Court Permits Compounding of Offence Under Section 138 of Negotiable Instruments Act
In a notable judgment delivered by the Madras High Court (Madurai Bench), the conviction and sentence of S. Senthilselvi, who was previously found guilty under Section 138 of the Negotiable Instruments Act, 1881, for cheque dishonour, have been set aside following an amicable settlement between the parties involved.
The petitioner, S. Senthilselvi, had been sentenced by the Judicial Magistrate, Fast Track Court at Magisterial Level, Palani, to ten months of simple imprisonment and ordered to pay Rs. 8,75,000 as compensation to the respondent, R. Jayakumar. This decision was upheld by the Additional District Court (Fast Track Court), Palani, and subsequently by the Madras High Court in a revision petition.
However, in a turn of events, both parties reached a settlement, prompting Senthilselvi to approach the High Court again, seeking to compound the offence. The counsel for the respondent confirmed the settlement, noting that Senthilselvi had paid Rs. 6,00,000 via demand draft, with the remainder already deposited in court during earlier proceedings.
Justice B. Pugalendhi, presiding over the case, acknowledged the compoundable nature of the offence under Section 138 of the Negotiable Instruments Act. In light of the settlement, the court allowed the compounding of the offence, thereby setting aside the conviction and sentence imposed on Senthilselvi. The petitioner was acquitted of the charges, and the case was closed accordingly.
This judgment underscores the legal provision under Section 147 of the Negotiable Instruments Act, which allows offences under Section 138 to be compounded, facilitating settlements between parties and promoting amicable resolutions.
Bottom line:-
Negotiable Instruments Act - Offence under Section 138, being compoundable, can be settled amicably between the parties, and upon such settlement, the conviction and sentence can be set aside.
Statutory provision(s): Negotiable Instruments Act, 1881 Sections 138, 147
S. Senthilselvi v. R. Jayakumar, (Madras)(Madurai Bench) : Law Finder Doc id # 2889726
