Cambium Boitech's petitions prompt reassessment of acquittal applications, emphasizing Supreme Court's revisited compounding directives.
In a significant ruling, the Bombay High Court has set aside the orders of the Additional Sessions Judge, Niphad, which had rejected the acquittal applications filed by Cambium Boitech Private Ltd in cheque dishonour cases. The court directed the appellate court to reconsider these applications in light of the Supreme Court's revisited guidelines on compounding offences under Section 138 of the Negotiable Instruments Act (NI Act).
The judgment, delivered by Mr. Madhav J. Jamdar, J., emphasized the Supreme Court’s guidelines as stated in the landmark cases of Sanjabij Tari v. Kishore S. Borcar and Damodar S. Prabhu v. Sayed Babalal H. These guidelines dictate the conditions under which offences can be compounded and highlight the need for imposing costs to deter delayed settlements. Specifically, the guidelines stipulate that compounding can be permitted at the appellate stage on payment of 7.5% of the cheque amount as costs.
Cambium Boitech, represented by Mr. Narayan Gopinath Rokade, had previously deposited Rs. 1,60,000 in each case and expressed willingness to deposit an additional Rs. 30,000. The court has directed the appellate court to consider these deposits while reassessing the acquittal applications. Moreover, the court suggested that the appellate court consider extending benefits under the Probation of Offenders Act, 1958, as part of alternative sentencing.
The High Court’s directive underscores a shift towards a more flexible approach in handling cheque dishonour cases, balancing the interests of justice and the need for efficient resolution of cases. This ruling could set a precedent for similar cases, offering a path to resolution through revised compounding guidelines.
Bottom line:-
Negotiable Instruments Act - Guidelines for compounding offences under Section 138 revisited and clarified in light of Supreme Court precedents. Appellate Court directed to reconsider applications for acquittal under Section 255(2), 255(3) Cr.P.C. or Section 278 of Bharatiya Nagarik Suraksha Sanhita, 2023, with the possibility of extending the benefit of the Probation of Offenders Act, 1958.
Statutory provision(s): Negotiable Instruments Act, 1881 - Section 138, Bharatiya Nagarik Suraksha Sanhita, 2023 - Section 278, Criminal Procedure Code, 1973 - Sections 255(2), 255(3), Probation of Offenders Act, 1958.
Cambium Boitech Private Ltd v. State of Maharashtra, (Bombay) : Law Finder Doc id # 2928746
