Case Note & Summary
The case involved a criminal appeal arising from proceedings under Section 138 of the Negotiable Instruments Act, where the petitioner, Cranex Ltd., and another, challenged an order of conviction and sentence passed by the XV Metropolitan Magistrate, Hyderabad. The conviction included a six-month rigorous imprisonment and a fine of Rs. 10,000. During the pendency of the appeal, interlocutory applications filed by the appellants were dismissed, leading to a revision case in the High Court, which was also dismissed. Subsequently, a settlement of the money dispute occurred, with the appellant depositing the dishonoured cheque amount of Rs. 5,96,688 in the court. The Supreme Court, upon reviewing the developments, decided to set aside the High Court's order and remand the matter to the appellate court for reconsideration of the appeal in light of the settlement. The court emphasized that the appellate court could consider the payment made and decide whether to maintain the conviction or impose a fine, as per the provisions of Section 138. The court also recorded the respondent's statement that they would not press for conviction if the deposited amount was allowed to be withdrawn. The appeal was disposed of with directions for the appellate court to consider these factors.
Headnote
A) Criminal Law - Settlement during Appeal - Consideration of Settlement - Negotiable Instruments Act, 1881, Section 138 - The Supreme Court remanded the case to the appellate court to consider the settlement of the money dispute between the parties during the pendency of the appeal. The court directed that the appellate court should take into account the subsequent payment made by the appellant and dispose of the appeal in accordance with law, including the possibility of setting aside the conviction (Paras 1-2).
Issue of Consideration
Whether the appellate court should consider the settlement of the money claim during the pendency of the criminal appeal under Section 138 of the Negotiable Instruments Act.
Final Decision
The Supreme Court set aside the High Court's order and remanded the matter to the VI Additional Metropolitan Sessions Judge, Secunderabad, directing the appellate court to consider the settlement and subsequent payment made by the appellant.
Law Points
- Settlement during appeal
- Interlocutory applications
- Remand to appellate court
- Section 138 Negotiable Instruments Act
