Rajender v. The Sonepat District Primary Co-Operative Agriculture And Rural Devlopement Bank Ltd.
! $%
& '
(% )
*+
!,!
!
),%& -.
/
% 01
00
! $%
& '
(% )
*+
!,!
!
),%& -.
/
%
!"
$ +# , .2 *)
%
'!# 3#2 *,*42 5 ' # $
%&'(&%)(*! %%)
%&+'+%)(*! %'%) -# #) ,
-# ' 7+
.
$!
.# $# 2
,, +& '
8*9!
*:
*9!
*1 &
% -.
8:
%% < ) & &
2 & ,,;
# 6'
& &
,
%&'(%)(, %%)
%&+'%)(, %'%) "# &&
#,, % &
) ;,, #'
,
!, &
9
5;)
. ) '2 .
,,! 8:
,
0 7+ 6, < !& # =7< *>:
&%! %! #6,
,+
) 8:
&%!+
!+&
1
* $ ?!+2 $%2
&%!+
1
1 ?! + ,2 $%2 #) !%#,
!, 6.+ !
7+ 6, < !& ; , +
+ ! #!
#@! 6
711 &! 2 02
!
)!
%
# + 6 '
#2
; !&&
1
12
;
%&% + &%,
&%
&
%
&# ; !
%'
&% ! 22
1 2
; +
+ !
&%
&
%
) &# ; !
%'
&% ! 2 2
%%, +
6 * $ ?!+2 $%2 ; &
1
!%#,
&
/ !,
!6& &% ,&
% &% &! ! 22
:
2 2
:
%-.
% %-.
!,, ,& 5 !
!6&
%-.
!
:
:
% &% &! #
! + &
5
, !%
&% &!
) %2
6 &%!
%% 5
, !%
<
- .*/0 /1 "*"*2!$
*3*!/02 ')()24)( , 5 !"#$%
6 !6& ) '
),)
6) &
,
!
A!
& ,
)
6) 2
) &% ,&
1 ;# !%2 + ) 6 !%
;# ,
&
) !+# @!
, 7 0
"# & .
&
+ ! & 6 '
A!
!
&% 1 / $ !, !6& ,& 8*9!
*1:
%-. 5 !
!6& %
)
&! #
! ;
5 !6& # 6
&%!
@!
! & ) !% &
0 5) # !,
% !
6, 2
%
&% ! &! 22
:
2 2
:
%(% %-.
!
&%
@! ,'
) )
& #;# 6 ) ,,;
+ '10. Therefore, it is very clear that although dishonour of cheque entails criminal consequence, the legislature by virtue of section 147 of the NI Act has made it compoundable notwithstanding the provisions of the Code of Criminal Procedure, 1973 and the same can be compounded at any stage of the proceedings especially when the parties have themselves arrived at a voluntary compromise.
11. In the present case, the compromise deed dated 06.04.2025 and the Affidavit on behalf of the Respondent No.1 dated 16.04.2025 is annexed to the present petition as Annexure P3 and P6, respectively. Upon careful perusal of the recitals contained in the said documents, it clearly emerges that the Respondent No.1 in consideration of Two Demand Drafts bearing no(s). 004348 dated 04.04.2025 and 004303 dated 11.02.2025 for Rs. 2.5 lakhs each along with three cheques bearing no(s). 354412 dated 10.05.2025, 354413 dated 10.06.2025 and 354414 dated 10.07.2025 of Rs. 1 lakh each has arrived at a compromise with appellant without any coercion and at his own will and voluntarily. Once the complainant has signed the compromise deed accepting the amount in full and final settlement of the default sum the proceedings under Section 138 of the NI Act cannot hold water, therefore, the concurrent conviction rendered by the Courts below has to be set5aside.
12. Therefore, in the light of aforesaid discussion, ; # the present appeal deserves to be allowed. Accordingly, the same stands '$$ (
and consequently the impugned order dated 27.03.2025 in CRR 2563 of 2025 is
and the order of conviction and sentence imposed on appellant is quashed.'
<
,;
+
@!
!
6 %!
%
%% &
) &% '
&# &
9% !
) '
&'
%% %! # !
!)!*+ %
! & ,! %! #
'
) &&
!
'
&. !
+ , &.
&%!6, * ; ?!+ -#
,-,
. /
!0, 1 %
2 %.
!+# ?! *3 4, #, B7. 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 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......
xxxx xxxx xxxx 18.2. The object of the provision being primarily compensatory, punitive element being mainly with the object of enforcing the compensatory element, compounding at the initial stage has to be encouraged but is not debarred at later stage subject to appropriate compensation as may be found acceptable to the parties or the court. 18.3. Though compounding requires consent of both parties, even in absence of such consent, the court, in the interests of justice, on being satisfied that the complainant has been duly compensated, can in its discretion close the proceedings and discharge the accused." , 6 %, !%
/, )
!,-%*
.# /
%
1
%+% ) ; ?!+ -#
2.0.
!'$!2
3%
9&
! ;##
&%! 2 ++
) '
@!
%.
!+# ?! *.
3!&
4+!, ,,;
; #, B82. A perusal of Section 320 makes it clear that the provisions contained in Section 320 and the various sub5sections is a code by itself relating to compounding of offence. It provides for the various parameters and procedures and guidelines in the matter of compounding. If this Court upholds the contention of the appellant that as a result of incorporation of Section 147 in the NI Act, the entire gamut of procedure of Section 320 of the Code are made inapplicable to compounding of an offence under the NI Act, in that case the compounding of offence under the NI Act will be left totally unguided or uncontrolled. Such an interpretation apart from being an absurd or unreasonable one will also be contrary to the provisions of Section 4(2) of the Code, which has been discussed above.
There is no other statutory procedure for compounding of offence under the NI Act. Therefore, Section 147 of the NI Act must be reasonably construed to mean that as a result of the said section the offences under the NI Act are made compoundable, but the main principle of such compounding, namely, the consent of the person aggrieved or the person injured or the complainant cannot be wished away nor can the same be substituted by virtue of Section 147 of the NI Act." @!
6) ! ,&
2
,,! ;,,
) ,,;
1
1 ?!
%'%) + ,2 $ % ;,,
&%!+
1
* $ ?!+2 $ % :
1 ?! + ,2 $ % ;,,
&%!+
* $ ?!+2 $ % :2 # 6'
@!
! 6 6 !
'
6 # +
,,! 2
'2 #,, %
* %# %'
6 %, ,
$
)7 )( C##
%.
+ D7 C##
% 6, D7