T G MALLIKARJUNA SETTY Vs. UNION OF INDIA

JUDGEMENT

(1.) WRIT Appeal No. 54 of 2005 arises out of an order passed by our learned brother Justice G.Raghuram on 29.12.2004 dismissing the interlocutory application, duly observing as under:

(2.) THE crucial questions that require to be answered by us are: (1) at what stage, an offence said to have been committed under the Negotiable Instruments Act, 1881 (for short hereinafter referred to as 'N.I. Act') can be allowed or permitted to be compounded? (2) Can any such application/petition be entertained even after the appeal/revision has ended or not?

(3.) INTRODUCTION of Chapter XVII in the N.I. Act with effect from 1.4.1989 has witnessed an avalanche of prosecutions launched against the drawers of cheques, whenever such cheques have been dishonoured by the bankers. This unprecedented quantum leap of prosecutions has necessitated a working group to be constituted by the government for studying and recommending the necessary changes to be made to the N.I. Act to achieve the main thrust that is sought to be supplied. The recommendations of this working group and other related representative bodies have been examined by the Central Government in consultation with the Reserve Bank of India, the regulator in the field and thereafter the Standing Committee on Finance have proposed to introduce certain changes. A far more simplified procedure including conferring discretion upon the court to waive the period of one month, is sought to be introduced in this statutory scheme and simultaneously the offences under the Act are sought to be made compoundable. Hence, among other things, Section 147 came to be introduced through the Negotiable Instruments (Amendment and Misc. Provisions) Act, 2002 (Act 55 of 2002). Section 147 reads as under: "147. Offences 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." Thus, in the post 6th February 2003 period, the offence under the N.I. Act became compoundable.