Negotiable Instruments Act, 1881 – ss. 138, 139 – Parallel
prosecutions arising from a single transaction u/s.138 –
Impermissibility of – Dishonour of cheques – First set of complaints
filed – Compromise – First complaint pending, cheques issued
pursuant to the compromise deed also dishonoured – Second
complaint filed – Both the complaints if can be pursued
simultaneously – Held: No – A settlement agreement effaces the
original complaint – Non-compliance of the terms of the settlement
agreement or dishonour of cheques issued subsequent to it gives
rise to a fresh cause of action – Allowing prosecution under both
sets of complaints would be contrary to the purpose of the enactment
– First complaint quashed – Further, Single Judge erred in quashing
the criminal complaint on a priori reasoning that the second set of
cheques issued in pursuance of the compromise deed were not in
discharge of a liability – Mere fact that a suit was instituted
challenging the compromise deed would not justify exercising
jurisdiction u/s.482 – It would continue to be valid until a decree of
the appropriate court setting it aside is passed – High Court failed
to notice the import of the presumption u/s.139 which can only be
displaced on the basis of evidence adduced at the trial – Judgment
of the Single Judge quashing the second complaint is set aside –
Code of Criminal Procedure, 1973 – s.482 – Penal Code, 1860 –
ss. 409, 506(1).Negotiable Instruments Act, 1881:
s.138 – Ingredients of – Discussed. s.138 – Purpose of – Held: Primary purpose of s.138 is to
ensure compensation to the complainant – The Act also allows for
parties to enter into a compromise, both during the pendency of the
complaint and even after the conviction of the accused.s.138 – Nature of offence under – Held: It is quasi-criminal,
while it arises out of a civil wrong, the law however, imposes a
criminal penalty in the form of imprisonment or fine. s.139 – Presumption under – Burden of proof – Discussed.