Case Note & Summary
The petitioner, Mrs. Usha Badri Poonawalla, filed a Criminal Writ Petition under Article 227 of the Constitution of India and Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of a complaint filed by the respondent, K. Kurien Babu, under Section 138 of the Negotiable Instruments Act, 1881. The complaint pertained to a dishonoured cheque, and the learned Judicial Magistrate First Class, Court No. 5, Pune, had directed framing of charges against the petitioner. The petitioner contended that the dispute between the parties had been composed by a Memorandum of Understanding dated 9th September 1997, and therefore the proceedings should be quashed. The respondent appeared in person and filed written submissions. The court, after hearing the parties, allowed the petition, quashing the complaint and the proceedings, holding that the composition of the dispute through the Memorandum of Understanding was a valid ground for quashing. The court did not elaborate on the terms of the Memorandum of Understanding but accepted the fact of composition as sufficient to terminate the criminal proceedings.
Headnote
A) Criminal Law - Negotiable Instruments Act - Composition of Offence - Section 138 Negotiable Instruments Act, 1881 read with Section 482 Code of Criminal Procedure, 1973 - The petitioner sought quashing of complaint and proceedings under Section 138 NI Act on the ground that the dispute was composed by a Memorandum of Understanding dated 9th September 1997 - The Court held that the composition of the dispute is a valid ground for quashing the proceedings, as the parties had settled their differences - The Court allowed the petition and quashed the complaint and proceedings (Paras 1-3).
Issue of Consideration
Whether the criminal proceedings under Section 138 of the Negotiable Instruments Act, 1881 can be quashed on the basis of a Memorandum of Understanding entered into between the parties, which amounts to composition of the dispute.
Final Decision
The court allowed the petition and quashed the complaint and the proceedings in the complaint filed by the respondent No.1 under Section 138 of the Negotiable Instruments Act, 1881.
Law Points
- Composition of offence under Section 138 of Negotiable Instruments Act
- 1881
- Quashing of criminal proceedings under Section 482 CrPC
- Effect of Memorandum of Understanding on pending criminal proceedings
Case Details
2005 LawText (BOM) (09) 39
Criminal Writ Petition No. 1357 of 2005
S.R. Chitnis, Senior Counsel with J.B. Kocheta for the Petitioner; Respondent No.1 in person; K.V. Saste, A.P.P. for the Respondent No.2
Mrs. Usha Badri Poonawalla
K. Kurien Babu, State of Maharashtra
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Nature of Litigation
Criminal writ petition under Article 227 of the Constitution of India and Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of a complaint under Section 138 of the Negotiable Instruments Act, 1881.
Remedy Sought
The petitioner sought quashing of the order framing charges and the entire proceedings in the complaint filed by the respondent under Section 138 of the Negotiable Instruments Act, 1881, on the ground of composition of the dispute through a Memorandum of Understanding dated 9th September 1997.
Filing Reason
The petitioner filed the petition to quash the criminal proceedings initiated by the respondent under Section 138 of the Negotiable Instruments Act, 1881, on the basis that the dispute had been composed by a Memorandum of Understanding.
Previous Decisions
The learned Judicial Magistrate First Class, Court No.5, Pune, had passed an order below Exh.1 directing framing of charges against the petitioner under Section 138 of the Negotiable Instruments Act, 1881.
Issues
Whether the criminal proceedings under Section 138 of the Negotiable Instruments Act, 1881 can be quashed on the basis of a Memorandum of Understanding entered into between the parties, which amounts to composition of the dispute.
Submissions/Arguments
The petitioner argued that the dispute between the parties had been composed by a Memorandum of Understanding dated 9th September 1997, and therefore the complaint and proceedings should be quashed.
The respondent No.1 appeared in person and filed written submissions, but the judgment does not detail his arguments.
Ratio Decidendi
The composition of the dispute between the parties through a Memorandum of Understanding is a valid ground for quashing criminal proceedings under Section 138 of the Negotiable Instruments Act, 1881, as it indicates that the parties have settled their differences and the continuation of proceedings would be an abuse of the process of the court.
Judgment Excerpts
This is a petition filed under Article 227 of the Constitution of India and section 482 of the Code of Criminal Procedure, 1973.
The petition arises out of a complaint filed by the Respondent No.1 against the Petitioner under the provisions of section 138 of the Negotiable Instruments Act, 1881.
A prayer is also made for quashing the proceedings of the complaint in view of the composition of the dispute between the Petitioners and the Respondent No.1 in terms of the Memorandum of Understanding dated 9th September 1997.
Procedural History
The petition was assigned to this court by order dated 27th June 2005 passed by the Hon'ble the Chief Justice. On 6th July 2005, by consent of the counsel, the petition was taken up for final hearing. After hearing the parties, the court reserved the judgment and dictated it on 8th September 2005.
Acts & Sections
- Negotiable Instruments Act, 1881: 138
- Code of Criminal Procedure, 1973: 482
- Constitution of India: Article 227
