NI Act 138 Compromise

Dear Saptarshi, 

In view of the judgemnt of the Hon'ble Supreme Court in the case of "C.C. Alavi Haji", if the accused deposits the amount of the Cheque within 15 days from the date of service of summons then it is a good defence and there would not be any possiblity of cost being imposed.

Appeal (crl.) 767 of 2007, C.C. ALAVI HAJI V/s. PALAPETTY MUHAMMED & ANR. DATE OF JUDGMENT: 18/05/2007, Supreme Court of India

please go through the following relevant paragraph -

"Any drawer who claims that he did not receive the notice sent by post, can, within 15 days of receipt of summons from the court in respect of the complaint under Section 138 of the Act, make payment of the cheque amount and submit to the Court that he had made payment within 15 days of receipt of summons (by receiving a copy of complaint with the summons) and, therefore, the complaint is liable to be rejected. A person who does not pay within 15 days of receipt of the summons from the Court along with the copy of the complaint under Section 138 of the Act, cannot obviously contend that there was no proper service of notice as required under Section 138, by ignoring statutory presumption to the contrary under Section 27 of the G.C. Act and Section 114 of the Evidence Act."

you can compromise at early stage no cost no interest is imposed. there after as per SC directions you have to deposit at various stages from 10% to 20% to legal help cell.

Now compromise can be recorded by the competant magistrate without leave of the court since the offence is compoundable by virtue of amendment in the year 2002.. if the complainant satisfies, both complainant and accused together move an application to compound the case. It is purely left the option of the complainant whether he intends to compromise or to continue the case.