A.S. PHARMA PVT. LTD. versus NAYATI MEDICAL PVT. LTD. & ORS.

A.S. PHARMA PVT. LTD. versus NAYATI MEDICAL PVT. LTD. & ORS.

The High Court erred in invoking Section 482 Cr.P.C. together with Section 147 N.I. Act to compound the offence under Section 138 N.I. Act without the consent of the complainant; compounding under Section 147 requires the complainant's consent and Section 482 cannot be used to circumvent that statutory requirement. However, in the specific factual matrix where the accused had deposited the amount (Rs.6,50,000) with interest and an additional sum (Rs.1,00,000) and expressed readiness to settle, the Supreme Court invoked its power under Article 142 to quash Complaint Case No.5564 of 2022 and all proceedings therefrom and permitted withdrawal of the deposited amounts to do complete justice...

Parties
Complainant Appellant: A.S. Pharma Pvt. Ltd.; Respondents Accused: Nayati Medical Pvt. Ltd. & Ors.
Jurisdiction
India
Judgment Date
23 July 2024
Procedural Posture
Criminal Appeal / Appeal Against High Court Judgment (criminal Miscellaneous Case No. 970 of 2023); Disposed by Supreme Court Order Dated 23.07.2024
Outcome
Appeals disposed of. Impugned High Court judgment quashed and set aside to the extent it compounded the offence under Section 138 N.I. Act by invoking Section 482 Cr.P.C. and Section 147 N.I. Act; Complaint Case No.5564 of 2022 and all proceedings therefrom quashed under Article 142; appellant entitled to withdraw...
Legal Topics
Section 482 Cr.p.c., Section 147 N.i. Act, 1881, Section 138 N.i. Act, Article 142 Constitution of India, Compounding of Offence, Consent of Complainant, Quashing of Proceedings
Criminal Procedure Negotiable Instruments Act Constitutional Law Section 482 Cr.p.c. Section 147 N.i. Act, 1881 Section 138 N.i. Act, 1881 Article 142 Constitution of India Compounding of Offence +2 more

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Parties

A.S. Pharma Pvt. Ltd.

Complainant Appellant

Nayati Medical Pvt. Ltd. & Ors.

Respondents Accused

Procedural Posture

Criminal Appeal / Appeal Against High Court Judgment (criminal Miscellaneous Case No. 970 of 2023); Disposed by Supreme Court Order Dated 23.07.2024

Legal Issues

  1. 1 Whether the High Court was justified in exercising its inherent power under Section 482 Cr.P.C. together with Section 147 N.I. Act to compound the offence under Section 138 N.I. Act despite non-consent of the complainant
  2. 2 Whether compounding under Section 147 N.I. Act can be effected without the consent of the complainant
  3. 3 Whether the Supreme Court’s exercise of Article 142 in Raj Reddy Kallem permits High Courts to quash or compound proceedings on similar lines

Ratio Decidendi

The High Court erred in invoking Section 482 Cr.P.C. together with Section 147 N.I. Act to compound the offence under Section 138 N.I. Act without the consent of the complainant; compounding under Section 147 requires the complainant's consent and Section 482 cannot be used to circumvent that statutory requirement. However, in the specific factual matrix where the accused had deposited the amount (Rs.6,50,000) with interest and an additional sum (Rs.1,00,000) and expressed readiness to settle, the Supreme Court invoked its power under Article 142 to quash Complaint Case No.5564 of 2022 and all proceedings therefrom and permitted withdrawal of the deposited amounts to do complete justice...

Court Disposition

Appeals disposed of. Impugned High Court judgment quashed and set aside to the extent it compounded the offence under Section 138 N.I. Act by invoking Section 482 Cr.P.C. and Section 147 N.I. Act; Complaint Case No.5564 of 2022 and all proceedings therefrom quashed under Article 142; appellant entitled to withdraw...

Orders

  • Impugned judgment of the High Court dated 13.12.2023 quashed and set aside to the extent it compounded the offence under Section 138 N.I. Act by invoking Section 482 Cr.P.C. and Section 147 N.I. Act.
  • Pursuant to Article 142, Constitution of India, Complaint Case No.5564 of 2022 and all proceedings emerging therefrom are quashed.