The court has the power to compound the offence under Section 138 of the Negotiable Instruments Act, even after the conviction of the accused, based on the provisions of Section 147 of the Act and relevant judgments from the Hon'ble Apex Court and other Constitutional Courts.

JUDGMENT :

SUSHIL KUKREJA, J.

By way of instant petition filed under Section 482 of the Code of Criminal Procedure, the petitioner, who has been convicted and sentenced for committing offence under Section 138 of the Negotiable Instruments Act, 1981 (hereinafter referred to as “the Act”), in Criminal Case No. 270/2017, is seeking compounding of offence on the basis of compromise arrived inter se parties.

2. Brief facts of the case are that complainant/respondent No. 1 filed a complaint under Section 138 of the Act against the accused/petitioner, alleging therein that in January, 2017, the accused entered into an agreement with the complainant to purchase Tata Indigo Car bearing registration No. HP17C5207.

The Accused also agreed to pay balance installments alongwith over dues amounting to Rs. 2,25,000/, which was financed by Shri Ram City Union Finance Ltd. with a view to discharge his aforesaid liability. The accused issued a post dated cheque bearing No. 084434 dated 11.05.2017, for a sum of Rs. 2,00,000/drawn at Union Bank of India, Paonta Sahib in favour of the complainant. However, the said cheque on its presentation in the bank was dishonoured on account of insufficient funds. After receipt of memo from the concerned bank, the complainant served accused with a legal notice calling upon him to make the payment. Since the accused failed to make payment within he time period stipulated in the legal notice, complainant was compelled to file proceedings under Section 138 of the Act.

3. Learned trial Court on the basis of material adduced on record by the respective parties, vide judgment/order dated 20.05.2019, held the petitioner-accused guilty of having committed offence under Section 138 of the Act and convicted and sentenced him to undergo simple imprisonment for two years and pay compensation to the tune of Rs. 2,24,000/to the respondent/complainant and in default of payment of fine to further undergo simple imprisonment for a period of one month.

4. Being aggrieved and dissatisfied with the aforesaid judgment/order of conviction/sentence passed by the learned trial Court, accused preferred an appeal in the Court of learned Additional Sessions Judge, Sirmaur District at Nahan, H.P. (Camp at Paonta Sahib), which was dismissed vide judgment dated 12.03.2020. The petitioner/accused further laid challenge to the aforesaid judgment before this Court in Cr. Revision No. 163 of 2020, which was also dismissed by this Court vide judgment dated 15.11.2021.

5. After passing of judgment dated 15.11.2021 by this Court, thereby dismissing the criminal revision petition filed by the petitioner-accused, parties have entered into compromise and the petitioner-accused had paid the entire amount of compensation to the respondent-complainant. Therefore, in this background, the petitioner has approached this court in the instant proceedings filed under Section 482 of the Code of Criminal Procedure, praying therein for compounding of offence.

6. Learned counsel for respondent No. 1 in reply to the petition has specifically stated that the matter stands amicably settled between the petitioner vide Compromise Deed (Annexure P4) and respondent No. 1 has no objection in case the offence committed by the petitioner under Section 138 of the Act is compounded and the judgment of conviction and order of sentence passed by the learned trial Court is quashed and set aside.

7. Even though the parties have amicably settled their dispute, as is evident from the Compromise Deed (Annexure P4) placed on record, however the question which arises for consideration before this Court is as to whether this Court can proceed to compound the offence, after dismissal of criminal revision petition filed by the petitioner accused vide judgment dated 15.11.2021 and by upholding the judgment of conviction and order of sentence recorded by the learned trial Court.

8. While relying upon the judgment of Hon'ble Apex Court as well as other Constitutional Courts, a coordinate Bench of