ORDER

1. The application seeking exemption from surrendering is allowed.

2. Leave granted.

3. The appellant herein has been convicted of the offence under Section 138 of the Negotiable Instruments Act, 1881, in relation to the cheque bearing No.086098 for a sum of Rs.4,31,000/-. She was sentenced to undergo six months of simple imprisonment and to pay a fine of Rs. 2,000/- with default stipulations by the Judicial Magistrate, Fast Track Court at Magisterial Level-II, Coimbatore in STC No. 104 of 2012 by the judgment and order dated 05.02.2014. The regular appeal filed by the appellant was dismissed by the III Additional Sessions Judge, Coimbatore on 04.08.2015 and then, the revision petition was also dismissed by the High Court by way of the impugned order dated 13.09.2021.

4. It has been pointed out that the appellant and the respondent have now settled the matter and have executed a deed of settlement, which has been placed before us with an application seeking permission to compound the offence. The said settlement deed reads as under: -

“SETTLEMENT AGREEMENT:

On this day 29TH OF MONTH JUNE, 2022, this agreement of Settlement is made at Coimbatore between (1) A.R. NAGARAJAN, SON OF LATE RAMASAMY, residing at DOOR NO.45-47, THIYAGARAYA NEW STREET NO.2, COIMBATORE, TAMIL NADU, hereafter called as “First Party”, (which expression shall unless it is repugnant to the context mean and include his legal representatives, executors, administrators and assigns), and;

(2) MARIYAMMA, WIFE OF LATE P. MAHARAJAN, doing business in the name and style of LUCKY LADIES DESIGNER, 32, HMPR STREET, KOTTAIMEDDU, COIMBATORE-1, TAMIL NADU, hereafter called as “Second party” (which expression shall unless it is repugnant to the context mean and include his legal representatives, executors, administrators and assigns), Hereinafter together referred to as THE PARTIES.

WHEREAS:

The First Party had initiated proceedings bearing C.C. No.13/2015, under Section 138 of the Negotiable Instruments Act, against the Second party before the Learned Judicial Magistrate, Fast Track Court at Magisterial Level I, Coimbatore and the same was ended in acquittal vide Judgement dated 17.02.2021. Against which, the first part has preferred appeal before the Honourable High Court of Judicature at Madras in Criminal Appeal No.572 of 2022, which is pending.

The First Party had also initiated another proceedings bearing STC No.104/2012, under Section 138 of the Negotiable Instruments Act, against the Second party before the Learned Judicial Magistrate, Fast Track Court at Magisterial Level II, Coimbatore.

The Learned Judicial Magistrate, Fast Track Court at Magisterial Level II, Coimbatore, had convicted the Second party under Section 138 of the Negotiable Instruments Act in STC No.104 of 2012 and had sentenced her to undergo Six Months imprisonment and imposed a fine of Rs.2000/-.

Subsequently, the Learned III Additional Sessions Judge, Coimbatore in CA No.25 of 2014 and thereafter, the Hon’ble High Court of Madras in Criminal Revision No.870 of 2015, had upheld the conviction of the present second party under Section 138 of the Negotiable Instruments Act.

Thereafter, the present second party had filed a Special Leave Petition bearing SLP (Crl.) No.18630 of 2022, before the Hon’ble Supreme Court of India and during the pendency of the said proceedings, the First Party and Second Party had entered into a Settlement / Compromise, and in order to end the dispute between the PARTIES, which is before the Hon’ble Supreme Court of India vide SLP (Crl.) No.18630 of 2022 and also before the Honourable High Court of Judicature at Madras in Criminal Appeal No.572 of 2022, the Parties are desirous of executing a deed of settlement on the following terms and conditions.

FIRST PARTY AND THE SECOND PARTY AGREES THE FOLLOWING TERMS AND CONDITIONS AND WILL BE BOUND BY SUCH TERMS AND CONDITIONS:

1.The First Party and the Second Party had agreed to settle their disputes between them at a final settlement of Rs.4,31,000/- (Rupees Four Lakh thirty one thousand only), considering the financial position of the Second party as the Second Party is a widow who does tailoring work for her bread and butter.

2.The First Party acknowledges and is aware of the financial status and considering the same and agrees to accept the final Settlement Amount of Rs.4,31,000/- (Rupees Four Lakh thirty one thousand only), from the Second party, for the purpose of ending all the disputes the between the parties.

3.The first Party agrees to accept the final settlement amount of Rs.4,31,000/- (Rupees Four Lakh thirty one thousand only) and he received the full and final settlement amount through following modes of payment.

a) The payment of Rs.1,00,000/- (Rupees One lakh only)by way of cash on 28.06.2022.

b) The balance payment of Rs.3,31,000/- (Rupees three lakh thirty one thousand only) through Demand Draft dated 29.06.2022 drawn on “The South Indian Bank Limited”, R.S.Puram Branch in Demand Draft bearing No.619601.

4.After the execution of the present Settlement Agreement, the First Party agreed to withdraw all the above mentioned proceedings pending before the Honourable High Court of Judicature at Madras and Honourable Supreme Court of India. The Second Party will immediately move an application for compounding in SLP(Crl.) Diary No.18630 of 2022 before the Hon’ble Supreme Court of India and the First Party agrees to enter appearance in the said proceeding and support the Application of Compounding to be filed by the Second Party. Also the First Party will immediately withdraw the proceedings pending the Honourable High Court of Judicature at Madras in Criminal Appeal No.572 of 2022 by recording this settlement.

5.The First Party will have no objection if the conviction of the Second Party is set aside by the Hon’ble Supreme Court of India in the proceedings arising out of SLP(Crl.) Diary No.18630 of 2022.

6.First Party and the Second Party have understood the terms and conditions of the Settlement Agreement and the contents of the same have been explained to them in Vernacular Language. The First Party and the Second Party have signed the present Settlement Agreement, without any force or coercion or fraud and the Parties have agreed that the PARTIES will agree before the Hon’ble Supreme Court of India in SLP (Crl.) Diary No.18360 of 2022 and Honourable High Court at Madras in Criminal Appeal No.572 of 2022 for passing an appropriate Orders based on the terms and conditions of the present Settlement Agreement. Agreed and signed on the above said date before the following witnesses by all the parties above named.

Sd/-                                                                                                               Sd/-

First Party                                                                                                      Second Party”

5. Learned counsel has appeared for the respondent and has also made submissions in conformity with the settlement deed aforesaid while accepting that the requisite payment has been received by the respondent and no further dispute survives between the parties.

6. Having regard to the circumstances of the case and the submissions as made, it does appear appropriate to accept the terms of settlement between the parties and allow the compounding of offence.

7. Ordered accordingly.

8. In view of the above, the impugned order dated 13.09.2021 in R.C.No.870 of 2015 as also the orders passed by the Appellate Court and the Trial Court are set aside.

9. The appeal stands disposed of accordingly.

10. All pending applications stand disposed of.

Order accordingly.

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