Madras High Court
CRL RC/753/2026 of Ravichandran Vs G.K.Venkatesan on 21 September 2026
IN THE HIGH COURT OF JUDICATURE AT MADRAS
RESERVED ON : 15-09-2026
PRONOUNCED ON : 21-09-2026
CORAM
THE HON'BLE MR.JUSTICE SUNDER MOHAN
CRL RC No. 753 of 2026
CNR:{HCMA010668322026}
AND CRL MP Nos. 5908 & 5911 of 2026
Ravichandran
S/o Jayaraman,
No.18, Pasi Kadai Street,
Mayiladuthurai, Koranad.
..Petitioner(s)
Vs
G.K.Venkatesan
S/o Krishnamoorthy,
No.120, Canteen Street,
Puducherry.
..Respondent(s)
Criminal Revision Case, filed under Sections 438 and 442 of BNSS, to call for the records pertaining to the order dated 13-03-2026 passed in Cr.MP.No.4 of 2026 in STC.No.2530 of 2021 on the file of the learned Judge, Fast Track Court at Magistrate Level (NI act), Puducherry and examine the legality, propriety, and correctness of the same and to set aside the Impugned Order dismissing the compounding application.
For Petitioner(s):
Mr.M.V.Ramachandra Murthy
For Respondent(s):
Mr.R.Praveen Kumar
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Order
The criminal revision has been filed challenging the order dated 13.03.2026 passed in M.P.No.4 of 2026 in S.T.C.No.2530 of 2021 on the file of the learned Judicial Magistrate, Fast Track Court at Magistrate Level [NI Act], Puducherry, by which the application for compounding the offence filed by the petitioner/ accused was dismissed.
2. It is the case of the respondent that the petitioner/accused had borrowed a sum of Rs.10,00,000/- on 16.09.2019 repayable with interest at the rate of Rs.25,000/- per month; that towards discharge of the said liability he issued a cheque dated 26.02.2021 for a sum of Rs.10,00,000/-; that when the said cheque was presented for collection, it was returned for the reason, ‘Funds Insufficient’; that despite statutory notice, he did not make payment; and that he is liable for the offence under Section 138 of the NI Act.
3. Pending trial, the petitioner had filed a petition in MP.No.4 of 2026, under Section 147 of the Negotiable Instruments Act, 1881(hereinafter referred to as ’the Act’) r/w Section 320 Cr.P.C seeking to compound the offence by depositing the cheque amount. The same was dismissed by the trial Court because the respondent/complainant did not give consent to compound the offence. Hence, the revision.
4. Heard the learned counsel for both the sides.
5. The learned counsel for petitioner/accused submitted that the petitioner had already paid a sum of Rs.3,08,000/- prior to the filing of the complaint and another sum of Rs.2,00,000 pending trial to the respondent; that he had deposited a demand draft bearing No.230631 dated 12.03.2026, for a sum of Rs.5,00,000/- drawn in the name of the respondent before the trial Court on 16.03.2026; and that since the entire cheque amount has now been paid, the petitioner is entitled to compound the offence even without the consent of the respondent. In support of his contentions, the petitioner had relied upon the decision of the Hon’ble Supreme Court in M/s.Meters and Instruments Private Limited &Anr. v Kanchan Mehta reported in 2018
(1) SCC 560
6. The learned counsel for the respondent/complainant submitted that the respondent cannot be compelled to give consent to compound the offence and that mere repayment of the cheque amount would not absolve the petitioner from his criminal liability and would state that the petitioner is due to pay interest. Hence, he, prayed for dismissal of the revision.
7. It is not in dispute that the petitioner had paid Rs.3,08,000/- prior to the filing of the complaint towards interest and had paid another sum of Rs.2,00,000/- pending trial. The petitioner had expressed his willingness to pay the cheque amount and had taken a demand draft for Rs.5,00,000/- in the name of the respondent and it appears that he has deposited the same before the trial Court.
8. It is well settled that the object of the Section 138 of the Act is to compensate the complainant. There cannot be any doubt that the consent of the respondent is required for compounding. In this case, the respondent is required to be compensated adequately, taking into consideration the fact that the amount is due to him from 2021. This Court is of the view that if a sum of Rs.3,50,000/- is directed to be paid by the petitioner in addition to the amount already paid or deposited, the respondent would be compensated adequately and the proceedings can be dropped. Hence, this
Court is inclined to set aside the impugned order and release the accused/petitioner.
9. Accordingly, the order dated 13.03.2026 passed in M.P.No.4 of 2026 in S.T.C.No.2530 of 2021 on the file of the learned Judicial Magistrate, Fast Track Court at Magistrate Level [NI Act], Puducherry, is set aside. This Court is of the view that the accused/petitioner can be released in STC No.2530 of 2021, pending before the trial Court, by invoking the proviso to Section 274 of the BNSS, subject to the condition that the petitioner pays a sum of Rs.3,50,000/, to the respondent in addition to the amounts already paid or deposited within a period of three weeks from the date of receipt of a copy of this order. If the petitioner fails to comply with the above condition, the trial Court shall proceed with the trial.
10. It is also made clear that if the demand draft that has been deposited by the petitioner before the trial Court has become invalid for any reason, the petitioner shall furnish a fresh demand draft in favour of the respondent.
11. The Criminal Revision is disposed of, accordingly. Consequently, the connected criminal miscellaneous petitions are closed. 21-09-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No ars To The Judicial Magistrate, Fast Track Court at Magistrate Level [NI Act], Puducherry.
SUNDER MOHAN J. ars Pre-delivery order in CRL RC No. 753 of 2026 and CRL MP Nos. 5908 & 5911 of 2026 21-09-2026