Case Note & Summary
The case involves a criminal revision application filed by Prema, the applicant, against the State of Maharashtra and Shobha Pareek, the respondent, arising from a complaint under Section 138 of the Negotiable Instruments Act, 1881 for dishonour of two cheques totaling Rs. 37,000/-. The applicant had been convicted by the trial court and the appeal was dismissed by the Sessions Court. During the revision hearing, the applicant filed Criminal Application No. 56 of 2011 under Section 147 of the NI Act seeking compounding of the offence. The applicant's counsel submitted that the applicant had already deposited Rs. 12,500/- at the time of preferring the appeal and was making payment of Rs. 24,500/- by demand draft to make up the total liability of Rs. 37,000/- under the two cheques. Additionally, the applicant was ready to pay 15% of the total liability amounting to Rs. 5,500/- by way of costs as per the guidelines of the Supreme Court in Damodar S. Prabhu v. Sayed Babalal H. (2010) 5 SCC 663. The respondent no. 2, Shobha Pareek, who was present in court, accepted the demand draft and confirmed receipt of the full cheque amount. The court allowed the compounding application, set aside the conviction and sentence, and acquitted the applicant. The revision application was disposed of accordingly.
Headnote
A) Negotiable Instruments Act - Compounding of Offence - Section 147 - Dishonour of Cheque - The applicant sought compounding of the offence under Section 138 of the NI Act at the revisional stage. The court allowed the application under Section 147 of the NI Act, noting that the applicant had deposited the entire cheque amount of Rs. 37,000/- and paid 15% costs of Rs. 5,500/- as per Supreme Court guidelines. The court held that upon compounding, the conviction and sentence stand set aside and the applicant is acquitted. (Paras 1-3)
Issue of Consideration
Whether the offence under Section 138 of the Negotiable Instruments Act, 1881 can be compounded at the revisional stage and whether the applicant is entitled to acquittal upon compounding.
Final Decision
The court allowed Criminal Application No. 56 of 2011 for compounding, set aside the conviction and sentence, and acquitted the applicant. The revision application was disposed of accordingly.
Law Points
- Compounding of offence under Section 147 of Negotiable Instruments Act
- 1881
- Payment of cheque amount with 15% costs as per Supreme Court guidelines
- Withdrawal of criminal complaint upon compounding
Case Details
2011 LawText (BOM) (08) 148
Criminal Revision Application No. 316 of 2007
Mr G.M. Shitut for applicant, Mr D.B. Yengal APP for respondent-1 State, Mr Syed Owais Ahmed for respondent no.2
Prema wife of Dalbahadur Mall
The State of Maharashtra, Shobha Pareek
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Nature of Litigation
Criminal revision application against conviction under Section 138 of the Negotiable Instruments Act, 1881 for dishonour of cheques.
Remedy Sought
The applicant sought compounding of the offence under Section 147 of the NI Act and acquittal.
Filing Reason
The applicant was convicted by the trial court and the appeal was dismissed by the Sessions Court; hence, the revision was filed.
Previous Decisions
The trial court convicted the applicant under Section 138 of the NI Act; the Sessions Court dismissed the appeal.
Issues
Whether the offence under Section 138 of the Negotiable Instruments Act can be compounded at the revisional stage.
Whether the applicant is entitled to acquittal upon compounding.
Submissions/Arguments
Applicant's counsel submitted that the applicant had deposited Rs. 12,500/- earlier and was paying Rs. 24,500/- by demand draft to make up the total liability of Rs. 37,000/- under two cheques.
Applicant's counsel further submitted that the applicant was ready to pay 15% of the total liability as costs as per Supreme Court guidelines in Damodar S. Prabhu v. Sayed Babalal H.
Respondent no. 2 accepted the demand draft and confirmed receipt of the full cheque amount.
Ratio Decidendi
Under Section 147 of the Negotiable Instruments Act, 1881, the court has the power to compound the offence at any stage, including revisional stage. Upon payment of the entire cheque amount and 15% costs as per Supreme Court guidelines, the offence is compounded, and the accused is entitled to acquittal.
Judgment Excerpts
Heard learned counsel for the parties.
Learned counsel for the applicant submits that the applicant has already deposited an amount of Rs. 12,500/- at the time of preferring appeal and today she is making payment of Rs. 24,500/- by demand draft drawn on State Bank of India in favour of respondent no. 2 to make up the total liability of Rs. 37,000/- under two cheques.
In the result, Criminal Application No. 56 of 2011 is allowed. The offence is compounded. Consequently, the conviction and sentence are set aside. The applicant is acquitted.
Procedural History
The applicant was convicted by the trial court under Section 138 of the Negotiable Instruments Act. The appeal before the Sessions Court was dismissed. The applicant then filed Criminal Revision Application No. 316 of 2007 before the High Court. During the revision hearing, the applicant filed Criminal Application No. 56 of 2011 under Section 147 of the NI Act for compounding of the offence.
Acts & Sections
- Negotiable Instruments Act, 1881: 138, 147
