Offences under Section 138 of the Negotiable Instruments Act can be compounded if the parties reach a mutual settlement.

JUDGMENT :

(Virender Singh, J.)

Petitioner-Balbir Singh has filed the present revision petition against the judgment dated 29.10.2024, passed by learned Sessions Judge, Sirmaur District at Nahan, H.P. (hereinafter referred to as the ‘First Appellate Court’), in Criminal Appeal No.163 of 2023, titled as Balbir Singh versus Harsh Bansal.

2. By way of judgment dated 29.10.2024, the learned First Appellate Court has dismissed the appeal filed by the petitioner against the judgment of conviction and order of sentence dated 04.10.2023, passed by the Court of learned Judicial Magistrate First Class, Nahan, District Sirmaur, H.P., (hereinafter referred to as the ‘trial Court’), in Complaint No.16/3 of 2018, titled as Harsh Bansal versus Balbir Singh.

3. Vide judgment of conviction and order of sentence dated 04.10.2023, 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 pay a fine of Rs.1,60,000/- and in default of payment of fine, he has been directed to undergo simple imprisonment for a period of six months.

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.939 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.000044, dated 25.10.2017, has been settled between the parties.

7. Today, the petitioner (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 04.10.2023.

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 deposited a sum of Rs.32,000/-, before the learned trial Court, and remaining settled amount, has been paid 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.

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 his favour. He has also deposed that he has no objection, in case the present petition is allowed and the petitioner accused is acquitted by setting aside the judgment - of conviction and order of sentence dated 04.10.2023.

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 settled amount from the petitioner.

14. Since, the matter, with regard to cheque, in question, has been settled between the parties, as such, the application, bearing Cr.MP No.939 of 2025, is allowed and the parties are permitted to compound the offence.

15. Considering the fact that the application for compounding of the offence has been allowed, the present petition is allowed and the judgment of conviction and order of sentence dated 0