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Criminal · Reportable judgment

Raj Reddy Kallem vs The State of Haryana & Anr.

Court
Supreme Court of India
Date
8 April 2024
Case No.
Criminal Appeal No. 2210 of 2024
Result
Allowed
Bench
A.S. Bopanna, Sudhanshu Dhulia
Citation
[2024] 5 S.C.R. 203 : 2024 INSC 347
Acts & Sections
Negotiable Instruments Act, 1881 IPC Constitution
Supreme Court Reports [2024] 5 S.C.R. 203 : 2024 INSC 347
Issue for consideration
Appellant was convicted u/s.138 of the Negotiable Instruments Act, 1881. Additionally, an FIR was also filed against the appellant u/ss.406, 420, 120B, IPC. Parties agreed to compound the offence at the appellate stage and a settlement was reached. But, the appellant could not pay the amount within the time stipulated in the settlement agreement. However, eventually, entire amount was paid by him but, the complainant did not agree for compounding of the offence. Complainant, if can be compelled by the courts to give consent for compounding of the matter.
Headnote

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:

Read the full headnote (2 more paragraphs)

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]

Keywords: Compounding of offence · Consent for compounding of offences under Section 138, Negotiable Instruments Act, 1881 · Unwillingness to compound the case · Quashing · Complete justice · Transaction civil in nature · Intention of cheating or defrauding

As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.

Full Judgment Text

Order Leave granted. 2. The brief facts leading to this appeal are that in the year 2012 Respondent No.2-complainant placed a purchase order for the supply of “Promotec Fiber Laser Cutting Machine” to the company (M/s Farmax) of the appellant. For the said purchase, an advance amount of Rs.1,55,00,000 was paid to the company of the appellant. All the same, for some reasons, M/s Farmax failed to procure and supply this machine to respondent No.2-complainant. Thereafter, the appellant issued 5 cheques to the complainant towards return of the advance money. Admittedly, some of these cheques wer
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