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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