The Tax Publishers 2022 TaxPub(CL) 2940 (All-HC)

NEGOTIABLE INSTRUMENTS ACT, 1881

Section 138

Applicant filed an application for quashing of proceedings under section 138 on the ground that there was a civil dispute and an opportunity was to be granted to him regarding settlement of dispute between the parties, which was allowed by Court by directing the applicant to file application for compounding of offence.

Dishonour of cheque - Application for quashing of proceedings - Prayer regarding grant of opportunity in respect of settlement of disputes between parties - Allowability

Cheque holder filed complaint under section 138 against applicant. The applicant filed an application for quashing of proceedings under section 138 on the ground that it was a civil dispute, which could be settled by way of filing a civil suit. Further, under certain misconception, criminal case had been lodged by opposite party and therefore, an opportunity might be granted to the applicant to sit together and amicably settle the dispute between the parties. Held: If the accused is willing to settle or compromise by way of compounding of the offence at a later stage of litigation, it is generally indicative of some merit in the complainant's case. In such cases it would be desirable if parties choose compounding during the earlier stages of litigation. It is thus directed that the applicant may appear before the Court below within a period of one month from today through the representing counsel and move an application seeking compounding of offence, through compromise. On such application being moved the concerned Court may take adequate steps in accordance with law in this regard and shall provide further opportunity to the applicant which shall not exceed a maximum period of four months from today to make an endeavour in this direction.

REFERRED : Damodar S. Prabhu v. Sayed Babalal H., 2010(5) SCC 663

FAVOUR : In favour of applicant

A.Y. :



IN THE ALLAHABAD HIGH COURT

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