VENKATESH DUTT Vs. SHOES EAST LIMITED

JUDGEMENT

(1.) Short question involved for consideration in these proceedings is whether the complaint under Section 138 of the Negotiable Instruments Act relating to dishonouring of a cheque which in this case was of the amount of Rs. one crore can be allowed to continue alongwith other complaints under Section 138 of the Act arising out of the agreement or compromise arrived at between the parties in the original complaint wherein several cheques were issued and accepted by the complainant but on presentation were dishonoured. In other words, can the complainant be allowed to continue the original complaint alongwith as many complaints as many cheques are issued and accepted by way of compromise in the original complaint.

(2.) Admittedly in the instant case not only the proceedings of the original complaint relating to the cheque of Rs. One crore are continuing but as many as seven more complaints arising out of the cheques given by the petitioner in lieu of Rs. One crore by way of agreement between the parties have been filed wherein petitioner has been summoned as accused. Admittedly, a civil decree has also been obtained by the respondent/complainant for the amount due from the petitioner to the respondent in respect of which execution proceedings are in vogue.

(3.) Main gravamen of the contention of Mr.L.C.Goyal, learned counsel for petitioner is that once respondent by way of agreement between the parties had accepted seven cheques during the subsistence of the complaint against a cheque of Rs.One crore, this amounted to compounding the offence which has to result in acquittal on account of compounding of the offence as cheques issued subsequently in lieu of the liability of the cheque giving rise to the original complaint had provided fresh cause of action.