Case Note & Summary
The applicant (accused) filed a Criminal Revision Application under Section 397 read with Section 401 of the Code of Criminal Procedure, 1973, challenging the judgment and order of conviction dated 03.03.2017 passed by the learned 2nd Additional Sessions Judge, Himmatnagar, in Criminal Appeal No.49 of 2014, which upheld the conviction and sentence dated 07.06.2014 passed by the learned 2nd Additional Chief Judicial Magistrate, Himmatnagar, in Criminal Case No.859 of 2011. The trial court had convicted the applicant for the offence under Section 138 of the Negotiable Instruments Act, 1881, and sentenced him to simple imprisonment of one year and directed payment of compensation of Rs.5,30,000/- to the complainant, with default sentence of three months. When the revision application was called out, the learned advocate for the applicant remained absent. The learned advocate for the respondent no.2 (complainant) appeared and submitted that the complainant had received the amount and the dispute was settled. The court noted that the applicant was not interested in proceeding with the matter. Considering the concurrent findings and the fact that the impugned amount had already been paid to the complainant, the court held that once the amount is deposited and the offence under Section 138 NI Act is compounded, the conviction and sentence can be set aside. The court allowed the revision application, quashed and set aside the judgments of the courts below, and acquitted the applicant of the offence under Section 138 NI Act. The court also directed that the amount deposited by the applicant, if any, be disbursed to the complainant.
Headnote
A) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Compounding of Offence - Settlement between parties - Where the complainant has received the entire cheque amount and the dispute is settled, the conviction and sentence under Section 138 NI Act can be set aside and the accused acquitted - Held that once the amount is paid and the offence is compounded, the revision application is allowed and the impugned judgments are quashed (Paras 2-4).
Issue of Consideration
Whether the conviction under Section 138 of the Negotiable Instruments Act, 1881 can be set aside when the parties have settled the dispute and the complainant has received the cheque amount.
Final Decision
The revision application is allowed. The judgment and order of conviction and sentence dated 03.03.2017 passed by the learned 2nd Additional Sessions Judge, Himmatnagar in Criminal Appeal No.49 of 2014, and the judgment and order dated 07.06.2014 passed by the learned 2nd Additional Chief Judicial Magistrate, Himmatnagar in Criminal Case No.859 of 2011 are quashed and set aside. The applicant is acquitted of the offence under Section 138 of the Negotiable Instruments Act, 1881. The amount deposited by the applicant, if any, shall be disbursed to the complainant.
Law Points
- Compounding of offence under Section 138 NI Act
- Settlement between parties
- Acquittal upon payment of cheque amount
