Case Details: A.S. Pharma Pvt. Ltd. V. Nayati Medical Pvt. Ltd. & Ors., Criminal Appeal No(s). 3051 – 3052 of 2024
In the above mentioned case, the High Court had compounded the offence, even though the appellants/ complainant had not consented, by invoking its inherent power under Section 482 Cr.P.C. Distinguishing these two sections, the Bench of Justices CT Ravikumar and Sanjay Karol observed that dishonour of cheque cases can be compounded under Section 147 (Offence to be compoundable) of the Negotiable Instruments Act (N.I. Act) only with the consent of a complainant.
“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.”
The bench added that the power for compounding offence is under N.I. Act is not available without the consent of a complainant.
“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.”
The bench added that the power for compounding offence is under N.I. Act is not available without the consent of a complainant.
The Supreme relied upon several decisions to bolster its decision. One such case was Raj Reddy Kallem Vs The State of Haryana & Anr wherein the Court in unambiguous terms held that for compounding the offence under Section 138, N.I. Act, ‘consent’ of the complainant is required.
“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,” the Supreme Court observed.
However, in this case, the Court, taking note of a peculiar factual situation, invoked its inherent powers to quash the proceeding pending under Section 138, N.I. Act. To this effect, the Court, in its judgment, distinguished ‘compounding’ and ‘quashing’.
“Hence, despite the lack of consent 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.,” the Court concluded.
