Allowed

Baljeet Singh v. the Nathana Primary Cooperative Development Bank Ltd.

Punjab & Haryana HC19 Mar 2024CRM-M/1702/2023

Case brief

AI extract

What is this about?

Petition seeking compounding of a Section 138 NI Act cheque dishonour offence after the trial court rejected the compounding application. The petitioner paid the cheque amount with 9% interest. Relying on Damodar S. Prabhu, the High Court allowed compounding and set aside the rejection order.

What did the court decide?

Order dated 01.12.2022 rejecting compounding set aside; Section 138 NI Act offence against petitioner compounded on payment of Rs.77,086/- with interest.

Baljeet Singh Vs the Nathana Primary Cooperative… — Cheque Dishonour | Punjab & Haryana HC (2024)

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281 �� IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

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CRM-M-1702-2023 Date of decision : 19.03.2024

BALJEET SINGH

....Petitioner

Versus

THE NATHANA PRIMARY COOPERATIVE DEVELOPMENT BANK LTD ....Respondent

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CORAM: HON'BLE MR. JUSTICE PANKAJ JAIN

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Present: Mr. Nirmaljeet Singh, Advocate for the petitioner.

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Mr. Tushar Sharma, Advocate for the respondent.

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PANKAJ JAIN, J. (ORAL)

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Prayer is for quashing of order dated 1^st of December, 2022 passed by JMIC, Bhatinda whereby the application filed by the petitioner seeking compounding of the offence on payment of cheque amount stands rejected.

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Today counsel for the petitioner has brought demand draft amounting to Rs.77,086/- in the name of the complainant which includes cheque amount along with interest @ 9% per annum from the date of issuance of cheque till November, 2023. Copy thereof has been kept with the record.

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In the considered opinion of this Court, the petitioner having paid the cheque amount along with the interest @ 9%, it would not be appropriate to prolong the trial and it is rather in the interest of the complainant also which is a Cooperative Society to accept the said payment instead of wasting and employing its resources in the prolonged trial.

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Deepak Kumar 2024.03.22 10:59 I attest to the accuracy and integrity of this document

CRM-M-1702-2023

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2024:PHHC:039423

Apex Court in the case of Damodar S. Prabhu vs. Sayed

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Babalal H. (2010) 5 SCC 663 held as under:

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“13. It is quite obvious that with respect to the offence of dishonour of cheques, it is the compensatory aspect of the remedy which should be given priority over the punitive aspect. There is also some support for the apprehensions raised by the learned Attorney General that a majority of cheque bounce cases are indeed being compromised or settled by way of compounding, albeit during the later stages of litigation thereby contributing to undue delay in justicedelivery. xxx”

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In view of above, the present petition is allowed. Order dated 01.12.2022 is set aside. Offence punishable under Section 138 of the N.I. Act qua the petitioner is ordered to be compounded.

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March 19, 2024	(Pankaj Jain)
Dpr	Judge
Whether speaking/reasoned	: Yes/No
Whether reportable	: Yes/No

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Deepak Kumar 2024.03.22 10:59 I attest to the accuracy and integrity of this document

Baljeet Singh v. the Nathana Primary Cooperative Development Bank Ltd.

Case brief

What is this about?

What did the court decide?

Baljeet Singh v. the Nathana Primary Cooperative Development Bank Ltd.

Case brief

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What did the court decide?

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