Soman E vs Faisal K

Headnote AI-drafted · Reviewed and approved

The accused was convicted under Section 138 of the Negotiable Instruments Act, 1881 by the Judicial First Class Magistrate Court, Payyoli and sentenced to simple imprisonment till the rising of the Court along with a direction to pay Rs.1,15,895/- as compensation. On appeal, the Sessions Court confirmed the conviction, leading to the present criminal revision petition before the Kerala High Court. During the pendency of the revision, the complainant filed an application under Section 147 of the NI Act seeking permission to compound the offence, stating he had no surviving grievance against the accused.

The Court examined the distinction between compromise and compounding, the scheme of compounding under the Code of Criminal Procedure, 1973 and the Bharatiya Nagarik Suraksha Sanhita, 2023, and the special enabling provision under Section 147 of the NI Act, which commences with a non-obstante clause. The Court noted that Section 147 of the NI Act makes every offence punishable under the Act compoundable, overriding the general framework of Section 320 Cr.P.C., and that composition is in the nature of a unilateral act by the complainant. The question of whether costs as directed in Damodar S. Prabhu v. Sayed Babalal H. [AIR 2010 SC 1907] were a mandatory precondition was also considered.

The Court, with the assistance of the Amicus Curiae, analysed the legislative intent behind Section 147 introduced by Act 55 of 2002 to address the mounting pendency of cheque dishonour cases, and held that the provision is an enabling one facilitating speedy resolution of such disputes. The revision petition was accordingly disposed of permitting compounding of the offence.

Catchwords: Negotiable Instruments Act · Section 138 · dishonour of cheque · compounding of offence · Section 147 NI Act · non-obstante clause · Section 320 CrPC · Section 359 BNSS · compromise vs compounding · unilateral compounding · Damodar S. Prabhu v. Sayed Babalal H. · criminal revision · Kerala High Court