Negotiable Instruments Act, 1881 – s.138 – Compounding of offence – “Consent”:

Held: Even though the complainant was duly compensated by the accused yet the complainant does not agree for the compounding of the offence, the courts cannot compel the complainant to give ‘consent’ for compounding of the matter – Mere repayment of the amount cannot mean that the appellant is absolved from the criminal liabilities u/s.138 – However, in the present case, the appellant was in jail for more than 1 year before being released on bail and had also compensated the complainant and in compliance of the order passed by this Court, he deposited an additional amount of Rs.10 lacs towards interest for delayed payment – Thus, there is no purpose now to keep the proceedings pending in appeal before the lower appellate court – Even though the complainant is unwilling to compound the case but, in the facts and circumstances of the present case the proceedings must come to an end – Quashing of a case is different from compounding – All the criminal proceedings qua appellant arising out of FIR No.35 of 2014 pending before Chief Judicial Magistrate, quashed – Since, criminal appeals filed by appellant against his conviction u/s.138 are also pending, said proceedings also quashed – Hence, all the pending criminal appeals against the appellant in the present matter quashed in exercise powers u/Article 142 of the Constitution of India – Impugned order of High Court as also the conviction and sentence awarded by trial court, set aside. [Paras 12,14]

Penal Code, 1860 – ss. 406, 420, 120B – Appellant took advance money from the complainant but failed to supply the machine – FIR against the appellant in addition to proceedings u/s.138, Negotiable Instruments Act, 1881 – Allegations that from the very beginning the appellant had the intention of cheating the complainant: 

Held: As far as FIR case u/ss. 406, 420, 120B is concerned, there is no merit in the allegations that the appellant from the very beginning had the intention of cheating the complainant – Though, the appellant failed to procure and supply the machine even after taking the advance money from the complainant but there is nothing on record to show that the appellant had any ill intention of cheating or defrauding the complainant from the very inception – Transaction between the parties was purely civil in nature which does not attract criminal law in any way. [Para 13]

Negotiable Instruments Act, 1881 – ss. 147, 138 – Offences to be compoundable:

Held: As per s.147, all offences punishable under the Negotiable Instruments Act are compoundable – However, unlike s.320 of CrPC, the NI Act does not elaborate upon the manner in which offences should be compounded – In cases of s.138, the accused must try for compounding at the initial stages instead of the later stage, however, there is no bar to seek the compounding of the offence at later stages of criminal proceedings including after conviction, like the present case. [Para 12]