Punjab and Haryana High Court Dismisses Petition Seeking Compounding of Cheque Dishonour Offence without Complainant's Consent

In a recent judgment, the Punjab and Haryana High Court dismissed a petition filed under Section 482 of the Criminal Procedure Code, seeking the compounding of a cheque dishonour offence without the consent of the complainant. The case, titled Sarda Alloys Pvt. Ltd. and others v. Bansal Alloys & Metal Pvt. Ltd., involved a complaint filed under Section 138 of the Negotiable Instruments Act, 1881, along with Section 420 of the Indian Penal Code.

The petitioners had moved an application for the compounding of the offence, stating their willingness to pay the entire cheque amount. However, both the trial court and the Sessions Judge dismissed the application, emphasizing the necessity of the complainant's consent for compounding. The petitioners contended that their offer to pay the cheque amount should have been sufficient grounds for compounding, relying on various legal precedents.

Examining the matter, the High Court referred to Section 147 of the Negotiable Instruments Act, which mandates the complainant's consent for the compounding of offences under the Act. It cited judgments of the Supreme Court, including JIK Industries Limited & Ors. v. Amarlal V. Jumani and Another, which clarified the requirement of the complainant's consent. The court also referred to M/s Meters and Instruments Private Limited & Anr. v. Kanchan Mehta, which held that the court could close the proceedings if the cheque amount, along with interest and costs, was paid by a specified date.

The High Court noted that the petitioners had failed to obtain the complainant's consent for compounding and that the cited judgments did not support their claim for compounding solely based on their unilateral application. Additionally, the court considered the petitioners' conduct, as they owed a significant amount and had issued multiple dishonoured cheques.

Based on these considerations, the High Court held that without the complainant's consent, the compounding of the offence could not be permitted. Consequently, the petition seeking compounding without consent was dismissed.

This judgment underscores the importance of obtaining the complainant's consent for the compounding of offences, especially in cases of cheque dishonour. It reaffirms the principle that unilateral applications by the accused cannot override the requirement of the complainant's consent for compounding proceedings.

Decided on: 12.05.2023

Sarda Alloys Pvt. Ltd. And others vs Bansal Alloys & Metal Pvt. Ltd.