(Prayer in Crl.R.C.No.997 of 2019: Criminal Revision Cases are filed under Sections 397(1) and 401 of Code of Criminal Procedure, to set aside the judgment dated 01.11.2018 passed by the learned II Additional District and Sessions Judges, Erode in Crl.A.No.184 of 2018 confirming the conviction and sentence of one year Simple Imprisonment and fine of Rs.5,000/- in default to undergo two months Simple Imprisonment imposed by the learned Judicial Magistrate, Fast Track Court-II, Erode by judgment dated 22.05.2018 in S.T.C.No.459 of 2016.

In Crl.R.C.No.998 of 2019: Criminal Revision Cases are filed under Sections 397(1) and 401 of Code of Criminal Procedure, to set aside the judgment dated 01.11.2018 passed by the learned II Additional District and Sessions Judges, Erode in Crl.A.No.187 of 2018 confirming the conviction and sentence of one year Simple Imprisonment and fine of Rs.5,000/- in default to undergo two months Simple Imprisonment imposed by the learned Judicial Magistrate, Fast Track Court-II, Erode by judgment dated 22.05.2018 in S.T.C.No.462 of 2016.

In Crl.R.C.No.999 of 2019: Criminal Revision Cases are filed under Sections 397(1) and 401 of Code of Criminal Procedure, to set aside the judgment dated 01.11.2018 passed by the learned II Additional District and Sessions Judges, Erode in Crl.A.No.186 of 2018 confirming the conviction and sentence of one year Simple Imprisonment and fine of Rs.5,000/- in default to undergo two months Simple Imprisonment imposed by the learned Judicial Magistrate, Fast Track Court-II, Erode by judgment dated 22.05.2018 in S.T.C.No.461 of 2016.

In Crl.R.C.No.1000 of 2019: Criminal Revision Cases are filed under Sections 397(1) and 401 of Code of Criminal Procedure, to set aside the judgment dated 01.11.2018 passed by the learned II Additional District and Sessions Judges, Erode in Crl.A.No.185 of 2018 confirming the conviction and sentence of one year Simple Imprisonment and fine of Rs.5,000/- in default to undergo two months Simple Imprisonment imposed by the learned Judicial Magistrate, Fast Track Court-II, Erode by judgment dated 22.05.2018 in S.T.C.No.460 of 2016.)

For the Petitioner: L. Mouli, Advocate. For the Respondent: V. Meenakshisundaram, Advocate.

Common Order:

1. The petitioner was convicted by judgment dated 22.05.2018 by the learned Judicial Magistrate, Fast Track Court-II (Magisterial Level), Erode (trial Court) in S.T.C.Nos.459, 462, 461 & 460 of 2016 for offence under Section 138 of Negotiable Instruments Act, 1881 and sentenced to undergo one year Simple Imprisonment and to pay a fine of Rs.5,000/- in default to undergo Simple Imprisonment for two months. Challenging the same, the petitioner preferred an appeal before the learned II Additional Sessions Judge, Erode (lower appellate Court) in Crl.A.Nos.184, 187, 186 & 185 of 2018 and the same was dismissed by judgment dated 01.11.2018 confirming the conviction of the trial Court. Aggrieved over the same, the present Criminal Revision Cases are filed.

2. Gist of the case in S.T.C.No.459 of 2016 is that the respondent/complainant and the petitioner/accused are known to each other for several years. The respondent was doing business of manufacturing Nut Plates in the name of M/s.Chandra Traders and the petitioner/accused was doing same business in the name of M/s.Sri Areca Nut Plate Industries. In the month of August 2013, the petitioner approached the respondent to support in all the fields like funding, supply of machineries and supply of raw materials and the petitioner induced the respondent and offered him to pay 30% of profit amount and also agreed to repay the loan amount with interest at the rate of 18% per annum. Believing the same, the respondent supplied nut plates manufacturing machines and supplied raw materials to the worth of Rs.7,00,000/- to the petitioner. The petitioner also borrowed money from the respondent in the years 2013 & 2014 to the tune of Rs.6,53,000/-. Thereafter, the petitioner failed to pay any percentage of profit amount to the respondent and also dragged to repay the loan amount borrowed. After negotiation, the respondent has agreed to receive a sum of Rs.12,00,000/- from the petitioner as full and final settlement and in discharge of the same, the petitioner issued eight cheques for Rs.1,00,000/- each and two cheques for Rs.2,00,000/- each (totally Rs.12,00,000/-) drawn on Kaveri Grameena Bank, N.Kotte, Gubbi Taluk, Tumkur, in favour of the respondent. When the respondent presented the above said cheques for encashment in State Bank of Mysore, Erode, the same got dishonoured on 24.06.2015 for the reason “Funds Insufficient” which was informed to the respondent on 02.07.2015. The cheque pertaining to this case is cheque No.065597 for Rs.1,00,000/- dated 20.05.2015. Thereafter, the respondent issued a legal notice to the petitioner on 08.07.2015 to settle the entire cheque amount within 15 days. But the petitioner neither made any reply to the notice nor returned the cheque amount. Hence, the complaint under Section 138 of Negotiable Instruments Act, 1881 was filed.

3. Gist of the case in S.T.C.No.462 of 2016 is that the respondent/complainant and the petitioner/accused are known to each other for several years. The respondent was doing business of manufacturing Nut Plates in the name of M/s.Chandra Traders and the petitioner/accused was doing same business in the name of M/s.Sri Areca Nut Plate Industries. In the month of August 2013, the petitioner approached the respondent to support in all the fields like funding, supply of machineries and supply of raw materials and the petitioner induced the respondent and offered him to pay 30% of profit amount and also agreed to repay the loan amount with interest at the rate of 18% per annum. Believing the same, the respondent supplied nut plates manufacturing machines and supplied raw materials to the worth of Rs.7,00,000/- to the petitioner. The petitioner also borrowed money from the respondent in the years 2013 & 2014 to the tune of Rs.6,53,000/-. Thereafter, the petitioner failed to pay any percentage of profit amount to the respondent and also dragged to repay the loan amount borrowed. After negotiation, the respondent has agreed to receive a sum of Rs.12,00,000/- from the petitioner as full and final settlement and in discharge of the same, the petitioner issued eight cheques for Rs.1,00,000/- each and two cheques for Rs.2,00,000/- each (totally Rs.12,00,000/-) drawn on Kaveri Grameena Bank, N.Kotte, Gubbi Taluk, Tumkur, in favour of the respondent. When the respondent presented the above said cheques for encashment in State Bank of Mysore, Erode, the same got dishonoured on 24.06.2015 for the reason “Funds Insufficient” which was informed to the respondent on 02.07.2015. The cheque pertaining to this case is cheque No.065593 for Rs.1,00,000/- dated 20.05.2015. Thereafter, the respondent issued a legal notice to the petitioner on 06.07.2015 to settle the entire cheque amount within 15 days. But the petitioner neither made any reply to the notice nor returned the cheque amount. Hence, the complaint under Section 138 of Negotiable Instruments Act, 1881 was filed.

4. Gist of the case in S.T.C.No.461 of 2016 is that the respondent/complainant and the petitioner/accused are known to each other for several years. The respondent was doing business of manufacturing Nut Plates in the name of M/s.Chandra Traders and the petitioner/accused was doing same business in the name of M/s.Sri Areca Nut Plate Industries. In the month of August 2013, the petitioner approached the respondent to support in all the fields like funding, supply of machineries and supply of raw materials and the petitioner induced the respondent and offered him to pay 30% of profit amount and also agreed to repay the loan amount with interest at the rate of 18% per annum. Believing the same, the respondent supplied nut plates manufacturing machines and supplied raw materials to the worth of Rs.7,00,000/- to the petitioner. The petitioner also borrowed money from the respondent in the years 2013 & 2014 to the tune of Rs.6,53,000/-. Thereafter, the petitioner failed to pay any percentage of profit amount to the respondent and also dragged to repay the loan amount borrowed. After negotiation, the respondent has agreed to receive a sum of Rs.12,00,000/- from the petitioner as full and final settlement and in discharge of the same, the petitioner issued eight cheques for Rs.1,00,000/- each and two cheques for Rs.2,00,000/- each (totally Rs.12,00,000/-) drawn on Kaveri Grameena Bank, N.Kotte, Gubbi Taluk, Tumkur, in favour of the respondent. When the respondent presented the above said cheques for encashment in State Bank of Mysore, Erode, the same got dishonoured on 24.06.2015 for the reason “Funds Insufficient” which was informed to the respondent on 02.07.2015. The cheque pertaining to this case is cheque No.065596 for Rs.1,00,000/- dated 20.04.2015. Thereafter, the respondent issued a legal notice to the petitioner on 07.07.2015 to settle the entire cheque amount within 15 days. But the petitioner neither made any reply to the notice nor returned the cheque amount. Hence, the complaint under Section 138 of Negotiable Instruments Act, 1881 was filed.

5. Gist of the case in S.T.C.No.460 of 2016 is that the respondent/complainant and the petitioner/accused are known to each other for several years. The respondent was doing business of manufacturing Nut Plates in the name of M/s.Chandra Traders and the petitioner/accused was doing same business in the name of M/s.Sri Areca Nut Plate Industries. In the month of August 2013, the petitioner approached the respondent to support in all the fields like funding, supply of machineries and supply of raw materials and the petitioner induced the respondent and offered him to pay 30% of profit amount and also agreed to repay the loan amount with interest at the rate of 18% per annum. Believing the same, the respondent supplied nut plates manufacturing machines and supplied raw materials to the worth of Rs.7,00,000/- to the petitioner. The petitioner also borrowed money from the respondent in the years 2013 & 2014 to the tune of Rs.6,53,000/-. Thereafter, the petitioner failed to pay any percentage of profit amount to the respondent and also dragged to repay the loan amount borrowed. After negotiation, the respondent has agreed to receive a sum of Rs.12,00,000/- from the petitioner as full and final settlement and in discharge of the same, the petitioner issued eight cheques for Rs.1,00,000/- each and two cheques for Rs.2,00,000/- each (totally Rs.12,00,000/-) drawn on Kaveri Grameena Bank, N.Kotte, Gubbi Taluk, Tumkur, in favour of the respondent. When the respondent presented the above said cheques for encashment in State Bank of Mysore, Erode, the same got dishonoured on 24.06.2015 for the reason “Funds Insufficient” which was informed to the respondent on 02.07.2015. The cheque pertaining to this case is cheque No.065598 for Rs.1,00,000/- dated 20.06.2015. Thereafter, the respondent issued a legal notice to the petitioner on 09.07.2015 to settle the entire cheque amount within 15 days. But the petitioner neither made any reply to the notice nor returned the cheque amount. Hence, the complaint under Section 138 of Negotiable Instruments Act, 1881 was filed.

6. This Court by orders dated 26.09.2025 & 10.10.2025 had passed the following order:

                   Order dated 26.09.2025 :

                   “The Criminal Revision Petitions challenges the conviction of the petitioner for the offence under Section 138 of the Negotiable Instruments Act and sentence imposed on the petitioner to undergo simple imprisonment for one year and fine amount of Rs.5,000/-, in default to undergo simple imprisonment for a further period of two months.

                   2.The petitioner/accused was prosecuted by the respondent for offence under Section 138 of the Negotiable Instruments Act in S.T.C.Nos.459, 462, 461 and 460 of 2016. The trial Court, by the judgment dated 22.05.2018, convicted the petitioner and sentenced him to undergo one year simple imprisonment and to pay a fine of Rs.5,000/-. Aggrieved against the same, the petitioner preferred an appeal in Crl.A.No.184, 187, 186 and 185 of 2018 respectively before the learned II Additional District and Sessions Judge, Erode. The learned Sessions Judge, by the judgment dated 01.11.2018, dismissed the appeals confirming the conviction and sentence passed by the trial Court, against which, the present revisions.

                   3.Today, a joint memo filed by both parties, dated 18.08.2025 is taken on file. Both the petitioner and the respondent have signed the joint memo through their respective counsel. The learned counsel for the petitioner also produced the receipt and submitted that the cheque amounts of Rs.1,00,000/- each, in total Rs.4,00,000/- for all four cases, had been paid through bank account. In addition, an amount of Rs.1,50,000/- above the cheque amounts has been paid in cash.

                   4.Both parties have agreed to give quietest to the issue, and the petitioner/accused is ready to compound the complaint. The respondent/complainant has also confirms the same.

                   5.The plea of the petitioner / accused is that, at the time of filing the appeal, the petitioner had deposited Rs.50,000/- each to the credit of S.T.C.Nos. 459, 462, 461 and 460 of 2016 in total Rs.2 lakhs before the Fast Track Court No.II (Magisterial Level), Erode and the respondent has no objection for the petitioner to withdraw the said amount.

                   6.Both the learned counsel for the petitioner and the respondent are directed to file a petition under Section 147 of the Negotiable Instruments Act for compounding the offence. The respondent/complainant and the petitioner are permitted to appear through virtual mode on the next hearing date, i.e., on 10.10.2025.

                   7.Post the matter on 10.10.2025.”

                   Order dated 10.10.2025 :

                   “Today, the petitioner/accused Nangaraja Gupta appeared through video conference along with his Advocate, Mr.P.Vasudeva. The petitioner's identity is not disputed.

                   2.Today, compounding petition filed in all revision cases.

                   3.The learned counsel for the respondent/complainant seeks small accommodation for the appearance of the respondent.

                   4.Post on 14.10.2025 for the appearance of the respondent in person or through virtual mode.”

7. Today, the learned counsel for the petitioner and learned counsel for the respondent reiterated the order of this Court dated 26.09.2025 and confirmed the settlement arrived between the parties and the receipt of Rs.5,50,000/- as full and final settlement by the respondent. Today, the respondent appeared before this Court in person and reaffirmed the receipt of Rs.4,00,000/- through bank account and Rs.1,50,000/- by way of cash as full and final settlement.

8. The respondent/complainant has filed compounding petitions in Crl.M.P.Nos.18901, 18904, 18907 & 18908 of 2025 in Crl.R.C.Nos.997, 998, 999 & 1000 of 2019 invoking Section 147 of the Negotiable Instruments Act, 1881 to compound the offence and the same are ordered.

9. In view of the above development and in the interest of both the parties not to keep these proceedings pending since it will affect their future life, this Court accepts the compromise entered between them.

10. The petitioner already deposited a sum of Rs.50,000/- each (In total Rs.2,00,000/-) to the credit of S.T.C.Nos.459, 462, 461 & 460 of 2016 on the file of the Metropolitan Magistrate, Fast Track Court-II (Magisterial Level), Erode at the time of filing appeals before the lower appellate Court. The trial Court is directed to return the deposited amount of Rs.2,00,000/- lying in S.T.C.Nos.459, 462, 461 & 460 of 2016 to the respondent dispensing with notice to the petitioner. The respondent shall file a petition/memo before the trial Court for return of such amount.

11. In the result, the case between the petitioner and the respondent is compounded. Hence, the judgment, dated 22.05.2018 in S.T.C.Nos.459, 462, 461 & 460 of 2016 passed by the learned Metropolitan Magistrate, Fast Track Court-II (Magisterial Level), Erode and the judgment, dated 01.11.2018 passed by the learned II Additional Sessions Judge, Erode in Crl.A.Nos.184, 187, 186 & 185 of 2018 are set aside and all the revisions are, accordingly, allowed. The petitioner is acquitted of all charges levelled against them.