Settlement between parties allows for compounding of offences under Section 147 of the NI Act, leading to acquittal.

JUDGMENT :

Virender Singh, J.

Petitioner-Mukesh Kumar has filed the present Criminal Revision Petition against the judgment dated 24.11.2023, passed by the learned Additional Sessions Judge, Kullu, District Kullu, H.P. (hereinafter referred to as the ‘First Appellate Court’), in Criminal Appeal No.43 of 2023, titled as ‘Mukesh Kumar Vs. Vikrant Chaudhary’.

2. By way of judgment dated 24.11.2023, the learned First Appellate Court has dismissed the appeal, filed by the petitioner, against the judgment of conviction and order of sentence dated 30.05.2023, passed by the Court of learned Judicial Magistrate First Class, Manali, District Kullu, H.P. (hereinafter called as the trial Court), in Complaint No.172/2021, titled as ‘Vikrant Choudhary Vs. Mukesh Kumar’.

3. Vide judgment of conviction and order of sentence dated 30.05.2023, 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.1,85,000/- (Rs.3,00,000/- cheque amount (+) Rs.35,000/- for sufferings (–) Rs.1,50,000/- as already paid) to the complainant.

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

5. Now, the petitioner has moved application, bearing CrMP No.968 of 2025, under Section 147 of NI Act, for compounding of offence on the ground that the petitioner has settled the dispute with the respondent and the petitioner has already deposited the entire compensation amount with the learned trial Court.

6. Today, statements of both the parties have been recorded, in which, they have deposed that the dispute, with regard to Cheque No.212397, dated 08.09.2021, has been settled between them.

7. Today i.e. 22.03.2025, Mr. Ashok Kumar Tyagi, Advocate has stated, regarding the factum, as to why, respondent No.1-Vikrant Chaudhary 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 between the respondent and the petitioner, qua Cheque No.212397, dated 08.09.2021, amounting to Rs.3,00,000/. 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.1,85,000/-, which the petitioner has deposited with the learned trial Court, be released in favour of respondent No.1-Vikrant Chaudhary.

8. Petitioner-Mukesh Kumar 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.1,85,000/-, which he has deposited with the learned trial Court, is released in favour of complainant-Vikrant Chaudhary.

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, the revision petition, may be treated as dismissed and in that eventuality, he will surrender before the learned trial Court to undergo the substantive se