Arif Iqbal (Advocate) 20 July 2011

NI Act compounding

Hello everybody

Please guide me through following situation. I am for the complainant side.

1) Complainant filed a case u/s 138 NI Act after complying every requirements. Case is now pending for cross examination of complainant's witnesses.

2) During pendency of the case, the complainant, out of the Court, accepted part payment of the cheque dishonoured amount, from the accused and issued a money reciept thereof by referring the case. The accused has not paid the balance amount yet.

Now my question is whether the acceptance of part payment of the said dishonoured amount and issueing the money reciept (by referring the pending case) will affect the merit of the case. Kindly enlighten me with suitable precedents, if any.

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4 Replies

THANKACHAN V P (Advocate & Notary) 21 July 2011

No it won't affect the case.

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Ajit P. Jain (Lawyer) 21 July 2011

If you have agreed in compromise deed that you shall withdraw the complaint, then you have to do so. But if you have not promised to withdraw the complasint without getting the full amount than there shall be no difficulty in the case.

It is clearly provided in the act, that after passing the statutory period (u/s 138-C N.I. Act) even any payment made by the accused shall not absolve his criminal liability as laid down by Hon’ble Supreme Court in various cases as also in “Rajneesh Aggarwal v Amit J. Bhalla” on 01.01.2001 that “ ….. Deposit of payment of amount in question during pendency of proceedings, would not absolve accused of his criminal liability under the offence ……….. (Paras 7)

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Ajit P. Jain (Lawyer) 22 July 2011

Kindly read section 138 N.I. Act before any comment.

Negotiable Instruments Act, 1881, S.138 - Dishonour of cheque - Payment after commission of offence - Once the offence is committed, any payment made subsequent thereof, will not absolve the accused of the liability of the criminal offence, though in the matter of awarding of sentence, it may have some effect on the Court trying the offence. (Vishnu Bhat Vs Narayan R.Bandekar & Ors.) 2008(2) Civil Court Cases 052 (Bombay) : 2008(2) Criminal Court Cases 171 (Bombay)

Negotiable Instruments Act, 1881, S.138 - Dishonour of cheque - Necessary ingredients of the offence are : (1) a cheque was issued; (ii) the same was presented; (iii) it was dishonoured; (iv) a notice was served on the person sought to be made liable and; (v) despite service of notice, neither any payment was made nor other obligations, if any, were complied with within fifteen days from the date of receipt of notice. (Subodh S.Salaskar Vs Jayprakash M.Shah & Anr.) 2008(4) Civil Court Cases 011 (S.C.) : 2008(4) Criminal Court Cases 076 (S.C.) : 2008(3) Apex Court Judgments 699 (S.C.)

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sweta singh (n/a) 22 July 2011

no part payment cannot alter ur case whichever stage it is in.........yes u may take other date if the accused wants 2 pay the full amount...withingtat date...and then u can withdraw the case...there's no problem

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