After Obtaining Acquittal By Recording Compromise, Accused Not Adhering To Terms Of Settlement: Karnataka HC Restores Cheque Bounce Case
The Karnataka High Court observed that in cases where the accused who is convicted offers himself for settlement of the dispute and the judgment and conviction is set aside on account of such compromise, the Courts must direct that deviation from the terms of the compromise will result in the restoration of the criminal proceedings.
In that context, the Bench of Justice M Nagaprasanna observed that, "Whenever a Court, particularly in cases where the accused who is convicted offers himself for settlement of the dispute and the judgment and conviction is set aside on account of such compromise, those Courts shall make it mandatory to observe that the deviation of terms of the compromise will automatically efface of the compromise and the effect of it will be restoration of proceedings on the original side, in the manner known to law, failing which, the accused who get away with conviction on compromise like in the case at hand, take advantage of the laborious rigmarole of procedure of getting the compromise decree executed and bring about a situation as is found in the case at hand."
Senior Advocate PP Hedge appeared for the petitioner, while HCGP KP Yashodha appeared for the respondents.
In this case, the petition was filed urging the court to hasten the petitioner's hearing on his application and to reinstate the order of conviction against the accused, who represented M/s R.B.Green Field Agro Infra Pvt Ltd.
The petitioner had initiated proceedings under Section 138 of the Act, resulting in the accused's conviction by the Trial Court. During the appeal process, a joint memo for settlement was submitted, leading to the matter being referred to a Lok Adalat. In the Lok Adalat, the conviction order was annulled, and the case was closed due to a settlement. The accused committed to paying Rs.29,00,000 in installments, and failure to do so granted the petitioner the right to recover Rs.30,00,000 with 12% interest.
When the accused defaulted on payments, the petitioner filed an execution petition in 2017. In 2023, a writ petition was filed, six years after the execution case, citing a lack of progress.
The High Court observed that the very reference of the case to the Lok Adalat was erroneous, as there was nothing recorded by the concerned Court that the accused had deposited 20% fine amount as a condition precedent for referring the matter to the Lok Adalat.
Subsequently, it was observed that, "The accused, despite suffering an order of conviction, is dodging the clutches of law for the last 6 years, taking advantage of the compromise. Therefore, on the aforesaid ground of fraud as aforesaid being played by the respondent/accused, the proceedings before the Court of Sessions requires to be restored, failing which, the petitioner/victim would be put to insurmountable injustice."
In light of the same, the order passed by the Lok Adalat was quashed and the proceedings before the Sessions Court were restored.
Appearances:
Petitioner: Senior Advocate PP Hedge and Counsel Sharadi S Shetty
Respondents: HCGP KP Yashodha
Cause Title: Hemachandra M Kuppalli vs M/s RB Green Field & Ors.
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