Hira Lal Kaushal vs Mohan Lal

Sandeep Sharma, J.

Instant criminal revision petition, lays challenge to judgment dated 20.3.2023, passed by the learned Sessions Judge, Mandi, Himachal Pradesh, in Criminal Appeal No. 42/2021/2019, affirming judgment of conviction and order of sentence dated 1/18.12.2018, passed by the learned Chief Judicial Magistrate, Mandi, District Mandi, H.P., in NI Act No. 8-III/17, whereby the learned trial Court while holding the petitioner-accused guilty of having committed offence punishable under Section 138 of the Negotiable Instruments Act (in short the “Act"), convicted and sentenced him to undergo simple imprisonment for a period of three months and pay compensation to the tune of Rs. 67,800/- to the complainant.

Precisely, the facts of the case, as emerge from the record are that respondent-complainant instituted a complaint under Section 138 of the Act, in the court of competent court of law, alleging therein that accused with a view to discharge his liability issued cheque amounting to Rs. 57,800/- but fact remains that aforesaid cheque on its presentation, was dishonoured. Since petitioner-accused failed to make the payment good within the time stipulated in the legal notice, respondent/complainant was compelled to initiate proceedings before the competent Court of law under Section 138 of the Act.

Learned trial Court on the basis of material adduced on record by the respective parties, vide judgment/order dated 1/18.12.2018, held the petitioner -accused guilty of having committed offence under Section 138 of the Act and accordingly, convicted and sentenced him as per the description given herein above.

Being aggrieved and dissatisfied with the aforesaid judgment of conviction recorded by the court below, accused preferred an appeal in the court of learned Sessions Judge, Mandi, which also came to be dismissed vide judgment dated 20.3.2023, as a consequence of which, judgment of conviction recorded by the learned trial Court came to be upheld. In the aforesaid background, present petitioner-accused has approached this Court by way of instant proceedings, seeking therein his acquittal after setting aside the judgments of conviction recorded by the courts below.

Before case at hand could be heard and decided on its own merits, learned counsel for the petitioner stated that during the pendency of the petition, parties have compromised the matter with each other and as such, has filed an application bearing CrMP No. 1497 of 2024, under Section 147 of the Negotiable Instruments Act, praying therein to compound the offence alleged to have been committed by the petitioner under Section 138 of the Act.

While fairly acknowledging factum with regard to compromise, learned counsel appearing for the respondent-complainant stated that his client shall have no objection in compounding the offence subject to release of the amount lying deposited in the trial court in his favour. Learned counsel further submitted that since respondent-complainant was unnecessarily dragged into litigation for realization of his own money, this Court may also award some litigation cost.

Having taken note of the fact that entire amount of compensation stands paid or agreed to be paid to the respondent-complainant and respondent has no objection in compounding the offence, this Court sees no impediment in accepting the prayer made on behalf of the petitioner for compounding of offence while exercising power under Section 147 of the Act as well as in terms of guidelines issued by the Hon’ble Apex Court in Damodar S. Prabhu V. Sayed Babalal H. (2010) 5 SCC 663, wherein it has been categorically held that court, while exercising power under Section 147 of the Act, can proceed to compound the offence even after recording of conviction by the courts below.

Consequently, in view of the above, present matter is ordered to be compounded and impugned judgments of conviction and sentence dated 1/18.12.2018 and 20.3.2023, passed by the courts below are quashed and set-aside and the petitioner-accused is acquitted of the charge framed against him under Section 138 of the Act. Interim order, if any, is vacated. Bail bonds, if any, discharged. Since respondent-complainant was unnecessarily compelled to institute the legal proceedings against the accused that too for realization of his own money, this court deems it fit to direct the accused to pay sum of Rs. 10,000/- to the respondent-Complainant as litigation cost, payable within six weeks. Ordered accordingly. It is made clear that in case, aforesaid amount of Rs. 10,000/-is not paid within the time stipulated by this court, accused besides rendering himself liable for penal consequences would also invite contempt proceedings. Learned trial court is also directed to release the amount, if any, deposited by the accused, on filing appropriate application detailing therein saving bank account details of the complainant. The petition is disposed of alongwith pending applications, if any.