Ghulam Mohammad Wani vs Ayaz Ahmad Wani

The present revision petition was registered pursuant to the directions of the court issued on 17th March 2021 when the order dated 19th June 2017 was brought to the notice of the Court. Perusal of the order reveals that both the complainant as well as the accused had produced one compromise before the Court with regard to the settlement of the complaint filed under Section 138 of the Negotiable Instrument Act. Further the contents of the compromise were read over to both the parties by the learned Magistrate and both the parties admitted the said compromise to be true and correct and in support thereof their respective statements were also recorded by the Court. The accused had also annexed an undertaking along with the application in which it was stated that in case the accused could not pay the settled amount as per the compromise then in that eventuality the accused would pay double of that amount. The learned Magistrate consigned the complaint to the records

Heard Mr. N. H. Shah, learned senior counsel who has argued that once the matter was settled the court has not other option but to consign the complaint to the records.

Per contra, Mr. Mir Suhail submits that the court was required to dispose of the complaint in terms of the said settlement but the Court has consigned the complaint to the records without any jurisdiction.

Heard and perused.

This is an admitted fact that the partiers have entered into compromise with regard to the payment of the settled amount within the prescribed period. However, instead of disposing of the complaint in terms of the compromise, learned Magistrate has consigned the complaint to the records. Needless to say that learned Magistrate has only three options available whenever any complaint including the complaint under Section 138 of the Negotiable Instrument Act is filed:-

a) The Magistrate may convict the accused.

b) The Magistrate may acquit the accused.

c) In the event, the offences are compoundable then the court may compound the offences.

06.So far as the instant complaint is concerned, it is during the pendency of the complaint that the parties have entered into compromise and in that eventuality the learned Magistrate was under an obligation to dispose of the complaint in terms of the settlement and the learned Magistrate should have ordered the payment as stipulated in the agreement within the period prescribed in the agreement.

07.Having not done so and rather consigning the complaint to the records is illegal and arbitrary act on the part of the learned Magistrate. In view of this, the order dated 19th June 2017 is set as aide and the matter is remanded back to the learned Magistrate for fresh disposal under law.

08.The petition is disposed of as above.