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Head Note

Criminal Laws  - Judgment

Judgment - A Judgment is always an authority for what is decides - A judgment cannot be read as a statute - It has to be read in the context of the facts discussed in it.

The Code of Criminal Procedure, 1973  - Section 320 , The Negotiable Instruments Act, 1881  - Section 147 , Section 138

Companies Act, 1956 - Section 391 - Dishonour of cheques issued by companies in payment of debt - Company court sanctioned a scheme of compromise under Section 391 of Companies Act between company and its creditors - As a result of sanction of a scheme under Section 391 of the Companies Act there is no automatic compounding of offences under Section 138 of the Negotiable Instruments Act even without the consent of the complainant - Compounding can be allowed subject to the condition that the accused will be required to pay 10% of the cheque amount to be deposited as a condition for compounding with the Legal Services Authority.

The Code of Criminal Procedure, 1973  - Section 4 (2) , Section 320 , The Negotiable Instruments Act, 1881  - Section 147 , Section 138

Compounding of offence under Negotiable Instruments Act - Offence under Section 138 of Negotiable Instruments Act has been made compoundable under Section 147 of Negotiable Instruments Act, but no special procedure has been prescribed under Negotiable Instruments Act relating to compounding of offence - The basic procedure of compounding an offence laid down in Section 320 of Criminal Procedure Code will apply to compounding of an offence under Negotiable Instruments Act. AIR 1981 Supreme Court 1068, relied.

Non-obstante clause in a statute - Non-obstante clause has a contextual and limited application - The impact of non obstante clause must be kept measured by the legislative policy and it has to be limited to the extent it is intended by the Parliament and not beyond that. 2006(10) SCC 452, 1971(1) SCC 85 relied.

Topic(s)-

Important Decision(s)- 

• The basic procedure of compounding an offence laid down in Sec. 320 of CrPC will apply to compounding of an offence under NI Act.
• No automatic compounding of offences under S. 138 of the NI Act even without the consent of the complainant.