Case Note & Summary
The petitioner, Lalita Kamal Vyas, filed a Criminal Writ Petition before the Bombay High Court challenging an order dated 6th March 2018 passed by the Metropolitan Magistrate, 48th Court, Andheri, Mumbai in C.C. No. 4161/SS/2017, and the order dated 19th January 2019 passed in Criminal Revision Application No. 1103 of 2018 by the Sessions Court at Mumbai. The dispute pertained to a complaint under Section 138 of the Negotiable Instruments Act, 1881 for dishonour of cheque. During the pendency of the petition, the parties arrived at a settlement. The petitioner tendered a memorandum of understanding/consent terms dated 1st October 2019, which was taken on record. Respondent No. 2, Viren Premjibhai Italia, filed an affidavit confirming the settlement and stating that he had no grievance against the petitioner. Both 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 voluntary nature of the settlement. The court, considering the settlement and the affidavit, allowed the petition, set aside the impugned orders, and quashed the proceedings in C.C. No. 4161/SS/2017. Rule was made absolute accordingly.
Headnote
A) Criminal Law - Negotiable Instruments Act - Compounding of Offence - Section 138 Negotiable Instruments Act, 1881 - The petitioner sought quashing of proceedings under Section 138 of the NI Act. The parties entered into a settlement and filed consent terms. The court, upon verifying the voluntary nature of the settlement and the presence of the complainant, allowed the petition and quashed the proceedings. Held that when the dispute is resolved amicably, the proceedings can be quashed to secure the ends of justice (Paras 1-7).
Issue of Consideration
Whether the criminal proceedings under Section 138 of the Negotiable Instruments Act, 1881 should be quashed in light of the settlement between the parties.
Final Decision
The petition is allowed. The impugned order dated 6th March 2018 passed in C.C. No. 4161/SS/2017 by the Learned Metropolitan Magistrate, 48th Court, Andheri, Mumbai and the order dated 19th January 2019 passed in Criminal Revision Application No. 1103 of 2018 by the Hon’ble Sessions Court at Mumbai are set aside. The proceedings in C.C. No. 4161/SS/2017 are quashed. Rule is made absolute.
Law Points
- Settlement of dispute
- compounding of offence under Section 138 NI Act
- quashing of proceedings upon compromise
Case Details
2019 LawText (BOM) (10) 86
Criminal Writ Petition No. 836 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 and Viren Premjibhai Italia
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Criminal writ petition challenging orders in a cheque dishonour case under Section 138 of the Negotiable Instruments Act, 1881.
Remedy Sought
Petitioner sought setting aside of the order dated 6th March 2018 passed by the Metropolitan Magistrate, 48th Court, Andheri, Mumbai in C.C. No. 4161/SS/2017 and the order dated 19th January 2019 passed in Criminal Revision Application No. 1103 of 2018 by the Sessions Court at Mumbai.
Filing Reason
The petitioner was aggrieved by the orders passed in the proceedings under Section 138 of the Negotiable Instruments Act, 1881.
Previous Decisions
The Metropolitan Magistrate passed an order on 6th March 2018 in C.C. No. 4161/SS/2017, and the Sessions Court passed an order on 19th January 2019 in Criminal Revision Application No. 1103 of 2018.
Issues
Whether the criminal proceedings under Section 138 of the Negotiable Instruments Act, 1881 should be quashed in light of the settlement between the parties.
Submissions/Arguments
The parties have settled the dispute and filed consent terms. Respondent No. 2 has no grievance against the petitioner. Both counsel jointly pray for allowing the petition.
Ratio Decidendi
When the parties have amicably settled the dispute and the complainant has no grievance, the proceedings under Section 138 of the Negotiable Instruments Act can be quashed to secure the ends of justice.
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 specific query to Respondent No. 2, he stated that the dispute between the parties is amicably settled and he has no objection if the petition is allowed.
Procedural History
The petitioner filed Criminal Writ Petition No. 836 of 2019 before the Bombay High Court challenging the order dated 6th March 2018 passed by the Metropolitan Magistrate, 48th Court, Andheri, Mumbai in C.C. No. 4161/SS/2017 and the order dated 19th January 2019 passed in Criminal Revision Application No. 1103 of 2018 by the Sessions Court at Mumbai. During the pendency of the petition, the parties settled the dispute and filed consent terms. The court allowed the petition and quashed the proceedings.
Acts & Sections
- Negotiable Instruments Act, 1881: 138
