High Court of Delhi Acquits Petitioner in Cheque Bounce Case, Recognizes Settlement and Compounding

In a significant ruling, the High Court of Delhi, led by Hon'ble Mr. Justice Manoj Jain, has acquitted Mr. Devender Sharma in a revision petition concerning a cheque bounce case under Section 138 of the Negotiable Instruments Act. The Court's decision acknowledges the settlement between the parties and the compounding of the offence.

Legal Framework and Context: The petitioner, Devender Sharma, faced conviction under Section 138 of the Negotiable Instruments Act for cheque dishonor. The revision petition was filed under Section 397, read with Sections 401 & 482 of the Criminal Procedure Code.

Settlement and Compounding: The Court noted that while the petitioner was in custody, a settlement was reached with the complainant. An application for compounding the offence was filed under Section 147 of the Negotiable Instruments Act.

Effect of Compounding: The Court, acknowledging the settlement terms, allowed the compounding application, resulting in the acquittal of the petitioner as per Section 320(8) of the Cr.P.C.

Payment and Costs: The petitioner had paid Rs. 4,72,000 as part of the settlement. Following the guidelines from previous judgments, the Court directed the petitioner to pay an additional 10% of the cheque amount as costs.

Condonation of Delay: The Court condoned the delay in filing the revision petitions, with the respondents' consent, to avoid prejudice to their rights and contentions.

Compensation and Sentence: Initially, the petitioner was sentenced to six months of simple imprisonment and ordered to pay double the cheque amount, Rs. 90,000, as compensation.

Court’s Observations on Settlement: The Court carefully examined the settlement agreement, observing that the complainant had received the entire settlement amount without coercion, and agreed to compound the matter.

Reduction in Cost Percentage: Recognizing the petitioner's custody since November 25, 2023, and the absence of other criminal antecedents, the Court reduced the cost from the standard 15% to 10%.

The petition was disposed of with the petitioner's acquittal and instructions for his release, subject to his not being required in any other case. Additionally, the petitioner was directed to pay Rs. 27,000 to the Delhi High Court Legal Services Committee as costs.

Date of Decision: March 27, 2024

Devender Sharma vs. State NCT of Delhi & Anr.