SUPREME COURT OF INDIA

Before:- D.M. Dharmadhikari and B.N. Srikrishna, JJ.

Criminal Appeal Nos. 222-23 of 2005 (Arising out of SLPs (Crl.) Nos. 702-03 of 2005). D/d. 4.2.2005.

Cochin Hotels Co. (P) Ltd. and others - Appellants

Versus

Kairali Granites and othres - Respondents

Criminal Procedure Code, Section 320 - Negotiable Instruments Act, Sections 138 and 147 - Compounding of offence - Accused convicted under Section 138 of Negotiable Instruments Act and sentenced to 3 months S.I. and fine of Rs. 5000/- - Parties entering into compromise - Section 147 of the Negotiable Instruments Act, as amended, makes the offence compoundable - Parties allowed to compound the offence - Sentence of imprisonment set aside while that of fine maintained.

[Paras 3 and 4]

ORDER

Leave granted.

2. Heard learned counsel for the parties.

3. The appellants have been convicted by all the three courts under Section 138 of the Negotiable Instruments Act, 1881 and sentenced to three months' simple imprisonment and Rs. 5000 as fine. The accused-appellants have surrendered and it is stated that the offence has been compounded by paying the entire dues to the complainant. An application jointly signed has also been filed seeking permission to compound the offence. Section 147 of the Negotiable Instruments Act, as amended, makes the offence compoundable and we find no ground to reject the prayer for compounding the offence.

4. In the circumstances, we allow these appeals and permit the compounding of offence by setting aside the sentence of imprisonment but in the circumstances we shall maintain the sentence of fine. The appeals are accordingly allowed.

5. As we have allowed the compounding of offence, the applicants shall be released forthwith.

Appeals allowed.