IN THE SUPREME COURT OF INDIA

CRIMINAL APPELLATE 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.      ...Respondent(s)

O  R  D  E  R

Heard learned counsel for the parties.

Leave granted.

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.

....3/-

- 3 -

Accordingly, the appeals are allowed, impugned order passed by the High

Court is set aside and prosecution of the appellants is dropped.

......................J.       [B.N. AGRAWAL]

......................J.       [G.S. SINGHVI]

New Delhi, July 14, 2008.