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2022 (4) TMI 64 - HC - Indian LawsDishonor of Cheque - civil wrong - compounding of offences - section 138 of NI Act - HELD THAT:- Unquestionably, the proceedings initiated under the provisions of Act, 1881’ is not the proceeding of recovery of amount of loan, but the proceeding is for getting an amount involved in the cheque, for which complaint under Section 138 of Act, 1881 has been filed. The object of introducing Section 138 of ‘Act, 1881’ was to enhance the acceptability of cheques in the settlement of liabilities. The drawer of cheque is made liable to prosecution on dishonour of cheque with safeguards to prevent harassment of honest drawers. It is basically made to facilitate smooth functioning of business transactions. The nature of offence as comes under Section 138 of Act is primarily related to a civil wrong but the same is made compoundable. The accused can make an application for compounding the offence. It is for the Court to see as to which stage application is made and what amount of compensation or fine is required to be paid to the complainants. There are no justification for remitting the matter before the trial court when it can be done here also, especially when the petitioners have filed this petition under Section 482 of Cr.P.C asking this Court to exercise its inherent power - when a petition under Section 482 of Cr.P.C has been filed asking this Court to exercise the inherent power and petitioners are ready to pay the amount involved in the cheques, there are no reason for not accepting the said offer and quash the proceedings instead of remanding the same to the trial court. Petition allowed.
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