section 138: Dishonor of cheque.
  • Section 147: Offences to be compoundable.
• Code of Criminal Procedure, 1973:
  • Section 397: Revisional powers of the High Court and Sessions Court.
  • Section 401: High Court’s powers in revision.
  • Section 482: Inherent powers of the High Court.
  • Section 320: Compounding of offences.

Ratio Decidendi (Legal Reasoning):

• The High Court affirmed its discretionary powers under Section 397 of the Cr.P.C. to accept consent terms in cheque dishonor cases, supported by Section 147 of the N.I. Act. It recognized that the primary objective of the N.I. Act is compensatory rather than punitive, allowing for post-conviction settlements in the interest of justice.

Subjects:

Negotiable Instruments Act, Revisional Jurisdiction, Compounding of Offences

Cheque Dishonor, Section 138 N.I. Act, Revisional Powers, High Court, Consent Terms, Compounding Offence, Judicial Discretion