Punjab-Haryana High Court
Tilak Kataria vs State Of Haryana And Anr on 28 April, 2021CRR-2996-2018 (O&M)
& 4 other cases [1]

THE HIGH COURT OF PUNJAB AND HARYANA AT
CHANDIGARH

Date of Decision: 28.04.2021

(1) CRR-2996-2018 (O&M)

Tilak Kataria …..Petitioner

Versus

State of Haryana and another ….Respondents

(2) CRR-3006-2018 (O&M)

Tilak Kataria …..Petitioner

Versus

State of Haryana and another ….Respondents

(3) CRR-3018-2018 (O&M)

Tilak Kataria …..Petitioner

Versus

State of Haryana and another ….Respondents

(4) CRR-3020-2018 (O&M)

Tilak Kataria …..Petitioner

Versus

State of Haryana and another ….Respondents

CORAM: HON’BLE MR. JUSTICE HARNARESH SINGH GILL

Present: Mr. K.S. Chaudhary, Advocate, for the petitioner.

Mr. Pardeep Prakash Chahar, DAG, Haryana.

Mr. Arastu Chopra, Advocate, for respondent No.2.

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HARNARESH SINGH GILL, J.

All the cases are taken up for hearing through video

conferencing.

With no objection from the counsel for the

respondents, CRM-9737-2021; CRM-9735-2021; CRM-9641-

2021 and CRM-9998-2021 are allowed and the date of hearing

in the main petitions is preponed from 16.08.2021 to that of

today.

This order shall dispose of the above noted four

petitions, as common questions of law and facts are involved

therein. However, for the facility of reference, the main order is

being passed in CRR-2996-2018.

In the complaints filed under Section 138 of the

Negotiable Instruments Act, 1881 (for short `the Act’) by

complainant-respondent No.2, the petitioner was convicted and

sentenced vide judgment and order dated 28/29.04.2016 and

18/19.07.2016 passed by the learned Judicial Magistrate, Ist

Class, Panchkula, as under:-

Complaint Case No. Under Sentence
Section
333/2014 138 SI for one year and to pay
the entire amount as fine to
be recovered as
compensation.
294/2014 138 SI for one year and to pay
the entire amount as fine to
be recovered as
compensation.
38/2013 138 RI for 2 years and to pay a
fine of Rs.4000/-
431/2014 138 RI for 2 years and to pay a
fine of Rs.4000/-

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The appeals against the said judgments and orders,

were dismissed by the learned Additional Sessions Judge,

Panchkula on 30.07.2018.

Still aggrieved, the petitioner has filed the present

revision petitions.

Learned counsel for the petitioner contends that

during the pendency of the present petition, a compromise was

arrived at between the parties on 23.01.2019, whereby the entire

amount was agreed to be paid by the petitioner to the

complainant.

A Coordinate Bench of this Court on 09.07.2019,

inter-alia, noticed the factum of compromise and the factum of

payment made and to be made to the complainant. The relevant

extracts from the said order, would read as under:-

“On the last date of hearing, learned counsel for the
petitioner had submitted that the matter has been
compromised amongst the parties in respect of four
cheques out of which the present revision petitions
have arisen.
Pursuant to the aforesaid submission, the
parties were directed to appear before the trial
Court and to get their statements recorded qua
factum of compromise. Since the petitioner was
confined in jail, therefore, the Superintendent,
Model Jail, Chandigarh was directed to make
arrangements for producing the petitioner before
JMIC, Panchkula so as to get his statement
recorded.
Pursuant to the aforesaid direction, the
petitioner was produced before the trial Court
wherein his statement as well as statement of the
complainant was recorded, wherein the parties

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have admitted the factum of compromise. It has
been agreed amongst the parties, as per
compromise deed (Ex.C-1), the petitioner has
agreed to pay an amount of `16,36,000/- in four
installments as follows:-
Cheque Date Amount Drawn at
No (In Rupees)
654243 30.04.2019 4,00,000 SBI
654244 30.07.2019 4,00,000 SBI
654245 30.11.2019 4,00,000 SBI
654246 10.03.2020 4,36,000 SBI

Learned counsel for the petitioner has

submitted that pursuant to the aforesaid

statement, the first installment of Rs.4 lakhs has

already been paid.

Since the substantial agreed amount is yet to

be paid, therefore, the matter is adjourned to

25.09.2019, so as to enable the petitioner to make

payment of the remaining installments as per

schedule………”

CRM-9738-2021; CRM-9736-2021; CRM-9642-2021

and CRM-9999-2021, have been filed in the present set of

petitions, for compounding the offences in view of the settlement

arrived between the parties.

Learned counsel for the petitioner as well as the

learned counsel for respondent No.2-Complainant, are ad-idem

and submit that as the matter stands compromise, necessary

permission may be granted to the parties to compound the

offence under Section 138 N.I.Act; the impugned judgments and

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orders passed by the trial Court and the appellate Court may be

set aside and the petitioner may be acquitted of the charge(s)

framed against him.

At this stage, learned counsel for the petitioner states

that the petitioner, in order to pay the settlement amount to the

complainant, has exhausted his entire resources, including the

sale of his house/flat and, thus, he is not in a position to deposit

the costs in terms of the judgment of the Hon’ble Supreme Court

in Damodar S. Prabhu Vs. Sayed Babalal H., (2010)5 SCC 663.

He, thus, contends that in view of the peculiar facts of the

present case, wherein the complainant has accepted the settled

amount, the imposition of costs in terms of the judgment in

Damodar S. Prabhu’s case (supra) may be waived off.

Learned counsel for respondent No.2-complainant

does not have any objection to the aforesaid prayer made by the

counsel for the petitioner.

The Hon’ble Supreme Court in Madhya Pradesh State

Legal Services Authority Vs. Prateek Jain & Anr., (2014)10 SCC

690, held that it would be for the parties, particularly the

accused person, to make out a plausible case for the

waiver/reduction of the costs and to convince the concerned

Court about the same. It was held as under:-

“….Having regard thereto, we are of the opinion that even

when a case is decided in Lok Adalat, the requirement of

following the guidelines contained in Damodar S. Prabhu

(supra) should normally not be dispensed with. However, if

there is a special/specific reason to deviate therefrom, the

Court is not remediless as Damodar S. Prabhu (supra)

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itself has given discretion to the concerned Court to reduce

the costs with regard to specific facts and circumstances of

the case, while recording reasons in writing about such

variance. Therefore, in those matters where the case has to

be decided/settled in the Lok Adalat, if the Court finds that

it is a result of positive attitude of the parties, in such

appropriate cases, the Court can always reduce the costs

by imposing minimal costs or even waive the same. For

that, it would be for the parties, particularly the accused

person, to make out a plausible case for the

waiver/reduction of costs and to convince the concerned

Court about the same. This course of action, according to

us, would strike a balance between the two competing but

equally important interests, namely, achieving the

objectives delineated in Damodar S. Prabhu (supra) on the

one hand and the public interest which is sought to be

achieved by encouraging settlements/resolution of case

through Lok Adalats.”

Learned counsel for the petitioner apart from heavily

relying upon the said judgment, relies upon the order dated

06.08.2019 passed in Rajendra Vs. Nand Lal, 2020(1) RCR (Crl.)

166, wherein the Hon’ble Apex Court, has held as under:-

“5. Learned counsel appearing for the appellant

submitted that in view of the compromise arrived at

between the parties, the conviction of the appellant

under Section 138 of N.I. Act is to be set aside and the

appellant is entitled to an acquittal. The learned counsel

for the appellant has drawn our attention to the case

of Damodar S. Prabhu vs. Sayed Babalal H., (2010) 5 SCC

663 and submitted that in cases arising under Section

138, N.I. Act where the parties are compromising the

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matter this Court has issued the guidelines as to the levy

of costs depending upon stage of the compromise arrived at

between the parties. The learned counsel for the appellant

has submitted that in the special facts and circumstances

of the case, the Court can waive the costs to be levied. As

discussed earlier, in the present case, the appellant,

accused was acquitted by the Trial Court inter alia on the

ground that the respondent had not established that there

was a legally enforceable debt. Since the appellant was

convicted only in the High Court, the appellant had

substantial ground to raise in the criminal appeal filed

before this Court. Because of the reversal of the acquittal

by the High Court and the conviction recorded only by the

High Court, the appellant had opportunity of negotiating

for settlement in this Court after filing the appeal. In such

facts and circumstances of the case, this is not a case

where cost is to be imposed, as per the guidelines laid

down by this Court as per the judgment reported in (2010)

5 SCC 663 (supra).”

In view of the above, in the present case, when the

complainant does not have any objection to accept the settled

amount and further he is ready to forego the costs to be imposed

in terms of the judgment of the Hon’ble Apex Court in Damodar

S. Prabhu’s case (supra).

After hearing the learned counsel for the parties and

taking into consideration the fact that the parties have settled

their dispute(s) by way of the compromise dated 23.01.2019,

coupled with the law laid down by the Hon’ble Apex Court in

Prateek Jain’s case (supra) and keeping in view the

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specific/special reasons, this Court deviates from the conditions

laid down by the Hon’ble Apex Court in Damodar S. Prabhu’s

case (supra) and grants permission to the parties to compound

the offence punishable under Section 138 N.I.Act. Accordingly,

the impugned judgments and orders passed by the Courts below

are set aside. The complaints under Section 138 N.I.Act are

dismissed and the petitioner is acquitted of the notice(s) of

accusation served upon him.

Disposed of in the aforementioned terms.

28.04.2021 (Hanaresh Singh Gill)
ds Judge

Whether speaking/reasoned: Yes/No
Whether reportable : Yes/No

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