Case Note & Summary
The petitioner, Ms. Shally M. Peter, filed a criminal petition under Section 482 of the Code of Criminal Procedure, 1973, seeking to quash the order dated 25-2-2020 passed by the XXXIV Additional Chief Metropolitan Magistrate, Bengaluru, in C.C. No.57252 of 2018. The petitioner had filed a complaint against the respondent, M/s. Banyan Projects India Pvt. Ltd., for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881, regarding dishonour of a cheque. After the respondent entered appearance, the parties filed a joint compromise memo agreeing to settle the dispute for Rs.33,00,000/- payable in installments: Rs.2,00,000/- on 19-02-2019 via cheque, Rs.2,00,000/- on 19-03-2019 via cheque, and the balance in subsequent installments. The petitioner had already received Rs.6,00,000/- from the respondent. However, the Magistrate passed an order directing the petitioner to deposit Rs.6,00,000/- as a condition for compounding the offence. The petitioner challenged this condition. The High Court heard both sides and held that the condition to deposit the amount was not warranted as the compromise was already recorded and the petitioner was entitled to withdraw the amount deposited. The court quashed the impugned order and permitted the petitioner to withdraw the Rs.6,00,000/- deposited. The petition was allowed.
Headnote
A) Criminal Procedure - Quashing of Order - Section 482 Cr.P.C. - Compromise in Section 138 NI Act Case - The petitioner-complainant sought quashing of the Magistrate's order directing deposit of Rs.6,00,000/- as a condition for compounding the offence under Section 138 of the Negotiable Instruments Act, 1881. The parties had entered into a compromise for Rs.33,00,000/- payable in installments. The High Court held that the condition to deposit the amount was not warranted as the compromise was already recorded and the petitioner was entitled to withdraw the amount deposited. The order was quashed and the petitioner was permitted to withdraw the deposited amount. (Paras 1-5)
Issue of Consideration
Whether the order dated 25-2-2020 passed by the Magistrate directing the petitioner to deposit Rs.6,00,000/- as a condition for compounding the offence under Section 138 of the Negotiable Instruments Act, 1881, should be quashed.
Final Decision
The petition is allowed. The order dated 25-2-2020 passed by the XXXIV Additional Chief Metropolitan Magistrate, Bengaluru, in C.C. No.57252 of 2018 is quashed. The petitioner is permitted to withdraw the amount of Rs.6,00,000/- deposited before the trial court.
Law Points
- Compromise in cheque dishonour case
- Withdrawal of deposited amount
- Section 138 Negotiable Instruments Act
- 1881
- Section 482 Cr.P.C.
Case Details
2021 LawText (KAR) (09) 35
Criminal Petition No.3157 of 2020
Smt. Shahida Khanam J., Sri Maskoor Hashmi Md. (for petitioner), Sri S.R. Sreeprasad (for respondent)
M/s. Banyan Projects India Pvt. Ltd.
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Nature of Litigation
Criminal petition under Section 482 Cr.P.C. for quashing order in a cheque dishonour case under Section 138 of the Negotiable Instruments Act, 1881.
Remedy Sought
Quashing of the order dated 25-2-2020 passed by the XXXIV Additional Chief Metropolitan Magistrate, Bengaluru, in C.C. No.57252 of 2018, directing the petitioner to deposit Rs.6,00,000/- as a condition for compounding the offence.
Filing Reason
The petitioner-complainant challenged the condition imposed by the Magistrate to deposit Rs.6,00,000/- despite the parties having entered into a compromise for Rs.33,00,000/- payable in installments.
Previous Decisions
The Magistrate passed the order dated 25-2-2020 in C.C. No.57252 of 2018 directing the petitioner to deposit Rs.6,00,000/-.
Issues
Whether the condition to deposit Rs.6,00,000/- imposed by the Magistrate was justified when the parties had already compromised the matter.
Submissions/Arguments
The petitioner argued that the condition to deposit the amount was unwarranted as the compromise was already recorded and the petitioner had already received Rs.6,00,000/- from the respondent.
The respondent supported the compromise and did not oppose the quashing of the order.
Ratio Decidendi
When parties have entered into a compromise and the complainant has already received part of the settlement amount, imposing a condition to deposit the same amount is not warranted. The court should permit withdrawal of the deposited amount.
Judgment Excerpts
This petition is filed by the petitioner-complainant under Section 482 of the Code of Criminal Procedure, 1973 for quashing the order dated 25-2-2020 passed by the XXXIV Additional Chief Metropolitan Magistrate, Bengaluru, in C.C. No.57252 of 2018.
The case of the petitioner is that, he filed a case against the respondent-accused for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881.
After entering the appearance, the petitioner and the respondent have filed joint memo for compromise for settling the dispute for Rs.33.00 lakh on terms...
Procedural History
The petitioner filed a complaint under Section 138 of the Negotiable Instruments Act, 1881, which was registered as C.C. No.57252 of 2018 before the XXXIV Additional Chief Metropolitan Magistrate, Bengaluru. The parties filed a joint compromise memo. The Magistrate passed an order on 25-2-2020 directing the petitioner to deposit Rs.6,00,000/- as a condition for compounding. The petitioner challenged this order by filing Criminal Petition No.3157 of 2020 under Section 482 Cr.P.C. before the High Court of Karnataka.
Acts & Sections
- Code of Criminal Procedure, 1973: Section 482
- Negotiable Instruments Act, 1881: Section 138
