A.S. PHARMA PVT. LTD.versusNAYATI MEDICAL PVT. LTD. & ORS.
- Citation
- 2024 INSC 690
- Decided
- 23 July 2024
- Disposal
- Disposed off
Holding
An offence under Section 138 of the Negotiable Instruments Act can be compounded only with the complainant’s consent; the High Court’s exercise of Section 482 and Section 147 without such consent is invalid.
Summary
A.S. Pharma Pvt. Ltd. filed a complaint under Section 138 of the Negotiable Instruments Act, 1881 against Nayati Medical Pvt. Ltd. The respondents offered to settle and applied to compound the offence under Section 320 of the Cr.P.C., but the trial court dismissed the application. The Delhi High Court then exercised its inherent power under Section 482 of the Cr.P.C. together with Section 147 of the Negotiable Instruments Act to compound the offence despite the complainant’s lack of consent, ordering the respondents to pay a specified sum. On appeal, the Supreme Court held that Section 147 requires the complainant’s consent for compounding and that the High Court’s reliance on its inherent power could not override this statutory requirement. The Court also clarified that the Supreme Court’s power under Article 142 to quash proceedings cannot be used by High Courts to compound offences. Consequently, the High Court’s order was set aside, the complaint was quashed, and the appellant was allowed to recover the amount deposited by the respondents.
Issues considered
- The High Court’s power under Section 482 Cr.P.C. to compound an offence under Section 138 NI Act without the complainant’s consent.
- Whether Section 147 of the Negotiable Instruments Act permits compounding of an offence without the complainant’s consent.
- The applicability of the Supreme Court’s power under Article 142 of the Constitution to High Court orders for compounding.
- The correctness of the trial court’s dismissal of the application for compounding.
Legislation cited
- Code of Criminal Procedure, 1973s. 320, s. 482
- Constitution of Indias. Article 142
- Negotiable Instruments Act, 1881s. 138, s. 147
Subjects
Judgment
[2024] 7 S.C.R. 1476 : 2024 INSC 690
A.S. Pharma Pvt. Ltd.
v.
Nayati Medical Pvt. Ltd. & Ors.
(Criminal Appeal No(s). 3051-3052 of 2024)
23 July 2024
[C.T. Ravikumar and Sanjay Karol, JJ.]
Issue for Consideration
High Court whether justified in exercising its inherent power under
Section 482, Cr.P.C and the power under Section 147, N.I. Act, 1881
to compound the offence u/s.138 of the Negotiable Instruments
Act, 1881, despite the non-consent of the complainant-appellant.
Headnotes†
Code of Criminal Procedure, 1973 – s.482 – Negotiable
Instruments Act, 1881 – ss.138, 147 – Scope – Trial Court
dismissed the application for compounding the offence u/s.138,
N.I. Act filed u/s.320 Cr.P.C. – High Court despite the absence
of the consent of the appellant-complainant compounded
the offence u/s.138, N.I. Act qua the respondent-accused,
exercising its inherent power u/s.482 Cr.P.C. and the power
u/s.147, N.I. Act, on the ground that the appellant was equitably
compensated – Sustainability:
Held: Cannot be sustained, set aside to that extent – s.482, Cr.P.C.
and s.147, N.I. Act are different and distinct – s.482, Cr.P.C. is the
inherent power of High Court exercisable even suo motu to give
effect to any order under Cr.P.C., or to prevent abuse of the process
of any court or otherwise to secure the ends of justice – However,
the provision for compounding every offence punishable under the
N.I. Act, u/s.147, N.I. Act, is not a power available to a Court to
exercise without the consent of the complainant – Inherent powers
u/s.482, Cr.P.C. are invocable when no other efficacious remedy is
available to the party concerned and not where a specific remedy
is provided by the statute concerned – Power u/s.482, Cr.P.C.
cannot be invoked 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 – An offence u/s.138, N.I. Act could
be compounded u/s.147 only with the consent of the complainant
[2024] 7 S.C.R. 1477
A.S. Pharma Pvt. Ltd. v. Nayati Medical Pvt. Ltd. & Ors.
concerned – In view of the peculiar facts w.r.t the deposit of the
amount payable under the impugned judgment and the readiness
of the respondent-accused to effect the payment and to settle the
matter, there is no point in restoring the proceedings and continue
them before the trial Court though the impugned judgment has
been set aside – Hence, despite the lack of consent from the
appellant, complaint and all the proceedings emerging therefrom
quashed exercising power u/Article 142 of the Constitution of India.
[Paras 11, 17, 19, 21]
Code of Criminal Procedure, 1973 – s.482 – Negotiable
Instruments Act, 1881 – ss.138, 147 – Constitution of India –
Article 142 – Exercise of power u/Article 142 by the Supreme
Court in Raj Reddy Kallem’s case to quash the proceeding
pending u/s.138, N.I. Act – High Courts quashing proceeding
u/s.138, N.I. Act on the similar lines – Impermissibility:
Held: Supreme Court in Raj Reddy Kallem’s case took note of the
fact that the accused therein had compensated the complainant
and deposited the additional amount as ordered – It was in view of
such peculiar factual situation obtained therein that the Supreme
Court invoked the power u/Article 142 of the Constitution of India
to quash the proceeding pending against the appellant-accused
therein u/s.138, N.I. Act, despite the non-consent of the complainant-
respondent – However, this cannot be a reason for ‘compounding’
an offence u/s.138, N.I. Act, invoking the power u/s.482, Cr.P.C.
and the power u/s.147, N.I. Act, in the absence of consent of the
complainant concerned – The fact that Supreme Court quashed
the proceedings u/s.138, N.I. Act, invoking the power u/Article 142
can be no reason at all for High Courts to pass an order quashing
proceeding u/s.138, N.I. Act, on the similar lines as the power
u/ Article 142 of the Constitution of India is available only to the
Supreme Court of India. [Para 18]
Case Law Cited
Monica Kumar (Dr.) v. State of Uttar Pradesh [2008] 9 SCR 943 :
(2008) 8 SCC 781; Arvind Barsaul (Dr.) v. State of M.P. (2008) 5
SCC 794; Damodar S. Prabhu v. Sayed Babalal H. [2010] 5 SCR
678 : (2010) 5 SCC 663; K.M. Ibrahim v. K.P. Mohammed & Anr.
[2009] 15 SCR 1300 : (2010) 1 SCC 798; O.P. Dholakia v. State
1478 [2024] 7 S.C.R.
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of Haryana & Anr. (2000) 1 SCC 762; JIK Industries Ltd. & Ors
v. Amarlal V. Jumani & Anr. [2012] 3 SCR 114 : (2012) 3 SCC
255; Raj Reddy Kallem v. The State of Haryana & Anr. [2024] 5
SCR 203 : 2024 INSC 347; Meters and Instruments Private Ltd.
& Anr. V. Kanchan Mehta [2017] 10 SCR 66 : (2018) 1 SCC 560;
Expeditious Trial of Cases Under Section 138, N.I. Act, 1881, In
re [2021] 4 SCR 257 : (2021) 16 SCC 116; State of Punjab &
Ors. v. Surinder Kumar & Ors. [1991] Supp. 3 SCR 553 : (1992)
1 SCC 489 – referred to.
List of Acts
Negotiable Instruments Act, 1881; Code of Criminal Procedure,
1973; Constitution of India.
List of Keywords
Section 482 of the Code of Criminal Procedure, 1973; Section 147,
Negotiable Instruments Act, 1881; Article 142 of the Constitution
of India; Quashing of proceeding u/s.138, Negotiable Instruments
Act, 1881; Inherent power; Compounding the offence u/s.138 of the
Negotiable Instruments Act, 1881; Dishonor of cheques; Consent;
Consent of the complainant; Non-consent of the complainant;
Lack of consent of the complainant; ‘Consent’ for compounding
offence; Compounding of offence; Complainant compensated; To
do complete justice between the parties.
Case Arising From
CRIMINAL APPELLATE JURISDICTION : Criminal Appeal Nos.
3051-3052 of 2024
From the Judgment and Order dated 13.12.2023 of the High Court
of Delhi at New Delhi in CRLMC No. 970 of 2023 and CRLMA No.
3701 of 2023
Appearances for Parties
Vimit Trehan, Dhruv Dwivedi, Ravi Bharuka, Advs. for the Appellant.
Giriraj Subramanium, Simarpal Singh Sawhney, Siddhant Juyal,
Veda Singh, Ravi Pathak, Simar Singh Sawhney, Akhilesh Talluri,
Joy Banarjee, Ms. Urvarshi Singh, Aditya Singh, Advs. for the
Respondents.
[2024] 7 S.C.R. 1479
A.S. Pharma Pvt. Ltd. v. Nayati Medical Pvt. Ltd. & Ors.
Judgment / Order of the Supreme Court
Order
Delay condoned.
Leave granted.
1. These appeals are directed against the judgment dated 13.12.2023
passed by the High Court of Delhi in Criminal Miscellaneous Case
No. 970 of 2023 and Criminal Miscellaneous Appeal No. 3701 of
2023. The appellant filed Complaint Case No. 5564 of 2022 alleging
commission of offence punishable under Section 138 of the Negotiable
Instruments Act, 1881 (hereinafter referred to as the ‘N.I. Act’) against
the respondents. On receipt of the summons, the respondents
appeared before the Court and expressed their readiness to settle
the matter by effecting the payment. An application to permit to
compound the offence was filed under Section 320 of the Code of
Criminal Procedure, 1973 (for short, the ‘Cr.P.C.’). The Trial Court
dismissed the same as per order dated 06.02.2023. Aggrieved by
the order of the Trial Court, respondents took up the matter before
the High Court challenging the order dismissing the application for
compounding the offence under Section 138, N.I. Act also seeking
quashment of C.C. No.5564 of 2022 and all further proceeding
thereon in Criminal M. C. No. 970 of 2023. As per the impugned
judgment the High Court, apparently, exercised the inherent power
under Section 482, Cr.P.C., coupled with those under Section 147,
N.I. Act, and ordered thus:-
“17. Accordingly, the present petition is allowed and the
offence of the petitioners/ accused persons in Complaint
Case No.5564/2022 titled A.S. Pharma Pvt. Ltd. vs M/S
Nayati Medical Pvt. Ltd. & Ors. pending before the learned
Trial Court is hereby compounded, albeit subject to the
petitioners depositing before the concerned learned Trial
Court the cumulative cheque(s) amount of Rs.6,50,000/-
(Rs. Six Lakhs fifty thousand only) with 12% simple interest
per annum thereon from the date of cheque(s) return
memo i.e. 18.03.2020 till the date of actual payment of the
amount as also a sum of Rs.1,00,000/- Rs. One Lakh only),
within a period of eight weeks. Needless to mention, the
amount, if any, already deposited before the learned Trial
1480 [2024] 7 S.C.R.
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Court be adjusted in the aforesaid sum(s). The respondent/
complainant is free to move an appropriate application for
release of the amount deposited before the learned Trial
Court in above terms.”
2. Heard the learned counsel appearing for the appellant and the
learned counsel appearing for the respondents.
3. The core contention of the appellant is that an offence under Section
138 of the N.I. Act is not compoundable under Section 320 Cr.P.C.,
and in such circumstances, the application was rightly dismissed by
the Trial Court. Ergo, invoking the power under Section 482 Cr.P.C.,
coupled with those under Section 147, N.I. Act, the High Court
ought not to have compounded the offence without the consent of
the appellant.
4. Per contra, the learned counsel appearing for the respondents
submitted that when the indisputable position is that the offence under
Section 138 of the N.I. Act is compoundable under Section 147 of
the N.I. Act, no palpable illegality could be attributed to the action
in invoking the power under Section 482, Cr.P.C, coupled with the
power under Section 147, N.I. Act to compound the offence. The said
contention of the respondents was resisted by the learned counsel for
the appellant contending that for compounding the offence, consent
of the complainant is required. Sans consent from the complainant,
the High Court was not justified in compounding of the offence under
Section 138, N.I. Act, it is further contended.
5. A perusal of the impugned order would reveal that though the
High Court entertained the challenge against the order rejecting
an application for compounding the offence under Section 138,
N.I. Act filed under Section 320 Cr.P.C., the High Court actually
compounded the offence invoking its inherent power under Section
482 Cr.P.C., coupled with the power under Section 147 of the N.I.
Act. To consider the legality and correctness of the said exercise
of power, it is imperative to understand the scope of Section 482,
Cr.P.C, as also Section 147 of the N.I. Act. Section 482, Cr.P.C.,
reads thus: -
“482. Saving of inherent powers of High Court. — Nothing
in this Code shall be deemed to limit or affect the inherent
powers of the High Court to make such orders as may be
[2024] 7 S.C.R. 1481
A.S. Pharma Pvt. Ltd. v. Nayati Medical Pvt. Ltd. & Ors.
necessary to give effect to any order under this Code, or
to prevent abuse of the process of any Court or otherwise
to secure the ends of justice.”
6. In the decision in Monica Kumar (Dr.) v. State of Uttar Pradesh
[(2008) 8 SCC 781], this Court held that the inherent jurisdiction
under Section 482, Cr.P.C, would be exercised sparingly, carefully
and with caution and only when such exercise is justified by the tests
specifically laid down in the Section itself viz., to give effect to any
order under Cr.P.C., or to prevent abuse of process of any Court or
otherwise to secure the ends of justice.
7. In the decision in Arvind Barsaul (Dr.) v. State of M.P. [(2008) 5
SCC 794], this Court held that though offence under Section 498A,
IPC is not compoundable, but when parties have compromised,
continuance of proceedings would be an abuse of process of law
and hence, could be quashed on a petition filed under Section 482,
Cr.P.C. We referred to this decision to show that when the parties
are ad idem for discontinuance of criminal proceedings which are
not of grave nature, power under Section 482, Cr.P.C. is exercisable.
8. Now, we will refer to Section 147 of the N.I. Act and it reads thus: -
“147. Offence to be compoundable-
Notwithstanding anything contained in the Code of Criminal
Procedure, 1973 (2 of 1974), every offence punishable
under this Act shall be compoundable.”
9. Thus, a bare perusal of Section 482, Cr.P.C., and Section 147, N.I.
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 Cr.P.C., or to prevent abuse of the process of
any court or otherwise to secure the ends of justice. However, the
provision for compounding every offence punishable under the N.I.
Act, under Section 147, N.I. Act, is not a power available to a Court
to exercise without the consent of the complainant. We will dilate
on this aspect a little later.
10. Now, in the context of the rival contentions, it is worthwhile to note
that by the combined exercise of powers under Section 482, Cr.P.C.,
and Section 147, N.I. Act, the High Court, has actually compounded
the offence, under Section 138, N.I. Act, despite the non-consent of
1482 [2024] 7 S.C.R.
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the complainant/ appellant herein therefor. Contextually, it is relevant
to refer to paragraph 102 (6) of the decision of this Court in State
of Haryana v. Bhajan Lal (AIR 1992 SC 604), which reads thus: -
“Where there is an express legal bar engrafted in any of
the provisions of the Code or the concerned Act (under
which a criminal proceeding is instituted) to the institution
and continuance of the proceedings and/or where there
is a specific provision in the code or the concerned Act,
providing efficacious redress for the grievance of the
aggrieved party.”
(underline supplied)
11. It is thus well-neigh settled position that the inherent powers under
Section 482, Cr.P.C., are invocable when no other efficacious remedy
is available to the party concerned and not where a specific remedy
is provided by the statute concerned. We may further add here that
certainly the power under Section 482, Cr.P.C., 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.
12. Before delving into the question whether consent of the complainant,
who is to compound the offence, is required to exercise the power
under Section 147, N.I. Act, it is only appropriate to refer to paragraphs
12 and 13 of the impugned judgment of the High Court. They read
thus: -
“12. Broadly speaking, in the considered opinion of this
Court, the essence of all the aforesaid pronouncements
by the Hon’ble Supreme Court coupled with Section 138
of the N.I. Act read together with the other provisions of
the N.I. Act is that the consent of the complainant is not
mandatory at the time of compounding of the offence
under Section 138 of the N.I. Act, once the complainant
has been equitably compensated.
13. In effect, whence the complainant has been reasonably
compensated the accused can be discharged/ acquitted
even without the consent of the complainant, in the interest
of justice and to prevent the abuse of the process of law,
[2024] 7 S.C.R. 1483
A.S. Pharma Pvt. Ltd. v. Nayati Medical Pvt. Ltd. & Ors.
since once an accused accepts his liability to pay the
cheque amount, there will be no fruitful purpose in keeping
the complaint alive.”
(Underline supplied)
13. Having gone through the factual matrix of the case on hand and
the afore-extracted paragraph Nos. 12 and 13 of the impugned
judgment, we are of the considered view that the understanding and
exposition of law by the High Court on the question of invocation of
the power under Section 482, Cr.P.C., and Section 147, N.I. Act to
compound the offence under Section 138, N.I. Act, run contrary to
the law enunciated by this Court on the said question. In the light of
the decisions of this Court in Damodar S. Prabhu v. Sayed Babalal
H. [(2010) 5 SCC 663], K.M. Ibrahim v. K.P. Mohammed & Anr.
[(2010) 1 SCC 798] and O.P. Dholakia v. State of Haryana & Anr.
[(2000) 1 SCC 762], there cannot be any doubt with regard to the
position that offence under Section 138, N.I. Act could be compounded
under Section 147, N.I. Act, at any stage of the proceedings.
14. As relates the requirement of ‘consent’ for compounding offence
under Section 138, N.I. Act, by invoking the power under Section
147, N.I. Act, it is to be noted that the question is no longer res
integra. This Court in the decision in JIK Industries Ltd. & Ors v.
Amarlal V.Jumani & Anr. [(2012) 3 SCC 255] declined to accept
the contention that in view of the non-obstante clause in Section
147, NI Act, which is a special statute, the requirement of consent
of the person compounding the offence under Section 138, N.I. Act,
is not required. After extracting provision under Section 147, N.I. Act,
this Court in JIK Industries Ltd. case (supra) observed and held in
paragraph 58 and 59 thereof thus: -
“58. Relying on the aforesaid non obstante clause in
Section 147 of the NI Act, the learned counsel for the
appellant argued that a three-Judge Bench decision of
this Court in Damodar [(2010) 5 SCC 663], held that in
view of non obstante clause in Section 147 of the NI Act,
which is a special statute, the requirement of consent of
the person compounding in Section 320 of the Code is
not required in the case of compounding of an offence
under the NI Act.
1484 [2024] 7 S.C.R.
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59. This Court is unable to accept the aforesaid contention
for various reasons which are discussed below.”
15. In the contextual situation it is relevant to refer to a recent decision
of this Court in Raj Reddy Kallem v. The State of Haryana & Anr.
[2024 INSC 347]. The said decision would reveal that this Court
took note of earlier decisions of this Court in JIK Industries Ltd.
case (supra) as also in the decision in Meters and Instruments
Private Ltd. & Anr. V. Kanchan Mehta [(2018) 1 SCC 560] and in
un-ambiguous terms held that for compounding the offence under
Section 138, N.I. Act, ‘consent’ of the complainant is required. In
Kanchan Mehta’s case (supra) even after referring to the decision
in JIK Industries ltd. case (supra) this Court held that even in the
absence of ‘consent’ Court could close criminal proceedings against
an accused in a case under Section 138, N.I. Act, if the accused had
compensated the complainant. It was held therein thus: -
18.3. Though compounding requires consent of both
parties, even in absence of such consent, the court, in the
interests of justice, on being satisfied that the complainant
has been duly compensated, can in its discretion close
the proceedings and discharge the accused.
16. But then, it is to be noted that later a five-Judge Constitution Bench
in Expeditious Trial of Cases Under Section 138, N.I. Act, 1881,
In re (2021) 16 SCC 116 held that observation in Kanchan Mehta’s
decision giving discretion to the trial Court “to close the proceedings
and discharge the accused”, by reading Section 258, Cr.P.C.,
which confers the power to stop proceeding in certain cases, ‘not
a good law’. In Raj Reddy Kallem’s case (supra), after referring
to the above positions this Court further observed that even in
Kanchan Mehta’s case (supra) nowhere it was contemplated that
‘compounding’ could be done without the ‘consent’ of the parties.
It is worthwhile to note at this juncture that in Raj Reddy Kallem’s
case this Court drew nice distinction between ‘quashing of a case’
and ‘compounding an offence’. To drive that point home, this Court
referred to the decision in JIK Industries Ltd. case (supra), where
this Court distinguished the quashing of a case from compounding
as hereunder: -
[2024] 7 S.C.R. 1485
A.S. Pharma Pvt. Ltd. v. Nayati Medical Pvt. Ltd. & Ors.
“Quashing of a case is different from compounding. In
quashing, the Court applies it but in compounding it is
primarily based on consent of the injured party. Therefore,
the two cannot be equated.”
17. It is in the aforesaid circumstances that we held that the question
whether the offence under Section 138, N.I. Act could be compounded
invoking the power under Section 147, N.I. Act, without consent of the
complainant concerned, is no longer res integra. In short, the position
is ‘that an offence under Section 138, N.I. Act could be compounded
under Section 147 thereof, only with the consent of the complainant
concerned’. In that view of the matter, the impugned judgment of
the High Court wherein despite the absence of the consent of the
appellant-complainant compounded the offence under Section 138,
N.I. Act, on the ground that the appellant was equitably compensated,
could not be sustained.
18. In the context of the issues involved another aspect of the matter
also requires consideration. The decision in Raj Reddy Kallem’s case
(supra), also stands on a similar footing inasmuch as the complainant
therein was duly compensated by the accused but the complainant did
not agree for compounding the offence. After observing that, Courts
could not compel the complainant to give consent for compounding the
offence under Section 138, N.I. Act, this Court in Raj Reddy Kallem’s
case (supra) took note of the peculiar factual situation obtained and
invoked the power under Section 142 of the Constitution of India to
quash the proceeding pending against the appellant-accused under
Section 138, N.I. Act. True that in Raj Reddy Kallem’s case it was
despite the non-consent of the complainant-respondent that the
proceedings were quashed against the appellant therein, inter alia,
taking note of the fact that the accused therein had compensated
the complainant and furthermore deposited the additional amount,
as has been ordered by this Court. We have no doubt in holding that
merely because taking into account such aspects and circumstances
this Court ‘quashed’ the proceedings by invocation of the power
under Article 142 of the Constitution of India, cannot be a reason for
‘compounding’ an offence under Section 138, N.I. Act, invoking the
power under Section 482, Cr.P.C. and the power under Section 147,
N.I. Act, in the absence of consent of the complainant concerned
in view of the decision referred hereinbefore. In this context, this is
to be noted that the fact that this Court quashed the proceedings
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under Section 138, N.I. Act, invoking the power under Article 142 of
the Constitution of India can be no reason at all for High Courts to
pass an order quashing proceeding under Section 138, N.I. Act, on
the similar lines as the power under Article 142 of the Constitution of
India is available only to the Supreme Court of India. In this context
it is relevant to refer to the three-Judge Bench of this Court in State
of Punjab & Ors. v. Surinder Kumar & Ors. [(1992) 1 SCC 489],
this Court in paragraph 6 to 8 therein held thus: -
6. A decision is available as a precedent only if it decides
a question of law. The respondents are, therefore, not
entitled to rely upon an order of this Court which directs a
temporary employee to be regularised in his service without
assigning reasons. It has to be presumed that for special
grounds which must have been available to the temporary
employees in those cases, they were entitled to the relief
granted. Merely because grounds are not mentioned in a
judgment of this Court, it cannot be understood to have
been passed without an adequate legal basis therefor.
On the question of the requirement to assign reasons for
an order, a distinction has to be kept in mind between
a court whose judgment is not subject to further appeal
and other courts. One of the main reasons for disclosing
and discussing the grounds in support of a judgment is
to enable a higher court to examine the same in case of
a challenge. It is, of course, desirable to assign reasons
for every order or judgment, but the requirement is not
imperative in the case of this Court. It is, therefore, futile
to suggest that if this Court has issued an order which
apparently seems to be similar to the impugned order, the
High Court can also do so. There is still another reason
why the High Court cannot be equated with this Court.
The Constitution has, by Article 142, empowered the
Supreme Court to make such orders as may be necessary
“for doing complete justice in any case or matter pending
before it”, which authority the High Court does not enjoy.
The jurisdiction of the High Court, while dealing with a writ
petition, is circumscribed by the limitations discussed and
declared by the judicial decisions, and it cannot transgress
the limits on the basis of whims or subjective sense of
justice varying from Judge to Judge.
[2024] 7 S.C.R. 1487
A.S. Pharma Pvt. Ltd. v. Nayati Medical Pvt. Ltd. & Ors.
7. It is true that the High Court is entitled to exercise its
judicial discretion in deciding writ petitions or civil revision
applications but this discretion has to be confined in
declining to entertain petitions and refusing to grant relief,
asked for by petitioners, on adequate considerations; and
it does not permit the High Court to grant relief on such
a consideration alone.
8. We, therefore, reject the argument addressed on behalf
of the respondents that the High Court was entitled to
pass any order which it thought fit in the interest of justice.
Accordingly, we set aside the impugned order and allow
the appeal, but in the circumstances without costs.
19. The upshot of the discussion is that the High Court had clearly fallen
in error in invoking the power under Section 482, Cr.P.C., as also the
power under Section 147, N.I. Act, to compound the offence under
Section 138 of the N.I. Act qua the respondent-accused. Hence, the
impugned judgment to the extent it compounded the offence under
Section 138, N.I. Act invoking the inherent power under Section 482,
Cr.P.C. and the power under Section 147, N.I. Act stands quashed
and set aside.
20. However, the position is that the respondents have, by now, deposited
an amount of Rs. 6,50,000/- along with 12% simple interest per annum
from the date of cheque till the date of actual payment besides a sum
of Rs. 1 lakh payable additionally, as ordered under the impugned
judgment before the trial court. Therefore, the amount is available
to be withdrawn by the appellant-complainant.
21. In view of the peculiar position thus obtained with respect to the
deposit of the amount payable under the impugned judgment, the
fact that the dishonored cheque Nos.17632 dated 19.01.2020 and
17633 dated 09.02.2020 were respectively for Rs.3,00,000/- and
Rs.3,50,000/- and the further fact that upon receiving the summons,
the respondent-accused have expressed their readiness to effect
the payment and to settle the matter, we are of the considered view
that there is no point in restoring the proceedings and to permit their
continuance before the trial Court, though we have set aside the
impugned judgment to the extent it compounded the offence under
Section 138, of the N.I. Act, invoking the power under Section 482,
Cr.P.C., and Section 147, N.I. Act. Hence, despite the lack of consent
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from the appellant-complainant, we found that it is a befitting case to
invoke the power of this Court under Article 142 of the Constitution
of India to do complete justice between the parties and to quash
Complaint Case No.5564 of 2022 as also all proceedings emerging
therefrom. Hence, Complaint Case No. 5564 of 2022, pending before
the Court of MM (N.I. Act), Digital Court-02/SED, Saket District
Courts and all the further proceedings therefrom stand set aside and
quashed. The appellant-complainant will be entitled to withdraw, in
accordance with law, entire amount in deposit before the trial Court
viz., Rs.6,50,000/- along with 12% simple interest per annum from
the date of the cheque in question till the date of actual payment
along with the additionally paid Rs.1,00,000/-. We make it clear that
observations, if any, made in this case are solely for the purpose of
deciding the captioned appeals.
22. The appeals stand disposed of on the above terms.
Pending application(s), if any, shall stand disposed of.
Result of the case: Appeals disposed of.
†
Headnotes prepared by: Divya Pandey
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