Himachal Pradesh High Court
________________________________________________ vs Suresh Kumar on 12 September, 2023
Author: Sushil Kukreja
Bench: Sushil Kukreja
1
IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
Criminal Revision No. 218 of 2023
.
Decided on: 12.09.2023
________________________________________________
Ram Lal ....Petitioner.
Versus
Suresh Kumar
...Respondent.
of
Coram
The Hon'ble Mr. Justice Sushil Kukreja, Judge.
Whether approved for reporting?1
For the petitioner: rt Mr. H.S. Rangra, Advocate.
For the respondent: Mr. Vedant Ranta, Advocate.
________________________________________________
Sushil Kukreja, Judge (oral)
The instant petition has been filed by the petitioner-accused under Section 397/401 of the Code of Criminal Procedure (for short 'Cr.P.C.') against the judgment dated 03.01.2023, passed by the learned Sessions Judge Mandi, District Mandi, H.P., in criminal Appeal No. 39 of 2022, whereby the judgment of conviction, dated 28.06.2022, and order of sentence, dated 05.07.2022, passed by the learned Chief Judicial Magistrate, Mandi, District Mandi, H.P., CIS CNR No. HPMA02-002823-2017, convicting the accused-petitioner, was affirmed.
1Whether reporters of Local Papers may be allowed to see the judgment?
::: Downloaded on - 13/09/2023 20:34:16 :::CIS 22. The brief facts, giving rise to the present petition, can succinctly be summarized as under:
.
3. The accused-Ram Lal, being known to the complainant-Suresh Kumar, borrowed Rs.3,00,000/- from the him and in order to liquidate his financial liability, he issued cheque bearing No. 283917, dated 21.08.2017, amounting to of Rs.3,00,000/-. However, the aforesaid cheque, on being presented for encashment, was dishonored by the banker of rt the accused with remarks "funds insufficient and drawer's signatures differ". Thereafter, on 15.11.2017, the complainant issued a legal notice to the accused demanding his money, but the accused failed to make the payment.
Subsequently, the complainant filed a complaint under Section 138 of the Negotiable Instruments Act (hereinafter, for the sake of brevity, referred to as the "NI Act") before the learned Trial Court.
4. The learned Trial Court after conclusion of the trial convicted the accused under Section 138 of the NI Act and sentenced him to undergo simple imprisonment for six months and to pay a sum of Rs.3,50,000/- as compensation to the complainant.
::: Downloaded on - 13/09/2023 20:34:16 :::CIS 35. Being dissatisfied, the accused/petitioner/convict preferred an appeal before the learned Lower Appellate .
Court, which was dismissed and the judgment of the learned Trial Court was upheld.
6. Subsequently, the accused-petitioner, maintained the instant petition with a prayer to quash and set-aside the of impugned judgments and order of sentence and to acquit him for the offence alleged against him.
7. rt During the pendnecy of the instant petition, an application (Cr.MP No. 3093 of 2023) under Section 147 of the NI Act has been filed by the petitioner-accused seeking permission of this Court to compound the offence by setting-
aside judgment of conviction and order of sentence passed by the learned Trial Court, which was affirmed by the learned Lower Appellate Court.
8. Today, complainant-Suresh Kumar as well as the petitioner-Ram Lal are present in person before this Court and the statement of complainant, who is duly represented and identified by Mr. Vedant Ranta, Advocate, is separately recorded and placed on the file.
::: Downloaded on - 13/09/2023 20:34:16 :::CIS 49. In his statement, complainant-Suresh Kumar stated that on the basis of his complaint under Section 138 of .
the NI Act, bearing Criminal Complaint No. 708-III/2017, titled as Suresh Kumar vs. Ram Lal, the learned Chief Judicial Magistrate mandi, District Mandi, H.P., convicted the petitioner-accused, vide judgment of conviction dated of 28.06.2022 and order of sentence dated 05.07.2022 and was sentenced to undergo simple imprisonment for a period of six rt months and to pay compensation of Rs.3,50,000/-, which was affirmed by the learned Sessions Judge Mandi, District Mandi, H.P., vide judgment dated 03.01.2023. He has further stated that now during the pendency of the instant petition, the matter has been settled between the parties outside the Court. He has also stated that he has no objection in case judgment of conviction dated 28.06.2022 and order of sentence dated 05.07.2022, passed by the learned Chief Judicial Magistrate, Mandi, Distict Mandi, H.P., which was affirmed by the learned Sessions Judge, Mandi, District Mandi, H.P., vide judgment dated 03.01.2023, are quashed and set-aside and the petitioner-accused is acquitted of the charge under Section 138 of the NI Act.
::: Downloaded on - 13/09/2023 20:34:16 :::CIS 510. I have heard the learned Counsel for the petitioner-accused, learned counsel for the respondent the .
respondent/complainant and examined the entire records.
11. Having taken note of the fact that during the pendency of the instant petition, the matter has been settled between the parties outside the Court and the complainant of has no objection in compounding the offence, therefore, this Court sees no impediment in accepting the prayer made on rt behalf of the accused-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 the Hon'ble Apex Court has held as under:-
"10. At present, we are of course concerned with Section 147 of the Act, which reads as follows:-
"147. Offences to be compoundable- Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), every offence punishable under this Act shall be compoundable."
At this point, it would be apt to clarify that in view of the non-obstante clause, the compounding of offences under the Negotiable Instruments Act, 1881 is controlled by Section 147 and the scheme contemplated by Section 320 of the Code of Criminal Procedure (hereinafter "CrPC") will not be applicable in the strict sense since the latter is meant for the specified offences under the Indian Penal Code, 1860.
::: Downloaded on - 13/09/2023 20:34:16 :::CIS 611. So far as the CrPC is concerned, Section 320 deals with offences which are compoundable, either by the parties without the leave of the court or by the parties but only with the leave of the .
Court. Sub-section (1) of Section 320 enumerates the offences which 9 are compoundable without the leave of the Court, while subsection (2) of the said section specifies the offences which are compoundable with the leave of the Court.
12. Section 147 of the Negotiable Instruments Act, 1881 is in the nature of an enabling provision of which provides for the compounding of offences prescribed under the same Act, thereby serving as an exception to the general rule incorporated in sub-section (9) of Section 320 of the CrPC which rt states that 'No offence shall be compounded except as provided by this Section'. A bare reading of this provision would lead us to the inference that offences punishable under laws other than the Indian Penal Code also cannot be compounded. However, since Section 147 was inserted by way of an amendment to a special law, the same will override the effect of Section 320(9) of the CrPC, especially keeping in mind that Section 147 carries a non obstante clause."
12. In K. Subramanian Vs. R. Rajathi; (2010) 15 Supreme Court Cases 352, it has been held by the Hon'ble Apex Court that in view of the provisions contained in Section 147 of the Act read with Section 320 of Cr.P.C., compromise arrived at can be accepted even after recording of the judgment of conviction. The relevant portion of the judgment is reproduced as under:-
"6. Thereafter a compromise was entered into and the petitioner claims that he has paid Rs. 4,52,289 to the respondent. In support of this claim, the petitioner ::: Downloaded on - 13/09/2023 20:34:16 :::CIS 7 has produced an affidavit sworn by him on 1.12.2008. The petitioner has also produced an affidavit sworn by P. Kaliappan, Power of attorney holder of R. Rajathi on 1.12.2008 mentioning that he has received a sum of Rs. 4,52,289 due under the dishonoured cheques in full .
discharge of the value of cheques and he is not willing to prosecute the petitioner.
7. The learned counsel for the petitioner states at the Bar that the petitioner was arrested on 30.7.2008 and has undergone the sentence imposed on him by the trial Court and confirmed by the Sessions Court, the High Court as well as by this Court. The two affidavits sought to be produced by the petitioner as additional of documents would indicate that indeed a compromise has taken place between the petitioner and the respondent and the respondent has accepted the compromise offered by the petitioner pursuant to which rt he has received a sum of Rs.4,52,289. In the affidavit filed by the respondent a prayer is made to permit the petitioner to compound the offence and close the proceedings.
8. Having regard to the salutary provisions of Section 147 of the Negotiable Instruments Act read with Section 320 of the Code of Criminal Procedure, this Court is of the opinion that in view of the compromise arrived at between the parties, the petitioner should be permitted to compound the offence committed by him under Section 138 of the Code."
13. Since, in the instant case, the petitioner-accused after being convicted under Section 138 of the Act, has settled the matter with the respondent-complainant outside the Court, prayer for compounding the offence can be accepted in terms of the aforesaid judgments passed by the Hon'ble Apex Court.
14. Therefore, in view of the detailed discussion made hereinabove as well as law laid down by the Hon'ble ::: Downloaded on - 13/09/2023 20:34:16 :::CIS 8 Apex Court, the parties are permitted to get the matter compounded in light of the compromise arrived inter se .
them.
15. Accordingly, the present matter is ordered to be compounded and the impugned judgment of conviction, dated 28.06.2022 and order of sentence, dated 05.07.2022, of passed by the learned Chief Judicial Magistrate Mandi, District Mandi, H.P., in CIS CNR No. HPMA02-002823-2017, rt and affirmed by learned Sessions Judge, Mandi, District Mandi, H.P., in Criminal Appeal No. 39 of 2022, vide judgment dated 03.01.2023, are quashed and set-aside and the petitioner-accused is acquitted of the charge framed against him under Section 138 of the Act.
16. In view of the submission of learned counsel for the resrespondent-complainant, an amount of Rs.1,05,000/-, which had been deposited by the petitioner-accused, before the learned Sessions Judge Mandi, District Mandi, H.P., is ordered to be released in favour of the respondent-
complainant, after due verfication.
::: Downloaded on - 13/09/2023 20:34:16 :::CIS 917. Undisputedly, the cheque amount is of Rs.3,00,000/- however, the learned counsel for the petitioner .
submitted that the petitioner is a poor person and the imposition of compounding fee may be reduced.
18. In case K. Subramanian vs. R. Rajathi (supra), the Hon'ble Apex Court had issued the guidelines with of respect to the imposition of compounding fee, which read as under:-
rt "THE GUIDELINES
(i) In the circumstances, it is proposed as follows:
(a) That directions can be given that the writ of summons be suitably modified making it clear to the accused that he could make an application for compounding of the offences at the first or second hearing of the case and that if such an application is made, compounding may be allowed by the Court without imposing any costs on the accused.
(b) If the accused does not make an application for compounding as aforesaid, then if an application for compounding is made before the Magistrate at a subsequent stage, compounding can be allowed subject to the condition that the accused will be required to pay 10% of the cheque amount to be deposited as a condition for compounding with the Legal Services Authority, or such authority as the Curt deems fit.
(c) Similarly, if the application for compounding is made before the Sessions Court or a High Court in revision or appeal, such compounding may be allowed on the condition that the accused pays 15% of the cheque amount by way of costs.
(d) Finally, if the application for compounding is made before the Supreme Court, the figure would increase to 20% of the cheque amount.
... ... ... ... ... ... ...
25. The graded scheme for imposing costs is a means to encourage compounding at an early ::: Downloaded on - 13/09/2023 20:34:16 :::CIS 10 stage of litigation. In the status quo, valuable time of the court is spent on the trial of these cases and the parties are not liable to pay any court fee since the proceedings are governed by the Code of Criminal Procedure, even though the .
impact of the offence is largely confined to the private parties. Even though the imposition of costs by the competent court is a matter of discretion, the scale of costs has been suggested in the interest of uniformity. The competent court can of course reduce the costs with regard to the specific facts and circumstances of a case, while recording reasons in writing for such variance. Bona fide litigants should of course contest the of proceedings to their logical end."
19. Therefore, taking into consideration the law laid rt down by the Hon'ble Apex Court (supra) and the financial condition of the petitioner, as he is a poor person, since the competent Courts can reduce the compounding fee with regard to the specific facts and circumstances of the case, the petitioner is directed to deposit token compounding fee of Rs.15,000 (rupees fifteen thousand), i.e., 5% of the cheque amount, only with the District Legal Services Authority Mandi, District Mandi, H.P., within four weeks from today.
20. The petition stands disposed of accordingly, so also the pending miscellaneous application(s), if any.
( Sushil Kukreja ) th 12 September, 2023 Judge (virender) ::: Downloaded on - 13/09/2023 20:34:16 :::CIS