Amit Sharma vs Charanjit Singh
2024 Latest Caselaw 10791 P&H

Punjab-Haryana High Court

Amit Sharma vs Charanjit Singh on 4 July, 2024

Author: Anoop Chitkara

Bench: Anoop Chitkara

                                                 Neutral Citation No:=2024:PHHC:084863
CRR-3461-2018 (O&M)                                 --1--


                           IN THE HIGH COURT OF PUNJAB & HARYANA
                                        AT CHANDIGARH

113+265                                                     CRR-3461-2018 (O&M)
                                                            Date of Decision: 04.07.2024

Amit Sharma                                                    ......Petitioner

                                      Vs.

Charanjit Singh                                               ......Respondent


CORAM:          HON'BLE MR. JUSTICE ANOOP CHITKARA

Present:        Mr. S.K. Choudhary, Advocate
                for the applicant/petitioner.

                Mr. S.K. Arya, Advocate
                for the respondent.

                                ***

ANOOP CHITKARA J.

Criminal Complaint         626 of 2016 u/s 138 of Negotiable Instruments Act
before the trial court     Date of decision: 01.03.2018
Criminal Appeal before     No. 31 dated 31.03.2018.
the Sessions Court,        CIS No.54 of 2018
Amritsar                   CNR No. PBPO010008142018
                           Date of decision: 06.09.2018



Convict's name              Penal provision      Sentence

Amit Sharma                 138 NI Act           RI for 01 year and to a fine of Rs.1,000/-

1. The petitioner, who stands convicted for the commission of offence punishable under Section 138 of the Negotiable Instruments Act, 1881, (NIA) after dismissal of appeal has come up before this Court under Section 401, Code of Criminal Procedure, (CrPC) for setting aside the judgment of conviction and order of sentence dated 01.03.2018 passed by the learned ACJM, Pathankot and affirmed the judgment by the learned Sessions Judge, Pathankot, vide judgment dated 06.09.2018.

2. After the judgment of the Appellate Court, during the pendency of present petition, the parties compromised the matter.

3. Vide order dated 14.01.2019, the parties were directed to appear before the con- cerned Court to record their respective statements qua the compromise. On 05.02.2019, the aggrieved person-Charanjit Singh appeared before the learned CJM, Pathankot and stated

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Neutral Citation No:=2024:PHHC:084863 CRR-3461-2018 (O&M) --2--

that he has compromised the matter with the accused-Amit Sharma, and he has received the entire money from the petitioner. As per the concerned court's report dated 07.02.2019, the parties had compromised the matter without any undue pressure, threat or coercion.

4. The jurisprudence behind the Negotiable Instruments Act, 1881 is that the business transactions are to be honoured. The legislative intention is not to make people suffer incarceration only because their cheques bounced. These proceedings are to recover the cheque amount by showing teeth of a penal clause.

5. Given the judgment passed by Hon'ble Supreme Court of India in Damodar S. Prabhu v Sayed Babalal, (2010) 5 SCC 663, the law is well settled that when the entire money is paid, then the complainant cannot have any objection to set aside the judgment of conviction after dismissal of appeal in that case 15% of the cheque amount is to be paid by the accused to the concerned State Legal Services Authority.

6. Given above, because of the compromise, this is a fit case where this Court can disrupt the prosecution and set aside the judgment of conviction and order of sentence by invoking the provision of Section 147 of NI Act read with 401 CrPC and can compound the offence.

7. In Damodar S. Prabhu v Sayed Babalal, (2010) 5 SCC 663, Hon'ble Supreme Court holds, [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."

8. The cheque amount is Rs.11,00,000/- and compounding is subject to the petitioner depositing the 15% of the cheque amount i.e. Rs.1,65,000/-. On the last day, the petitioner was asked to show his financial incapacity to deposit 15% of cheque amount. In response to that, the petitioner filed CRM-26220-2024 with affidavit declaring his acute financial incapacity to deposit 15% of the cheque amount as loan of more than Rs. 32 lakhs and home loan of Rs. 10 lakhs is outstanding. Further, petitioner's mother is aged 70 years suffering from mental issues, his two minor children, are at crucial stage of their studies, one in 10+1 and other in 9th standard and his business suffered very badly due to Covid-19.

9. Given above, the petition is allowed. Judgment and order of sentence dated 01.03.2018 passed by the learned ACJM, Pathankot and judgment dated 06.09.2018 passed by the learned Sessions Judge, Pathankot and all consequential proceedings are hereby set aside. The bail bonds are accordingly discharged. All pending applications, if any, stand closed.

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                                           Neutral Citation No:=2024:PHHC:084863
CRR-3461-2018 (O&M)                          --3--

Amount of fine deposited stands forfeited to the State.

10. Given the declaration given by the petitioner, it is a fit case for granting exemption from deposit of 15% of the cheque amount in view of ratio of Damodar S. Prabhu (supra). It is clarified that this exemption is granted due to peculiar facts of this case and financial condition of petitioner and shall not be a precedent for other cases.

                                                                     (ANOOP CHITKARA)
04.07.2024                                                               JUDGE
Jyoti-II

               Whether speaking/reasoned:            Yes
               Whether reportable:                   No.




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