Punjab-Haryana High Court
Narbir Singh vs Hdfc Bank Limited on 30 April, 2024
Neutral Citation No:=2024:PHHC:059451
CRR-1564-2023 (O&M) --1--
2024:PHHC:059451
244 IN THE HIGH COURT OF PUNJAB AND HARYANA AT
CHANDIGARH
CRR-1564-2023 (O&M)
DATE OF DECISION:-30.04.2024
Narbir Singh ...Petitioner.
vs.
HDFC Bank Ltd. ...Respondent..
CORAM: HON'BLE MR. JUSTICE HARKESH MANUJA
Present: Mr. Kamal Narula, Advocate for the petitioner.
Mr. Saurabh Bhardwaj, Advocate,
for the respondent.
***
HARKESH MANUJA, J. (Oral)
1. Challenge in the present revision petition is to the judgment dated
09.02.2023 passed by learned Judge, Special Court-cum-Additional District
& Sessions Judge-cum-Fast Track Court, Ferozepur, whereby the appeal
filed against the judgment of conviction and order of sentence dated
07.08.2019 passed by learned Judicial Magistrate Ist Class, Ferozepur, was
dismissed, upholding the same.
2. The facts of the case are that on account of dishonour of cheque
bearing No.000003 dated 30.06.2017, amounting to Rs.10,00,000/-, a
complaint under Section 138 of the Negotiable Instruments Act, 1881
(hereinafter referred to "NI Act") came to be filed at the instance of
respondent-Bank against the petitioner, resulting into conviction besides
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awarding sentence of rigorous imprisonment for a period of 01 year and to
pay compensation to the tune of Rs.10,00,000/- (cheque amount) and in
default of payment, to further undergo simple imprisonment for six months,
vide order dated 07.08.2019.
3. Aggrieved thereof, the petitioner filed first appeal before the
Judge, Special Court-cum-Additional District & Sessions Judge-cum-Fast
Track Court, Ferozepur, which was dismissed vide judgment dated
09.02.2023, thereby, upholding the judgment passed by the trial court.
4. While assailing the aforesaid judgments passed by both the Courts
below, learned counsel for the petitioner submits that during the pendency
of present revision petition, better sense has prevailed and the petitioner has
discharged his liability towards respondent-Bank as the entire payment
stands made and the respondent-Bank has already issued a "No Dues
Certificate" dated 21.03.2022 (Annexure P-1).
5. In response, learned counsel for the respondent-complainant has
filed reply by way of short affidavit on behalf of respondent-HDFC Bank
Ltd. through Pulkit Khanna, Assistant Manager (Agri. Legal), HDFC Bank
Ltd. Regional Office, Mohali, District Mohali in Court today and same is
taken on record, wherein, it has been mentioned that all the claims between
both the parties have been settled and the loan account of the petitioner has
been closed and the respondent-Bank does not want to pursue the case
against the petitioner besides it, the respondent-bank has no objection if the
offence against the petitioner be compounded.
6. I have heard learned counsel for the parties and gone through the
paper-book.
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7. A conjoint reading of Section 138 read with Section 147 of the
1881 Act, makes it clear that every offence punishable under 1881 Act is
compoundable. Section 147 of the aforesaid Act is reproduced hereunder for
reference:-
"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."
7.1 Applying the aforesaid proposition to the facts and circumstances
of the present case, the petitioner having settled the dispute with the
complainant by making the entire payment, offences committed by the
petitioner under Section 138 of 1881 Act, thus, stand compounded.
7.2 Furthermore, following the law laid down by the Hon'ble
Supreme Court in case of "B.V. Seshaiah Vs. The State of Telangana &
Anr., 2023(1)R.C.R. (Criminal) 831" the compounding of offence has to be
followed by setting aside of conviction order passed by the Court below.
7.3 Reference may be made to Paragraph Nos. 10-13 thereof, which
are reproduced hereunder:-
10. "In the case of M/s Meters and Instruments
Private Limited & Anr. Vs. Kanchan Mehta, this Court
held that the nature of offence under Section 138 of the
N.I. Act is primarily related to a civil wrong and has
been specifically made a compoundable offence. The
relevant paragraph of the judgment has been extracted
herein:
'This Court has noted that the object of the
statute was to facilitate smooth functioning of business
transactions. The provision is necessary as in many
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transactions cheques were issued merely as a device to
defraud the creditors. Dishonour of cheque causes
incalculable loss, injury and inconvenience to the Vide
the Banking, Public Financial Institutions and
Negotiable
Instruments Laws (Amendment) Act, 1988 payee and
credibility of business transactions suffers a setback. At
the same time, it was also noted that nature of offence
under Section 138 primarily related to a civil wrong
and the 2002 amendment specifically made it
compoundable.'
11. This is a very clear case of the parties
entering into an agreement and compounding the
offence to save themselves from the process of
litigation. When such a step has been taken by the
parties, and the law very clearly allows them to do the
same, the High Court then cannot override such
compounding and impose its will.
12. It must also be noted that the respondent
No.2 was duty-bound to file a compromise petition
before the High Court, and by not doing the same has
withdrawn key information from the High Court, which
has led to an unwarranted confirmation of the
Appellants' conviction.
13. We, therefore, allow these Appeals and set
aside the order of conviction passed by the trial Court.
It is, however, kept open to the parties to settle their
dispute as per the terms of the Memorandum of
Understanding."
8. Moreover, learned counsel for the petitioner, on instructions from
his client, submits that he volunteers to serve public cause by providing the
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ECG Machine to Civil Hospital, Ferozepur.
9. In view of the discussion made hereinabove and to give a quietus
to the litigation, the present revision petition is accepted. Accordingly, the
judgments of conviction and orders of sentence passed by both the courts
below are hereby set aside, resulting in acquittal of the petitioner, however,
subject to providing one ECG Machine to the Civil Hospital, Ferozepur,
within a period of two weeks from today as volunteered by the petitioner
against due receipt issued by the concerned Civil Surgeon, who shall
prepare an inventory in this regard for its regular inspection by the Director
concerned. A copy of the receipt shall also be sent to the office of Advocate
General, Punjab at the earliest for maintaining records in this regard.
10. Pending application(s), if any stand(s) disposed of.
30.04.2024 (HARKESH MANUJA)
sonika JUDGE
whether speaking/reasoned: Yes/No
whether reportable: Yes/No
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