SUPREME COURT: JUDGES NOT POST OFFICE OF PROSECUTION, MUST APPLY JUDICIAL MIND TO DETERMINE IF CASE FOR TRIAL IS MADE
The Business Guardian|August 27, 2024
NEW DELHI T he Supreme Court in the case A.S. Pharma Pvt. Ltd. V. Nayati Medical Pvt. Ltd. & Ors., observed and has reiterated that dishonour of cheque cases can be compounded under Section 147, the Offence to be compoundable of the Negotiable Instruments Act, N.I. Act only with the consent of a complainant.
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SUPREME COURT: JUDGES NOT POST OFFICE OF PROSECUTION, MUST APPLY JUDICIAL MIND TO DETERMINE IF CASE FOR TRIAL IS MADE

The High Court in the case had compounded the offence, even though the appellants or complainant had not consented, by invoking its inherent power under Section 482 of the Code of Criminal Procedure, CrPC.

The bench comprising of Justice CT Ravikumar and Justice Sanjay Karol in the case observed that a bare perusal of Section 482 of Code of Criminal Procedure, CrPC and section 147 of the Negotiable Instrument, NI Act would reveal they are different and distinct. The former being the inherent power of High Court exercisable even suo motu to give effect to any order under Code of Criminal Procedure, CrPC or to prevent abuse of the process of any court or otherwise to secure the ends of justice.

Adding to it, the bench stated that the power for compounding offence is under Negotiable Instrument, NI Act is not available without the consent of a complainant.

The court stated that certainly the power under Section 482 of Code of Criminal Procedure, CrPC is not invocable, ignoring the factor which is sine qua non for the exercise of power to compound the offence(s) under N.I. Act viz., the consent of the complainant.

The court placed reliance in the case JIK Industries Ltd. & Ors v. Amarlal V.Jumani & Anr., wherein the court in the case refused to accept the contention that in view of Section 147, NI Act, which is a special statute, the requirement of consent of the person compounding the offence under Section 13 8, Negotiable Instrument, N.I. Act is not required.

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