Court Has Discretion To Drop NI Act Proceedings Sans Complainant’s Consent If Accused Offers Fair Amount as Compensation: Allahabad HC

The Allahabad High Court has observed that a Magistrate can drop proceedings against an accused under the Negotiable Instruments Act if he offers a fair and acceptable amount, which, in the opinion of the court is appropriate for duly compensating the complainant. The bench of Justice Jyotsna Sharma observed thus while referring to the Supreme Court’s 2017 ruling in the case of M/s Meters and Instruments Private Limited and Another vs. Kanchan Mehta wherein the top Court had observed that an accused in a case under Section 138 of NI Act can be discharged even without the consent of the complainant if the Court is satisfied that the complainant has been duly compensated. Instead, widening the compensatory aspect of cases filed under Section 138 of the Negotiable Instrument Act, the Apex Court has carved out a window in the existing scheme of things saying that the case can be disposed of without obtaining direct consent of the complainant under certain circumstances. Court's order At the outset, the Court pursued the order of the Supreme Court to note that the Top Court has carved out a window in the existing scheme of things saying that the case can be disposed of without obtaining direct consent of the complainant under certain circumstances. The Court further added that the Court of Magistrate is very well empowered to apply its discretion in terms of provisions of Section 258 CrPC in such cases and that if it feels appropriate, it may drop the proceedings against the accused even if there is no direct consent of the complainant.