In a landmark judgment, the Nagpur Bench of Bombay High Court allows compounding of offences under Section 138 of the Negotiable Instruments Act post-conviction, emphasizing the legislative intent for mutual settlement.
In a significant ruling, the Nagpur Bench of the Bombay High Court, presided over by Justice Urmila Joshi Phalke, has quashed the convictions of Mr. Ravi in two separate cheque bounce cases, following a settlement between the parties involved. The decision underscores the judiciary's inclination towards promoting justice through mutual settlements, even after a conviction has reached finality.
Mr. Ravi, the applicant, was originally convicted by the 20th Judicial Magistrate First Class, Nagpur, in Summary Criminal Case Nos. 5456/2016 and 5457/2016 for offences under Section 138 of the Negotiable Instruments Act, 1881. He was sentenced to six months of simple imprisonment and hefty fines amounting to Rs. 25,50,000 and Rs. 1 Crore, respectively. His appeals and subsequent revisions challenging these convictions were dismissed by the appellate courts and the High Court.
Despite the finality of his conviction, Mr. Ravi and the respondent, Mr. Avinash Shinde, reached a settlement, prompting the filing of Criminal Application Nos. 501/2026 and 505/2026, seeking to quash the convictions. The court verified the settlement terms personally with the parties, acknowledging their agreement.
The crux of the judgment lies in the interpretation of Section 147 of the Negotiable Instruments Act, which permits compounding of offences notwithstanding the provisions of the Criminal Procedure Code. Justice Phalke referenced precedents from the Allahabad High Court and Himachal Pradesh High Court, which upheld the compounding of such offences even after appellate affirmations, provided the parties consented.
The court emphasized that the compensatory aspect of Section 138 proceedings should be prioritized over punitive measures, thereby encouraging settlements. It was noted that disallowing compounding post-conviction would nullify Section 147's legislative intent and burden parties with unnecessary litigation.
This judgment aligns with the Supreme Court's stance in K.M. Ibrahim v. K.P. Mohammed, which recognized the overriding effect of Section 147 over Cr.P.C. provisions, facilitating settlements at any procedural stage.
Justice Phalke concluded that the inherent powers under Section 482 of the Cr.P.C., now read with Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, should be exercised to uphold the settlement, thereby quashing the convictions and acquitting Mr. Ravi.
Bottom Line:
Negotiable Instruments Act - Compounding of offence under Section 138 is permissible even after conviction has reached finality, provided both parties enter into a compromise under Section 147 of the Act.
Statutory provision(s): Negotiable Instruments Act, 1881 Sections 138, 147; Criminal Procedure Code, 1973 Section 482; Bharatiya Nagarik Suraksha Sanhita, 2023 Section 528.
Mr Ravi v. Mr. Avinash Shinde, (Bombay)(Nagpur Bench) : Law Finder Doc id # 2869573
