THE HON'BLE SRI JUSTICE GOPALA KRISHNA TAMADA CRIMINAL REVISION CASE NOs.31, 67, 84 & 85 OF 2004 COMMON ORDER: 1 Two private complaints were filed by the chit fund company by name Vipanchi Chit Fund Limited who is arrayed as first respondent in all these revisions stating that the petitioners issued some cheques each for an amount of Rs.20,000/- totaling to Rs.1,00,00/- and on presentation the said cheques were dishonoured with an endorsement “insufficiency of funds”. As the said bouncing of cheques attracts the provisions of Section 138 of Negotiable Instruments Act, the said chit fund company filed two private complaints against the petitioners for the offence punishable under section 138 of Negotiable Instruments Act and the same were numbered as C.C.No.684 and 685 of 1999 on the file of the Court of the XVII Metropolitan Magistrate, Hyderabad. After following the due procedure provided for under law, the learned Magistrate having tried the petitioners for the said offence, which was brought on record, found the petitioners guilty of the said offence and accordingly sentenced the first petitioner i.e. the company to pay a fine of Rs.5,000/- and the petitioners 2 and 3 are sentenced to undergo rigorous imprisonment for a period of six months and also to pay a fine of Rs.5,000/- in default of payment of fine they shall suffer simple imprisonment for a period of one month each in both the cases. Questioning the said judgment dated 28.02.2003 made in C.C.No.684 of 1999, the first petitioner –company preferred Criminal Appeals 136 and 137 of 2003 and the petitioners 2 and 3 preferred Criminal Appeals 138 and 139 of 2003 and the learned I Additional Metropolitan Sessions Judge, Hyderabad by his common judgment dated 31.12.2003, while concurring with the findings given by the trial court, dismissed the said appeals. Aggrieved by the said judgment, all these revisions are preferred. 2 The case of the complainant chit fund company is that the first petitioner / accused is a partnership firm of which petitioners / accused 2 and 3 are partners and they joined as chit members in chit series No.STH-1F for Rs.5 lakhs on 24.09.1997 payable @ Rs.20,000/- per month. The petitioners were successful bidders in the draw after foregoing an amount of Rs.1,50,000/- The petitioners received Rs.3,50,000/- from the complainant company and executed a memorandum of understanding on 14.05.1998 promising to repay the remaining instalments through post dated cheques. To discharge the liability, the petitioners have issued two cheques each for Rs.20,000/- which relate to C.C.No.685 of 1999 and three cheques each for Rs.20,000/- which relate to C.C.No.684 of 1999 in all five cheques totaling to Rs.1,00,000/-. As stated supra, when presented, the said cheques were dishonoured and hence the law was set into motion. 3 Heard. 4 These revisions were admitted on 21.01.2004 and 22.01.2004. During the pendency of these revisions, it appears, there was a settlement between the parties and accordingly they filed a compromise memo in this curt and as per the said compromise, the accused i.e. petitioners herein agreed to pay an amount of Rs.1,40,000/- towards full and final settlement and the same is accepted by the first respondent – chit fund company. 5 In the light of the said consensus arrived at between the parties and as the amount has also been paid by way of bankers cheques, and inasmuch as the offence punishable under section 138 of N.I. Act is compoundable, this court is of the view that the said offence can be compounded and the said sentence imposed by the courts below can be set aside. 6 Accordingly, all these revisions are allowed, the sentence imprisonment imposed by the courts below against the petitioners in all the cases for the offence punishable under section 138 of Negotiable Instruments Act is hereby set aside. -------------- 27.01.2011 Kvsn