Case Note & Summary
The petitioner, Lalita Kamal Vyas, was convicted by the Metropolitan Magistrate, 48th Court, Andheri, Mumbai, in C.C. No. 4281/SS/2017 for an offence under Section 138 of the Negotiable Instruments Act, 1881. The conviction was upheld by the Sessions Court in Criminal Revision Application No. 1104 of 2018. The petitioner then filed a Criminal Writ Petition before the Bombay High Court challenging both orders. During the pendency of the petition, the parties amicably resolved their dispute. The petitioner and respondent No. 2 (the original complainant) entered into a memorandum of understanding/consent terms dated 01.10.2019. Respondent No. 2 filed an affidavit stating that he had no grievance against the petitioner. Both parties, through their counsel, jointly prayed for the petition to be allowed and disposed of in light of the settlement. Respondent No. 2 was personally present in court and confirmed the settlement. The court, taking into account the settlement and the affidavit, allowed the petition, quashed the impugned orders, and acquitted the petitioner of the offence under Section 138 of the NI Act. The court held that since the offence is compoundable and the parties have settled, the proceedings should be quashed.
Headnote
A) Criminal Law - Negotiable Instruments Act - Compounding of Offence - Section 138 - Settlement - The petitioner was convicted under Section 138 of the Negotiable Instruments Act, 1881. The parties subsequently settled the dispute and filed a memorandum of understanding. The respondent-complainant filed an affidavit stating no grievance. The court, considering the settlement and the presence of the complainant, quashed the conviction and set aside the orders of the trial court and revisional court. Held that the offence under Section 138 is compoundable and the settlement warrants quashing of proceedings (Paras 1-7).
Issue of Consideration
Whether criminal proceedings under Section 138 of the Negotiable Instruments Act, 1881 can be quashed upon settlement between the complainant and the accused.
Final Decision
The petition is allowed. The impugned order dated 8th March 2018 passed by the Metropolitan Magistrate, 48th Court, Andheri, Mumbai in C.C. No. 4281/SS/2017 and the order dated 19th January 2019 passed by the Sessions Court in Criminal Revision Application No. 1104 of 2018 are set aside. The petitioner is acquitted of the offence under Section 138 of the Negotiable Instruments Act, 1881. Rule is made absolute accordingly.
Law Points
- Compounding of offence under Section 138 NI Act
- Settlement between parties
- Quashing of criminal proceedings
Case Details
2019 LawText (BOM) (10) 165
Criminal Writ Petition No. 832 of 2019
Mr. Kapil P. Dave for Petitioner, Mr. Rajender Singh Saluja for Respondent No. 2, Mr. A.R. Patil, APP for Respondent – State
The State of Maharashtra, Kalpesh Bodra
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Nature of Litigation
Criminal Writ Petition challenging conviction under Section 138 of Negotiable Instruments Act, 1881 and revisional order upholding conviction.
Remedy Sought
Petitioner sought setting aside of the order dated 8th March 2018 passed by the Metropolitan Magistrate, 48th Court, Andheri, Mumbai in C.C. No. 4281/SS/2017 and the order dated 19th January 2019 passed by the Sessions Court in Criminal Revision Application No. 1104 of 2018.
Filing Reason
Petitioner was convicted under Section 138 of the Negotiable Instruments Act, 1881 and the revisional court upheld the conviction.
Previous Decisions
Trial court convicted the petitioner; Sessions Court dismissed revision.
Issues
Whether the conviction under Section 138 of the Negotiable Instruments Act, 1881 should be quashed upon settlement between the parties.
Submissions/Arguments
Petitioner and Respondent No. 2 submitted that the entire dispute is resolved and they have arrived at a settlement. Respondent No. 2 filed an affidavit stating no grievance against the Petitioner. Both counsel jointly prayed for allowing the petition.
Ratio Decidendi
The offence under Section 138 of the Negotiable Instruments Act, 1881 is compoundable. When the parties have settled the dispute and the complainant has no grievance, the conviction and proceedings can be quashed to promote amicable resolution.
Judgment Excerpts
Learned counsel appearing for Petitioner and Respondent No. 2 submit that, the entire dispute is resolved, and the Petitioner and Respondent No. 2 have arrived at a settlement and Respondent No. 2 has no grievance against the Petitioner.
Respondent No. 2 is personally present in the Court. On a query put to him, he states that, he has no grievance against the Petitioner and the dispute is amicably settled.
Procedural History
The petitioner was convicted by the Metropolitan Magistrate, 48th Court, Andheri, Mumbai in C.C. No. 4281/SS/2017 on 8th March 2018. The petitioner filed Criminal Revision Application No. 1104 of 2018 before the Sessions Court, which was dismissed on 19th January 2019. The petitioner then filed Criminal Writ Petition No. 832 of 2019 before the Bombay High Court. During the pendency of the writ petition, the parties settled the dispute and filed a memorandum of understanding and an affidavit. The High Court allowed the petition on 4th October 2019.
Acts & Sections
- Negotiable Instruments Act, 1881: 138
