The court considered the satisfaction of the complainant with the amount received and the compromise reached between the parties as grounds to set aside the conviction and sentence under Section 138 of the Negotiable Instruments Act, 1881.

ORDER :

Leave granted.

2. This appeal by special leave is directed against the judgment dated 12th October, 2021 passed by the High Court of Punjab & Haryana at Chandigarh in C.R. No. 1159 of 2021 whereby High Court dismissed the criminal revision filed against the judgment and order of the trial Court dated 2nd August, 2019 which convicted the appellant under Section 138 of the Negotiable Instruments Act, 1881(hereinafter referred to as the “Act”) and awarded two years’ rigorous imprisonment with a fine of Rs.5,000/.

3. When the matter was taken up at the motion stage, the respondent complainant was also present in the Court represented through his counsel and a joint statement was made that the parties have entered into a compromise and the entire money has been received by him and he has no objection if the conviction recorded under Section 138 of the Act is set aside but since the compromise deed placed on record was not selfexplicit indicating the manner and mode of payment to the complainant, under the directions of the Court dated 11th February 2022, a further affidavit has been filed on 12th February, 2022 indicating the mode in which the payment has been made to the complainant. Learned counsel for the respondent complainant, on instructions from his client, submits that in terms of the affidavit filed by the complainant dated 12th February 2022, the payment has been made and he is completely satisfied with the amount received and does not wish to continue the proceedings and further submits that he has no objection, if the conviction recorded under Section 138 of the Act is set aside.

4. Learned counsel for the State submits that the conviction and sentence has been upheld at least by three Courts below and, however, it was open for the parties to contend the same at any earlier stage when the appeal or revision was pending before the appropriate forums. At least at this stage, this Court need not show any indulgence.

5. We do find force in the aforesaid contention but taking into consideration the nature of offence and the fact that the respondent complainant and the accused appellant have entered into a compromise and the respondent complainant has no objection, if the conviction already recorded under Section 138 of the Act is set aside and taking note of the compromise deed followed by an affidavit indicating the mode and manner in which the money has been paid to the respondent complainant dated 12th February 2022. It has also been stated in the said affidavit that the respondent complainant has entered into the agreement with the appellant out of his own free will and without any coercion or undue pressure from the appellant.

6. Having perused the averments made in the appeal by the appellant and also the statement made by the respondent complainant by way of affidavit dated 12th February 2022, taking note of the fact that the appellant has undergone sentence of 8 months and 20 days in terms of the certificate dated 9th April, 2022 issued from District Jail, Sri Muksar Sahib, and keeping in view the settlement arrived at between the parties, we hereby allow the appeal and set aside the conviction and sentence of two years’ rigorous imprisonment with fine of Rs.5000/awarded to the appellant under Section 138 of the Act by the trial Court and affirmed by the appellate Court and the High Court. The appellant shall be released forthwith, if not required in any other case.

7. Pending applications(s), if any, stand disposed of.