In a significant development, the Gujarat High Court has set aside the judgment of conviction and sentence passed against the applicant in a case involving Section 138 of the Negotiable Instruments Act. The matter, involving a complaint by the original complainant, has been resolved with full payment made to the complainant, leading to a consent for compounding the offence as per Section 147 of the Act. The Court’s ruling signifies a successful settlement and acquittal for the applicant.
Facts
- Advocate Mr. Adil Husain Saiyed appears for respondent no.2 through video conferencing.
- Original complainant is also present during the video conferencing.
- Advocate seeks permission to file Vakalatname on behalf of the original complainant.
- Learned APP waives service of notice of Rule on behalf of the State
- Mr. Adil Husain Saiyed, learned advocate waives service of notice of Rule on behalf of respondent no.2
- Applicant challenges judgment of conviction and sentence passed under Section 138 of Negotiable Instruments Act, 1881
- Judgment passed by Chief Judicial Magistrate on 02.07.2022 and confirmed by Principal District and Sessions Judge on 08.01.2024
Arguments
- The matter between the parties has been settled.
- All the cheque amount has been paid to the complainant.
- Affidavit of the original complainant confirming settlement outside of court
- Receipt of Rs. 1,00,000/- cheque by the complainant
- Desire of the complainant to not pursue the matter further
- Consent for compounding the offence given by the complainant
Analysis
- Consent for compounding the offence has been given by the complainant.
- Section 147 of the NI Act allows for compounding the offence with the consent of the aggrieved party.
- Section 147 has overriding effect over sub-section (1) of Section 320 of the CrPC.
- Damodar S. Prabhu v. Sayed Baba Lal case supports the overriding effect of Section 147 over Section 320(1) of CrPC.
Decision
- Direct service permitted as dispute has been resolved and entire amount paid to the complainant.
- The matter is considered as compounded as per the provisions under Section 147 of the N.I. Act.
- Judgment and order of conviction and sentence under Section 138 of NI Act quashed and set aside.
- Rule made absolute for acquitting the applicant and releasing them from jail forthwith.
Case Title: AJITBHAI RAHEMANBHAI PATHAN Vs. STATE OF GUJARAT
Case Number: R/CR.RA/869/2024
