Supreme Court Allows Appellant in Negotiable Instruments Act Case Due to Compromise Between Parties. Compounding of Offence Under Section 138 of the Negotiable Instruments Act, 1881, Led to Acquittal of the Appellant.

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Case Note & Summary

The case involved an appeal against a conviction under Section 138 of the Negotiable Instruments Act, 1881. The appellant, Rajendran, was convicted and sentenced to pay a fine of Rs. 2.00 lakhs as compensation, with a default sentence of three months imprisonment if the fine was not paid. During the appeal, both parties reached a compromise, with the respondent confirming receipt of the full amount and stating no further claims against the appellant. The court considered this compromise and noted that the offence under Section 138 is compoundable. Consequently, the court allowed the appeal, set aside the conviction and sentence, and acquitted the appellant. The appellant was ordered to be released from custody immediately. The judgment was delivered on April 6, 2009.

Headnote

A) Criminal Law - Compounding of Offences - Acquittal after Compromise - Negotiable Instruments Act, 1881, Section 138 - The court accepted the compromise between the parties and allowed the appeal, leading to the acquittal of the appellant. The offence under Section 138 being compoundable, the conviction and sentence were set aside, and the appellant was released from custody (Paras Not mentioned).

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Issue of Consideration

Whether the conviction under Section 138 of the Negotiable Instruments Act can be set aside based on a compromise between the parties.

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Final Decision

The Supreme Court allowed the appeal, set aside the conviction and sentence, and acquitted the appellant under Section 138 of the Negotiable Instruments Act. The appellant was ordered to be released from custody immediately.

Law Points

  • Compounding of offences
  • Section 138 Negotiable Instruments Act
  • 1881
  • Section 357 Code of Criminal Procedure
  • 1973
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Case Details

2009 LawText (SC) (04) 24

Criminal Appeal No. 679 of 2009

2009-04-06

D.K. Jain, R.M. Lodha

Rajendran

N. Mohanan & Anr.

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Nature of Litigation

Criminal appeal against conviction under the Negotiable Instruments Act.

Remedy Sought

Appellant sought to set aside the conviction and sentence.

Filing Reason

Appeal against the final order of conviction and sentence.

Previous Decisions

Conviction upheld by the High Court of Kerala.

Issues

Whether the conviction can be set aside based on a compromise. Whether the offence under Section 138 is compoundable.

Submissions/Arguments

Both parties confirmed the compromise and no further claims. The appellant sought acquittal based on the settlement.

Ratio Decidendi

The court held that the offence under Section 138 of the Negotiable Instruments Act is compoundable, and upon compromise between the parties, the conviction can be set aside.

Judgment Excerpts

The offence under Section 138 of the Act being compoundable, we allow the prayer made on behalf of the contesting parties and dispose of the appeal on the basis of the said settlement. The order of conviction and sentence recorded by the Courts below is set aside and the appellant is acquitted of the charge under Section 138 of the Act.

Procedural History

The appeal was filed against the final order dated May 26, 2008, by the High Court of Kerala, which upheld the conviction and modified the sentence.

Acts & Sections

  • Negotiable Instruments Act, 1881: Section 138
  • Code of Criminal Procedure, 1973: Section 357
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