IMPORTANT POINT
The offence under Section 138 of the Negotiable Instruments Act can be compounded post-conviction if the parties reach a settlement, subject to the payment of a compounding fee.

JUDGMENT :

(Virender Singh, J.)

Petitioner-Subhash Chand has filed the present Criminal Revision Petition against the judgment dated 30.12.2024, passed by the learned Additional Sessions Judge, Palampur, District Kangra, H.P. (hereinafter referred to as the ‘Appellate Court’), in RBT Criminal Appeal No.214-P/IV/2023, titled as ‘Subhash Chand Vs. H.P. Gramin Bank & Anr.’.

2. By way of judgment dated 30.12.2024, the learned Appellate Court has dismissed the appeal, filed by the petitioner, against the judgment of conviction and order of sentence dated 29.08.2023, passed by the Court of learned Judicial Magistrate First Class, Jaisinghpur, District Kangra, H.P. (hereinafter called as the trial Court), in Criminal Complaint No.193-III/2022, titled as ‘H.P. Gramin Bank Vs. Subhash Chand’.

3. Vide judgment of conviction and order of sentence dated 29.08.2023, the learned trial Court has convicted the petitioner, for the offence, punishable under Section 138 of the Negotiable Instruments Act (hereinafter referred to as the ‘NI Act’) and sentenced him to undergo simple imprisonment for a period of three months and to pay a compensation of Rs.1,00,000/- to the complainant.

4. After dismissal of the appeal by the learned Appellate Court, the present Criminal Revision Petition has been preferred.

5. Now, the petitioner has moved application, bearing CrMP No.1089 of 2025, under Section 147 of NI Act, for compounding of offence on the ground that he has already settled the entire compensation amount with the respondent-Bank.

6. Today, statements of both the parties have been recorded, in which, they have deposed that the dispute, with regard to Cheque No.626891, dated 01.10.2022, has been settled between them.

7. Today i.e. 07.04.2025, Mr. Naresh Kumar, Branch Manager of respondent-Bank, has stated on oath, regarding the factum, as to why, the Bank has filed the complaint against the accused (petitioner herein), in which, the judgment of conviction and order of sentence have been passed, which has unsuccessfully been assailed, before the learned Appellate Court. He has also deposed that the matter has been settled between the respondent- Bank and the petitioner, qua Cheque No.626891, dated 01.10.2022.

7.1. According to him, the respondent-Bank has no objection, if the present revision petition is allowed and the judgment of conviction and order of sentence are ordered to be set aside. It has been submitted by the Branch Manager of the respondent-Bank that out of the compensation amount, Rs.80,000/- has been deposited with the Bank on 26.12.2024 and the amount of Rs.20,000/-, which the petitioner has deposited with the learned trial Court, may be released in favour of respondent-Bank.

8. Petitioner-Subhash Chand is also present before this Court and has also stated in the aforesaid terms. He has also deposed that on the basis of the settlement, the present petition may be allowed by setting aside the judgment of conviction and order of sentence, referred to above, and he may be acquitted from the offence, punishable under Section 138 of NI Act.

8.1. Petitioner has further deposed that out of the compensation amount, he has deposited Rs.80,000/- with the respondent-Bank on 26.12.2024. He has also deposited Rs.20,000/- with the learned trial Court on 31.10.2023 and he has no objection in case, the amount of Rs.20,000/-, so deposited by him with the learned trial Court, is released in favour of respondent-Bank.

9. In addition to this, the petitioner has also put forward the indigent circumstances, by stating that some relaxation may be given in the compounding fee.

10. Apart from this, the petitioner-accused has also given an undertaking that he will deposit 50% of the compounding fee with the H.P. State Legal Services Authority, Shimla and remaining 50% of the compounding fee with H.P. High Court Staff Welfare Organization, Shimla, within a period of eight weeks from today, and in case, he fails to deposit the compounding fee, within the stipulated period