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arun (employee)     09 January 2014

Sec-138- compounding

Dear Sirs,

Briefly the details of the case:

A business transaction ,transacted at delhi , cheque issued at bangalore.Chk signed by two directors.The cheque in question was returned ,the case filed as per the rules.The complainant made the company , me and my wife one other director who has not signed the cheque.

recived the summons from delhi court which educates the accused with the below citation: "Further take notice that unless you are prepared to admit the offence charged, you should bringyour witnesses with you on the date mentioned above.

Note: In terms of judgment dated 03.05.2010 of Hon'ble Supreme Court of India in Crl. Appeal No.
963 of 2010 titled as "Damodar S. Prabhu Vs. Sayed Babalal H.", you are hereby informed that
you can make an application for compounding of the offence at the first or second hearing of
the case and in that case compounding may be a owed by the court without imposing any cost.
Dated this 11'hday of September, 2013." -unquote 

The first hearing exemption was  taken . In the second hearing A dd for the cheque amount was sent to our lawyer.Now my lawyer says that the complainant refused to accept the DD .

My question: I wanted to compound the case and close it in the second hearing itself  to save myself from the hassels involved in attending the case being in bangalore. What is the next step?

Is it mandatory that i should attend the case on the next hearing date to settle the issue?If so what significance does the citation given in the summons order hold for accused willing to compound the case.?

Thanking you all in advance for the efforts that you may take in providing clarity on the subject matter.


 4 Replies

Hemant Agarwal ( Mumbai : 9820174108)     09 January 2014

1.  Move appropriate application before the Court, for compounding, attaching the DD alongwith the application, praying for compounding the matter.

2.  Unless the complainant proves deliberate and malafied intention on part of the Accused, the Magistrate will compound the case, subject to various other parameters.

3.  The presence of the Accused is necessary, before the court, to compound the offence.  The court may levy penalty in the matter, which would be required to pay immediately.

4.  The magistrate has discretionery powers, to dismiss the case as infructous, if the complainant refuses to accept the DD, and any penalty the court may levy.

Keep Smiling .... Hemant Agarwal

Rajeev Kumar (Lawyer/Advocate)     09 January 2014

You can compound the case by paying the cheque amount and you will be absolved.

sridhar pasumarthy (ADVOCATE)     09 January 2014

If the complainant is willing, you had better compromise the matter by filing an application.  But don't miss to make it on the 2nd hearing, else you need to pay up to 10% of cheque amount to the  Legal Services Authority of the concerned district as per the judgment of supreme court cited in your summons..

G D Rajan (Advocate - High Court Madras)     09 January 2014

Hello Arun,

1) What was the amount of transaction?
2) For what reason the cheque was returned by the bank?
3) Was there a communication from other party seeking the payment/response af the cheque was returned
4) Have you replied to such responses?

May be this information will be useful to give precise guidelines to you.

However, I don't think, it is very necessary for you to appear before the court. You might, present a letter explaining  the difficulties in appearing and also produce the DD coipes which was sent to the other party through your Lawyer in Delhi. You might also say, interest amount can be paid by you alongwith principle. There is a Judgment, which says, if the respondent pay the full amount with interest, it is not necessary to go for penal punishment.

You need further advice, I can consult with my senior lawyer and give legal opinion at a cost

Thanks & Regards
Devarajan G


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