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2025 Supreme(HP) 378

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
VIRENDER SINGH, J.
Avinash Sharma - Appellant 
Versus
Krishan Kumar - Respondent 
Cr. Revision No. 179 of 2025
Decided on : 09-05-2025

Advocates:
Advocate Appeared:
For the Appellant :Mr. Tarun Brakta, Advocate
For the Respondent:Mr.   Sunil   Kumar   Banyal, Advocate, vice Mr. Ajay Kumar  Lahota, Advocate.

The court permitted the compounding of an offence under Section 138 of the NI Act after the parties settled the matter, leading to the acquittal of the petitioner.

Headnote:

(A) Negotiable Instruments Act - Section 138 - Revision petition against conviction and sentence - Petitioner convicted for dishonor of cheque, sentenced to six months imprisonment and compensation of Rs.80,000/- - Appeal dismissed by Appellate Court - Matter settled between parties during revision, allowing compounding of offence - Judgment of conviction and sentence set aside, petitioner acquitted. (Paras 3, 16, 17)

(B) Compounding of Offences - Parties permitted to compound the offence as the dispute has been settled, with conditions for compounding fee. (Paras 15, 17)

Facts of the case:
The petitioner was convicted for the offence under Section 138 of the NI Act for dishonoring a cheque. The Appellate Court dismissed his appeal, but the parties later settled the matter, leading to the present revision petition. (Paras 3, 4, 12)

Findings of Court:
The court allowed the compounding of the offence based on the settlement between the parties and set aside the previous judgments of conviction and sentence. (Paras 16, 17)

Issues: The main issue was whether the offence could be compounded after the conviction and sentence were affirmed by the Appellate Court. (Paras 4, 15)

Ratio Decidendi: The court held that since the parties settled the matter and the complainant had no objection to the acquittal, the conviction and sentence could be set aside, allowing for compounding under the provisions of the NI Act. (Paras 16, 17)

Result: Petition allowed; judgment of conviction and sentence set aside, petitioner acquitted.

JUDGMENT :

Virender Singh, J.

Petitioner-Avinash Sharma has filed the present revision petition against the judgment dated 04.09.2023, passed by learned Additional Sessions Judge, Rohru District Shimla, H.P. (hereinafter referred to as the ‘Appellate Court’), in Criminal Appeal RBT No.68-R/10 of2023, titled as Avinash Sharma versus Krishan Kumar.

2. By way of judgment dated 04.09.2023, the learned Appellate Court has dismissed the appeal filed, by the petitioner, against the judgment of conviction dated 07.01.2023 and order of sentence dated 09.01.2023, passed by the Court of learned Additional Chief Judicial Magistrate, Court No.1, Rohru, District Shimla, H.P., (hereinafter referred to as the ‘trial Court’), in Case No.232- 3 of 2018, titled as Krishan Kumar versus Avinash Sharma.

3. Vide judgment of conviction dated 07.01.2023 and order of sentence dated 09.01.2023, 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.80,000/- to the complainant.

4. After dismissal of the appeal by the learned Appellate Court, the present revision petition has been preferred.

5. During the pendency of the present petition, the parties have settled the matter. Thereafter, the petitioner has filed application bearing Cr.MP No.1809 of 2025, for permitting the parties to compound the offence, on the ground that the matter has been settled between the parties.

6. Statements of learned counsel representing the the parties have been recorded, in which, they both have deposed that the dispute with regard to Cheque No.051572, dated 10.05.2018, has been settled between the parties.

7. Learned counsel for the petitioner has deposed that the petitioner has been convicted and sentenced by the learned trial Court vide judgment of conviction dated 07.01.2023 and order of sentence dated 09.01.2023. Against the said judgment of conviction and order of sentence, the petitioner had filed the appeal before the learned Appellate Court and the learned Appellate Court has also dismissed the appeal filed by the petitioner. Now, the petitioner is before this Court, in the present revision petition.

8. In addition to this, learned counsel for the petitioner has also submitted that during the pendency of the revision petition, the matter has been compromised between the petitioner and the complainant.

9. Learned counsel has also deposed that the petitioner has paid the entire amount to the complainant. He has also deposed that a sum of Rs.16,000/-, deposited by the petitioner before the learned trial Court, may kindly be refunded back to him.

10. In addition to this, learned counsel for the petitioner has also put forward the indigent circumstances of the petitioner, by stating that the petitioner is a poor person and a lenient view may kindly be taken, in the matter of compounding fee.

11. Learned counsel for the petitioner has further deposed that on the basis of the said compromise, the present petition may kindly be allowed by setting aside the judgment of conviction and order of sentence, referred to above, and the petitioner may kindly be acquitted of the charge.

12. Learned counsel for the respondent has also made the similar statement and has deposed that the complainant has no objection, in case the amount deposited by the petitioner, before the learned trial Court, is released, in favour of the petitioner. He has also deposed that the complainant has no objection, in case the present petition is allowed and the accused is acquitted by setting aside the judgment of conviction dated 07.01.2023 and order of sentence dated 09.01.2023.

13. On the basis of the statements, so made by the parties, one thing is clear that the matter has been settled between the parties and in pursuance of the said settlement, the petitioner has paid the entire amount of com

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