Mrs. Manisha Deepak Naik, Presently in Sada Jail, Vasco, Through her Next Friend, Mr. Deepak Naik vs The Lokmanya Co-operative Credit Society Limited

A. P. Lavande, J.—Applicant and respondent no.1 have filed an application for compounding of offence. Petitioner was convicted by the learned Judicial Magistrate First Class, "A" Court, Bicholim in Criminal Case No. 142/OA/139/2007/A for the offence punishable u/s 138 of the Negotiable Instruments Act and sentenced to undergo simple imprisonment of 30 days and to pay fine amount of Rs.3,34,790/-by way of compensation to respondent no.1/Complainant. Learned Assistant Session Judge, North Goa, Panaji, by Judgment and Order dated 12.5.2011 passed in Criminal Appeal no. 100/2010 maintained the sentenced of imprisonment and reduced the compensation to Rs.1,49,790/-.In view of the application filed duly signed by the parties and their Advocates, applicant and respondent no.1 are permitted to compound the offence for which applicant has been convicted. Consequently the judgments and orders passed by both the Courts below are quashed and set aside and applicant/accused is acquitted of the offence punishable u/s 138 of the Negotiable Instruments Act, 1881.

Application on behalf of the applicant for leniency in deposit of the costs has been filed on the ground that applicant had obtained a loan of Rs.3,00,000/-from respondent no.1 for business purpose i.e for setting up of an assembly unit of Linc Pens, however company Linc Pen closed down their manufacturing unit in Goa and shifted to Calcutta in the year 2006 on account of which applicant had to close down her assembly unit in the year 2006 and consequently applicant suffered huge losses on account of closure of assembly unit. It is further the case of the applicant that applicant has paid the cheque amount to the respondent no.1 by borrowing the amount from her friends and relatives. The applicant has therefore prayed that leniency be shown in deposit of costs.

In terms of the judgment of the Apex Court in the case of Damodar S. Prabhu Vs. Sayed Babalal H., reported in 2010 ALL MR(CRI) 1967(S.C.), the applicant is liable to pay 15% of the cheque amount by way of costs, however the Apex Court has held that the Court can reduce the costs considering the specific facts and circumstances of a case while recording the reasons for such reduction.

Considering the reasons given by the applicant, the costs payable by the applicant are reduced to Rs.30,000/-( Rupees thirty thousand only) and the application for compounding of offence punishable u/s 138 of the Negotiable Instruments Act, 1881 is allowed subject to the applicant depositing costs of Rs.30,000/-in favour of the Goa State Legal Services Authority, within a period of 2 weeks from today. The Revision Application stands disposed of in the aforesaid terms.