Madhya Pradesh High Court
Maniram Kasab (Gupta) vs Sheetal Prashad Batham Through Its ... on 10 March, 2025
Author: Milind Ramesh Phadke
Bench: Milind Ramesh Phadke
NEUTRAL CITATION NO. 2025:MPHC-GWL:5661
1 WP-8501-2025
IN THE HIGH COURT OF MADHYA PRADESH
AT GWALIOR
BEFORE
HON'BLE SHRI JUSTICE MILIND RAMESH PHADKE
ON THE 10th OF MARCH, 2025
WRIT PETITION No. 8501 of 2025
MANIRAM KASAB (GUPTA)
Versus
SHEETAL PRASHAD BATHAM THROUGH ITS LEGAL
REPRESENTATIVE (I) KISHORILAL AND OTHERS
Appearance:
Ms.Divyanshi Kushwah - Advocate for the petitioner.
Shri Deepak Khot - G.A. for the respondent/State.
ORDER
The petition under Article 226 of the Constitution has been preferred by the petitioner assailing the order dated 19.12.2024 passed by Judicial Magistrate First Class Dabra, District Gwalior (M.P.) in case No. SCNIA 50/2018 filed u/s 138 Negotiable Instruments Act, by the respondent herein (complainant before Ld. Trial Court), whereby a penalty of Rs.65,000/- had been imposed in light of the judgment of Apex Court rendered in the case of Damodar S. Prabhu v. Sayed Babalal H. reported in AIR 2010 SC 1907.
2. Before proceeding further, it would be relevant to mention that the complainant (respondent herein) filed a complaint u/s 138 N. I. Act against the petitioner with regard to dishonoring of a cheque for the amount of RS.6,50,000/- issued by the petitioner in favour of respondent. During pendency of the case, respondent Shri Sheetal Prasad died and with the permission of the Court, his legal representatives were brought on record.
Signature Not Verified Signed by: YOGENDRA OJHA Signing time: 11-03-2025 10:41:59 AMNEUTRAL CITATION NO. 2025:MPHC-GWL:5661 2 WP-8501-2025 On 18.12.2024, when the case was at the stage of final arguments, the present petitioner filed an application under Section 147 of Negotiable Instruments Act stating that he wants to pay Rs.6,50,000/- to the legal representatives of deceased Sheetal Prasad. The legal representative of the deceased appeared before the Court and stated that they had entered into a compromise and did not oppose the said application. Learned trial Court after satisfying that both the parties have voluntarily settled the present case, vide order dated 19.12.2024, in view of the settlement reached between the parties, compounded the offence u/s 138 NI Act, consequent to which the petitioner was acquitted for the offence u/s 138 NI Act, but at the same time, the Court ordered the present petitioner to deposit an amount of Rs.65,000/-
into the Tehsil Legal Services Authority Dabra District Gwalior as penalty of 10% on the amount of cheque.
3. Learned counsel for the petitioner submits that in the present case, the settlement was agreed between the parties and after paying the amount to the complaint, a joint application for compromise was filed by both the parties but learned court below vide order dated 19.12.2024 not only allowed the application for compromise but also imposed penalty of Rs.65,000/- upon the petitioner which is excessive, therefore, assailing the quantum of penalty, the present petition has been filed and it is prayed that the impugned order so far as it relates to imposition of penalty of Rs.65,000/- upon the petitioner be set-aside.
4. Per contra, learned counsel for the respondent/State submits that the imposition of costs by the competent court is a matter of discretion and in the Signature Not Verified Signed by: YOGENDRA OJHA Signing time: 11-03-2025 10:41:59 AM NEUTRAL CITATION NO. 2025:MPHC-GWL:5661 3 WP-8501-2025 light of the judgment rendered by Hon'ble Apex Court in case of Damodar S. Prabhu (supra), 10% of the cheque amount by way of costs has been directed to be paid to the petitioner. Thus, no illegality has been committed by learned trial Court imposing cost of 10% of the cheque amount. Hence, no interference is warranted.
5. Heard counsel for the parties and perused the record.
6. So far as the question of depositing the cost is concerned, the Hon'ble Supreme Court in case of Damodar S. Prabhu (supra) in Para 17 has held as under:-
"17. .........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 ......."
7. In the present case, complaint u/S. 138 N.I. Act was filed by the original complainant and during pendency of this case, he expired and later on, his legal representatives sought permission from the Court to prosecute the case on his behalf and thereafter the compromise was arrived at between the parties. Therefore, there was no occasion for the present petition to enter into a compromise at an earlier stage. Considering all these facts, the case of the present petitioner is required to be considered sympathetically. Hence, this Court is of the opinion, in the present case, discretion is required to be exercised in favour of the present petitioner and ends of justice will met if the petitioner may be directed to pay Rs.40,000/- instead Rs.65,000/- towards cost before Tehsil Legal Services Authority Dabra District Gwalior.
8. Consequently, the petitioner is directed to deposit Rs.40,000/-
Signature Not Verified Signed by: YOGENDRA OJHA Signing time: 11-03-2025 10:41:59 AMNEUTRAL CITATION NO. 2025:MPHC-GWL:5661 4 WP-8501-2025 instead Rs.65,000/- towards cost before Tehsil Legal Services Authority Dabra District Gwalior.
9. At this stage, learned counsel for the petitioner submits that the petitioner has already deposited Rs.65,000/- before Tehsil Legal Services Authority Dabra District Gwalior.
10. In such circumstances, it is directed that if the petitioner has already deposited Rs.65,000/- before Tehsil Legal Services Authority Dabra District Gwalior, then the remaining amount after deducting Rs. 40,000/- be refunded to him.
11. With the aforesaid direction, this petition stands disposed of.
(MILIND RAMESH PHADKE) JUDGE ojha Signature Not Verified Signed by: YOGENDRA OJHA Signing time: 11-03-2025 10:41:59 AM