Case Note & Summary
The applicant, Santosh s/o Namdevrao Patait, was the original accused in a complaint filed by respondent no.2, Narhari s/o Devrao Komatwar, under Section 138 of the Negotiable Instruments Act, 1881. The complainant alleged that he supplied bricks worth Rs.1,00,000 to the accused, who paid Rs.27,000 and issued a cheque for Rs.73,000 on 30.1.2006, requesting it to be presented in July 2006. When presented, the cheque was dishonoured due to insufficient funds. A legal notice was sent on 7.8.2006 and received by the accused on 12.8.2006, but payment was not made. The Judicial Magistrate, First Class, Purna, convicted the accused on 16.1.2007 in S.C.C. No. 323 of 2006, sentencing him to six months rigorous imprisonment and a fine of Rs.1,000. The accused appealed, and the Sessions Judge, Parbhani, in Criminal Appeal No. 13 of 2007, modified the sentence on 28.6.2011 to three months rigorous imprisonment and a fine of Rs.80,000, with Rs.73,000 to be paid as compensation to the complainant. The accused then filed a criminal revision before the High Court. During the revision, the parties filed a compromise purshis for compounding the offence. The High Court, after verifying the consent of the complainant and the voluntary nature of the compromise, allowed the compounding under Section 147 of the Negotiable Instruments Act read with Section 320 of the Code of Criminal Procedure. The court quashed the conviction and sentence, set aside the judgments of the lower courts, and acquitted the accused. The fine amount, if already deposited, was directed to be paid to the complainant.
Headnote
A) Negotiable Instruments Act - Compounding of Offence - Section 138 read with Section 147 - The applicant/accused was convicted under Section 138 of the Negotiable Instruments Act for dishonour of cheque. During revision, parties filed compromise purshis for compounding the offence. The court allowed the compounding and quashed the conviction and sentence, holding that the offence under Section 138 is compoundable under Section 147 of the Act. (Paras 2-5)
Issue of Consideration
Whether the conviction and sentence under Section 138 of the Negotiable Instruments Act can be quashed upon compounding of the offence between the parties.
Final Decision
The court allowed the compounding of the offence under Section 147 of the Negotiable Instruments Act read with Section 320 of the Code of Criminal Procedure. The conviction and sentence imposed by the trial court and appellate court were quashed and set aside. The applicant was acquitted of the offence under Section 138 of the Negotiable Instruments Act. The fine amount, if already deposited, was directed to be paid to the complainant.
Law Points
- Compounding of offence under Section 138 of Negotiable Instruments Act is permissible with consent of complainant
- Section 147 of Negotiable Instruments Act
- Section 320 of Code of Criminal Procedure
