The offence under Section 138 of the Negotiable Instruments Act can be compounded if the parties reach a mutual settlement, allowing for acquittal upon payment of a compounding fee.

JUDGMENT :

(Virender Singh, J.)

Petitioner-Dheeraj Kumar has filed the present revision petition against the judgment dated 10.06.2024, passed by learned Additional Sessions Judge, Nalagarh, District Solan (hereinafter referred to as the ‘First Appellate Court’), in Criminal Appeal No.13-NL/10 of 2023, titled as Dheeraj versus Meenu Chandel.

2. By way of judgment dated 10.06.2024, the learned First Appellate Court has dismissed the appeal filed by the petitioner against the judgment of conviction dated 21.06.2023 and order of sentence dated 23.06.2023, passed by the Court of learned Judicial Magistrate First Class, Court No.2, Nalagarh, District Solan, H.P., (hereinafter referred to as the ‘trial Court’), in Case No.288 of 2020, titled as Meenu Chandel versus Dheeraj.

3. Vide judgment of conviction dated 21.06.2023 and order of sentence dated 23.06.2023, 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 two months and to pay a compensation of Rs.4,20,000/- to the complainant.

4. After dismissal of the appeal by the learned First 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.727 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.606121, dated 20.02.2020, 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, dated 21.06.2023 and order of sentence dated 23.06.2023.

8. Against the said judgment of conviction and order of sentence, he had filed the appeal before the learned First Appellate Court and the learned First 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.80,000/-, 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. On behalf of the respondent, Mr. Mukesh Sharma, Advocate, has 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 dated 21.06.2023 and order of sentence dated 23.06.2023.

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

14. According to the learned counsel for the respondent-complainant, the dispute with regard to Cheque No.606121 dated 20.02.2020, 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.727