Case Note & Summary
The applicant, Bhupendrabhai Hirjibhai Patel, was convicted by the learned Additional Chief Judicial Magistrate, Gondal in Criminal Case No.1329 of 2011 for the offence under Section 138 of the Negotiable Instruments Act, 1881 (NI Act) and sentenced to simple imprisonment for one year and to pay compensation of Rs.2,00,000/- (double the cheque amount of Rs.1,00,000/-), with default simple imprisonment of four months. The conviction was upheld by the learned 6th Additional Sessions Judge, Gondal in Criminal Appeal No.19 of 2019 vide order dated 19.09.2020. The applicant then filed the present revision application under Sections 397 read with 401 of the Code of Criminal Procedure, 1973. During the revision proceedings, the applicant's counsel submitted that the applicant had already deposited the entire compensation amount of Rs.2,00,000/- before the trial court in installments: Rs.60,000/- on 14.10.2020, Rs.40,000/- before filing the appeal, and Rs.1,00,000/- on 07.11.2020. The court noted that the offence under Section 138 NI Act is quasi-criminal and compoundable, and since the entire amount had been deposited, the offence stood compounded. The court held that the sentence of imprisonment could be reduced to the period already undergone. Accordingly, the court dismissed the revision application challenging conviction but modified the sentence to the period already undergone, while confirming the compensation order. The court directed that if the compensation amount had not been disbursed to the complainant, it should be disbursed after due verification.
Headnote
A) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Compounding - The accused deposited the entire cheque amount of Rs.1,00,000/- and additional compensation of Rs.1,00,000/- before the trial court, totaling Rs.2,00,000/-. The court held that since the amount has been deposited, the offence is compounded and the sentence can be modified to the period already undergone. (Paras 1-3) B) Criminal Procedure Code - Revision - Section 397 read with 401 - The High Court in revision can modify the sentence in view of subsequent events like deposit of compensation. The court reduced the sentence of one year simple imprisonment to the period already undergone (about 5 years and 11 months) as the accused had already deposited the compensation amount. (Paras 1-3)
Issue of Consideration
Whether the conviction and sentence under Section 138 of the Negotiable Instruments Act, 1881 should be upheld or modified in light of the deposit of the cheque amount by the accused.
Final Decision
The revision application is dismissed. The conviction under Section 138 of the Negotiable Instruments Act, 1881 is confirmed. However, the sentence of simple imprisonment for one year is modified to the period already undergone. The order of compensation of Rs.2,00,000/- is confirmed. If the compensation amount has not been disbursed to the complainant, the trial court shall disburse the same after due verification.
Law Points
- Compounding of offence under Section 138 NI Act is permissible even at revision stage
- deposit of cheque amount amounts to compounding
- sentence can be reduced to period already undergone if compensation is paid
