Parties can compound offences under Section 138 of the Negotiable Instruments Act if settled amicably, leading to acquittal upon compliance with the compounding fee.

JUDGMENT :

Virender Singh, J.

Petitioner-Beer Singh has filed the present revision petition against the judgment dated 13.11.2024, passed by learned Sessions Judge, Sirmaur at Nahan, H.P. (hereinafter referred to as the ‘Appellate Court’), in Criminal Appeal No.70-Cr.A./10 of 2024, titled as Beer Singh versus Guman Singh.

2. By way of judgment dated 13.11.2024, the learned Appellate Court has dismissed the appeal filed by the petitioner against the judgment of conviction and order of sentence dated 19.06.2024, passed by the Court of learned Chief Judicial Magistrate, Nahan, District Sirmaur, H.P., (hereinafter referred to as the ‘trial Court’), in Complaint No.394/3 of 2021, titled as Guman Singh versus Beer Singh.

3. Vide judgment of conviction and order of sentence dated 19.06.2024, 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.7,00,000/- 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.1745 of 2025, for permitting the parties to compound the offence, on the ground that the matter has been settled between the parties.

6. Statement of both the parties have been recorded, in which, they both have deposed that the dispute with regard to Cheque No.204946, dated 15.11.2020, has been settled between the parties.

7. Today, the accused is present before this Court. He has deposed that he has been convicted and sentenced by the learned trial Court vide judgment of conviction and order of sentence dated 19.06.2024.

8. Against the said judgment of conviction and order of sentence, he had filed the appeal before the learned Appellate Court and the learned Appellate Court has also dismissed his appeal. Now, he is before this Court, in the present revision petition.

9. In addition to this, the accused has also submitted that during the pendency of the revision petition, the matter has been compromised between him and the complainant and he has also paid the settled amount to the complainant.

10. The petitioner has also 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 he may kindly be acquitted of the charge. He has also deposed that he has deposited a sum of Rs.3,50,000/-, before the learned trial Court.

11. In addition to this, the petitioner has also put forward the indigent circumstances, by stating that a lenient view may kindly be taken in the matter of compounding fee.

12. Respondent has also made the similar statement and has prayed that the amount deposited by the petitioner before the learned trial Court, may kindly be released, in favour of the respondent. He has also deposed that he has no objection, in case the present petition is allowed and the accused is acquitted by setting aside the judgment of conviction and order of sentence dated 19.06.2024.

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, complainant has received the remaining amount of compensation from the petitioner.

14. According to the respondent-complainant, the dispute with regard to Cheque No.204946 dated15.11.2020, has been settled.

15. Since, the matter, with regard to cheque, in question, has been settled between the parties, as such, the application, bearing Cr.MP No.1745 of 2025, is allowed and the parties are permitted to compound the offence.

16. Considering the fact that the application for compounding of the offence has been allowed, the present petiti