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2025 Supreme(HP) 182

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA 
VIRENDER SINGH, J.
Subash - Appellant
Versus
Naval Kishore - Respondent
Criminal Revision No. 125 of 2024
Decided On : 03-04-2025

Advocates:
Advocate Appeared:
For the Appellant : Madhurika Sekhon Verma
For the Respondent: K.B. Khajuria

Amicable settlement between parties allows for compounding of offences under the Negotiable Instruments Act, leading to the setting aside of conviction.

Headnote:

(A) Negotiable Instruments Act - Section 138 - Criminal Revision Petition - The petitioner was convicted under Section 138 of the NI Act and sentenced to six months imprisonment and compensation of Rs.1,60,000/- - The appeal against conviction was dismissed by the Appellate Court - The parties settled the dispute amicably, leading to a compounding application - The court allowed the compounding and set aside the conviction. (Paras 3, 11, 12)

(B) Compounding of Offences - The court permitted compounding of the offence under Section 147 of the NI Act, emphasizing the importance of amicable settlement between parties. (Paras 5, 11)

Facts of the case:
The petitioner was convicted for issuing a cheque that was dishonored, leading to a complaint by the respondent. The parties later settled the dispute regarding the cheque.

Findings of Court:
The court allowed the compounding application and set aside the conviction, provided the petitioner deposits a compounding fee.

Issues: The main issues included the validity of the conviction under Section 138 and the possibility of compounding the offence after settlement.

Ratio Decidendi: The court held that amicable settlement allows for compounding of offences under the NI Act, and the conviction can be set aside if the parties agree.

Result: Petition allowed; conviction set aside.

JUDGMENT :

Virender Singh, J.

1. Petitioner-Subhash has filed the present Criminal Revision Petition against the judgment dated 30.12.2023, passed by the learned Additional Sessions Judge, Rohru, District Shimla, H.P. (hereinafter referred to as the ‘Appellate Court’) in Criminal Appeal No. 129-R/10 of 2023, titled as Subash Vs. Naval Kishore.

2. By way of judgment dated 30.12.2023, the learned Appellate Court has dismissed the appeal, filed bythe petitioner, against the judgment of conviction and order of sentence dated 31.08.2023, passed by the Court of learned Additional Chief Judicial Magistrate, Court No.1, Rohru, District Shimla, H.P. (hereinafter called as the ‘trial Court’), in Criminal Case No. 72-3 of 2015, titled as Naval Kishore Vs. Subash.

3. Vide judgment of conviction and order of sentence dated 31.08.2023, 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 six months and to pay a compensation of Rs.1,60,000/- 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.4547 of 2024, under Section 147 of NI Act, for compounding of offence on the ground that the parties have amicably settled the dispute, with regard to cheque in question.

6. Today, statements of both the parties have been recorded, in which, they have deposed that the dispute, with regard to Cheque No.064473, dated 06.09.2014, has been settled between them.

7. Today i.e. 03.04.2025, Mr. K.B. Khajuria, Advocate has stated, regarding the factum, as to why, respondent-Naval Kishore 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 First Appellate Court. He has also deposed that the matter has been settled, qua Cheque No.064473, dated 06.09.2014, between the respondent and the petitioner. According to him, the respondent 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 and the amount of Rs.1,00,000/- which the petitioner has deposited with the Registry of this Court, as well as, amount of Rs.25,000/-, which has been deposited by the petitioner with the learned trial Court, be released in favour of respondent-Naval Kishore, by remitting the same in his bank account.

8. Petitioner-Subhash is also present before this Court and he 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. He has further deposed that he has no objection in case, the amount of Rs.1,00,000/- which he has deposited with the Registry of this Court, as well as, the amount of Rs.25,000/- which has been deposited by him with the learned trial Court, is released in favour of complainant-Naval Kishore.

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 ten weeks from today, and in case, he fails to deposit the compounding fee, within the stipulated period, the revision petition, may be treated as dismissed and in that eventuality, he will surrender before the learned trial Court to undergo the s

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