Case Note & Summary
The applicant, Ajit Uday Salaskar, was convicted under Section 138 of the Negotiable Instruments Act, 1881 by the Judicial Magistrate First Class, Ponda, Goa, and the sentence was confirmed by the Additional Sessions Judge, North Goa. He filed a Criminal Revision Application before the High Court. During the pendency of the revision, the applicant paid the entire compensation amount to the respondent-society, which agreed to compounding. The applicant then filed an application under Section 147 of the NI Act seeking compounding of the offence. However, as per the Supreme Court's decision in Sanjabij Tari v. Kishore Borcar, compounding of an offence under Section 138 requires payment of costs to the State Legal Services Authority. The applicant, suffering from end-stage renal disease and other complications, with huge medical expenses and being the sole breadwinner of his family, sought waiver of these costs due to extreme financial distress. The High Court, after hearing the parties, considered the applicant's medical condition and financial inability. The court noted that the applicant had already paid the full compensation to the complainant, who had no objection. The court held that in exceptional circumstances, the requirement to pay compounding costs can be waived. Accordingly, the court allowed the compounding application and waived the costs payable to the Goa State Legal Services Authority. The court also directed that the criminal revision application be disposed of as compounded.
Headnote
A) Negotiable Instruments Act - Compounding of Offence - Section 147 - Waiver of Compounding Costs - The applicant sought compounding of offence under Section 138 NI Act after paying full compensation to the complainant. The court considered whether the compounding costs payable to the Legal Services Authority could be waived due to the applicant's end-stage renal disease and financial hardship. Held that the court has discretion to waive costs in exceptional circumstances, and considering the applicant's medical condition and inability to pay, the costs were waived. (Paras 1-13)
Issue of Consideration
Whether the compounding costs directed to be paid to the Goa State Legal Services Authority can be waived or relaxed in view of the applicant's extreme financial distress and life-threatening medical condition.
Final Decision
The court allowed the Criminal Miscellaneous Application and waived the compounding costs payable to the Goa State Legal Services Authority. The compounding of the offence under Section 138 NI Act was permitted, and the Criminal Revision Application was disposed of as compounded.
Law Points
- Compounding of offence under Section 138 NI Act
- Waiver of compounding costs
- Extreme financial distress
- Medical condition as ground for waiver
- Section 147 NI Act
Case Details
CRMA NO.29 of 2026 in Criminal Revision Application No.1054 of 2025 (F)
Ms. Vaibhavi Kanekar for Applicant, Mr. G. Nagvenkar, Additional Public Prosecutor for State, Mr. Jatin Ramaiya for Respondent No.1
The VPK Urban Co-op. Credit Society Ltd. and State of Goa
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Nature of Litigation
Criminal Miscellaneous Application under Section 147 of the Negotiable Instruments Act seeking compounding of offence under Section 138 and waiver of compounding costs.
Remedy Sought
The applicant sought compounding of the offence under Section 138 NI Act and waiver of the compounding costs payable to the Goa State Legal Services Authority.
Filing Reason
The applicant was convicted under Section 138 NI Act and the sentence was confirmed in appeal. He paid the full compensation to the complainant and sought compounding, but could not pay the additional costs due to extreme financial distress and medical condition.
Previous Decisions
The applicant was convicted by the J.M.F.C., Ponda, Goa, and the conviction was confirmed by the Additional Sessions Judge, North Goa.
Issues
Whether the compounding costs directed to be paid to the Goa State Legal Services Authority can be waived or relaxed in view of the applicant's extreme financial distress and life-threatening medical condition.
Submissions/Arguments
Applicant submitted that he has paid the entire compensation amount to the respondent-society and the society has no objection to compounding. He is suffering from end-stage renal disease and other complications, has incurred huge medical expenses, and is the sole breadwinner for his family. He is unable to pay the compounding costs.
Respondent No.1 society supported the compounding and had no objection. The State submitted to the court's order.
Ratio Decidendi
The court has discretion under Section 147 of the Negotiable Instruments Act to waive compounding costs in exceptional circumstances, such as extreme financial distress and life-threatening medical condition of the applicant, especially when the full compensation has been paid to the complainant.
Judgment Excerpts
The Applicant has paid the entire compensation amount inclusive of the disputed cheque amount to the Respondent No.1 – Society.
The Applicant is recently diagnosed as a case of end stage renal disease with several medical complications due to which he has incurred huge expenditure.
Since the Applicant is not in a position to deposit the compounding costs due to extreme financial distress, he has prayed to relax/exempt/waive off the compounding costs.
Procedural History
The applicant was convicted by the J.M.F.C., Ponda, Goa under Section 138 NI Act. The conviction was confirmed by the Additional Sessions Judge, North Goa. The applicant filed Criminal Revision Application No.1054 of 2025 (F) before the High Court. During the revision, the applicant paid the compensation and filed an application for compounding under Section 147 NI Act. The present application (CRMA No.29 of 2026) was filed seeking waiver of compounding costs.
Acts & Sections
- Negotiable Instruments Act, 1881: 138, 147
