M/S S & S
Industries & Enterprises Ltd & Ors Vs. M/S Fortress Financial Services
Ltd.  INSC 1115 (14 July 2008)
JURISDICTION CRIMINAL APPEAL NOS.1081-1083 OF 2008 (Arising out of S.L.P.
(Crl.) Nos.3865-3867 of 2007) M/s. S & S Industries and Enterprises Ltd.
and Ors. ...Appellant(s) Versus M/s. Fortress Financial Services Ltd.
O R D E R
Heard learned counsel
for the parties.
It appears that three
complaints filed under Section 138 of the Negotiable Instruments Act by the
respondent were dismissed for non-prosecution. Against the said order, when the
matter was taken to the High Court, by the impugned order, it set aside the
order of dismissal of complaint and remanded the matter to the Trial Court for
disposing of the complaints on merits. Against this order, present appeals by
special leave have been filed.
In the present case,
notice was issued to the complainant upon appellants' depositing a sum of
Rupees ten lakhs, which order has been already complied with, and the aforesaid
sum has been kept in fixed deposit. Learned counsel appearing on behalf of the
appellants stated that his clients are ready to pay further sum of Rupees three
lakhs by way of demand draft which he is having with him; as such, impugned
order be set aside and further proceeding in the complaint ....2/- -2- cases
may be dropped. Learned counsel appearing on behalf of the respondent-
complainant submitted that even if the statement made in the Memorandum of
Understanding is accepted to be true, his client had accepted to receive a sum
of Rupees thirteen lakhs in full and final settlement of the entire claim which
was in the month of July, 2007 and thereafter one more year has passed, but no
payment has been made; as such, he is entitled to be compensated by payment of
interest upon the aforesaid amount of Rupees thirteen lakhs for a period of one
year. In the facts and circumstances of the case, we are of the view that
complainant should be paid further sum of Rupees one lakh, i.e., in all Rupees
fourteen lakhs. Out of the aforesaid, a sum of Rupees ten lakhs has been
already deposited in this Court, which has been kept in fixed deposit. The
respondent shall be permitted to withdraw the same along with interest accrued thereon
from this Court without any delay. Learned counsel appearing on behalf of the
appellant stated that he may be permitted to deposit demand draft for Rupees
three lakhs in the Registry of this Court by tomorrow, i.e., 15th July, 2008.
Let it be so done. In that event, the respondent shall be entitled to withdraw
this sum of Rupees three lakhs as well. Learned counsel stated that his clients
undertake to pay balance sum of Rupees one lakh to the complainant by demand
draft drawn in its favour upon a local bank within one month from today.
The offence under
Section 138 of the Negotiable Instruments Act is compoundable.
In view of the facts
stated above, in our view, it would be just and expedient to permit the parties
to compound the offence.
Accordingly, the appeals are allowed, impugned order passed by the High Court
is set aside and prosecution of the appellants is dropped.
Delhi, July 14, 2008.