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Sec.138 of N.I. Act

Querist : Anonymous (Querist) 25 July 2011 This query is : Resolved 
Hallo Sir,
I am Junior Advocate practising in Nashik Dist. Complaint filed against my client u/s.138 of N.I.Act it is fixed for hearing. But my client is ready to pay the whole cheque amount with interest even though Complainant is not ready to withdraw the complaint, he is demanding more than cheque amount.
So I just want to know that accused can pay the cheque amount in the Court and whether Court is empowred to acqitt the accused after payment of cheque amount in the Court?
Ajay Bansal (Expert) 25 July 2011
As per last section of N.I. act the complainant has a legal right to compound the matter.So file an application alongwith draft of money in the court,where it should be accepted inspite of opposition by the complainant.
M.Sheik Mohammed Ali (Expert) 25 July 2011
yes, i do agree expert reply, you mentioned to the court ready to settlement of amount
bhupender sharma (Expert) 25 July 2011
u file an application for compounding the offence along with the photocopy of the draft and pay aditional payment as suggessted by the Supreme Court in the Judgement Titled as Damoraran Prabhu Year 2011.
Amit Minocha (Expert) 25 July 2011
make pymnt before the Court itself
DEFENSE ADVOCATE.-firmaction@g (Expert) 26 July 2011
If you can send copy of the complaint we can help you to come out this problem :=

Regarding compounding following Delhi HC citation will be helpful which explains the SC directive in the matter:-

DELHI HIGH COURT

Hitek Industries Industries (Bihar) Ltd. and Ors. v. The State of Delhi and Anr. MANU/DE/2667/2010 (Decided on 08.10.2010)

Criminal- Petition filed for quashing of complaint under Section 138 of Negotiable Instruments Act-In the instant case Petitioners entered into a compromise with the respondent and the learned Trial Court took cognizance of the offence in disregard to the compromise which resulted breach of compromise agreement- What if the Respondent does not agree to the compromise- Whether the Court has power to force compromise on the respondent?

Held, that the Court should quash the Criminal Complaint and consider that this is not the spirit of the judgment of the Supreme Court. The word 'compromise' itself signifies an agreement between the two parties to compound the offence. If the parties do not agree to compound the offence, the Court has to proceed with the complaint. It is different thing that the Court on considering the offer of payment of cheque amount plus cost may not award a punishment of imprisonment and may only award penalty plus compensation. The Court cannot force the Respondent to enter into a compromise on deposit of cheque amount or the penalty amount by the accused. The Court can only advise/ask the Respondent to consider the offer of compromise. The petitioner during arguments offered to pay 15% of the cheque amount as cost to be deposited with Legal Aid. It is submitted that in view of this offer of the petitioner the petition should be allowed and complaint under Section 138 NIC Act should be quashed.



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