HC acquits person accused of offence u/s 138 as parties reached settlement and claim was satisfied

Case details: Ravikumar K v. Smt. Mangala Gowri - [2021] 129 taxmann.com 290 (Karnataka)

Judiciary and Counsel Details

• • Ashok G. Nijagannavar, J. 
  • Subramanya P.D., Adv. for the Appellant.
  • Amith Deshpande, Adv. for the Respondent.

Facts of the Case

A complaint under section 138 of the Negotiable Instrument Act, 1881 was filed against the accused alleging dishonour of cheques issued by the accused. However, both parties amicably settled the dispute and filed a compromise petition/joint memo before Criminal Court.

One of the terms of compromise was that on receiving cheque amount of Rs. 90,000, the complainant had to withdraw a civil suit filed before Trial Court, for recovery of Rs. 21,000.

High Court Held

According to the provisions of the joint memo, the complainant had received the whole cheque amount of Rs. 90,000, and the complainant was required to dismiss the civil complaint filed before the Trial Court after the accused had satisfied his complete claim.

The Complainant, on the other hand, had failed to meet his obligations and was able to get a judgment for the recovery of Rs. 21,000 in damages. On the circumstances, having satisfied the claim of the accused, she was acquitted of the accusations brought against her for violations of section 138 of the Negotiable Instrument Act, 1881.