The court allowed the compounding of an offence under Section 138 of the NI Act, quashing the conviction upon settlement between the parties.

JUDGMENT :

(Virender Singh, J.)

Petitioner-Rajesh Gazta Singh has filed the present Criminal Revision Petition against the judgment dated 02.04.2024, passed by the learned Additional Sessions Judge- II, Shimla, District Shimla, H.P., (hereinafter referred to as the ‘First Appellate Court’), in Criminal Appeal No.52-S/10 of 2022, titled as ‘Rajesh Gazta versus Devi Ram’.

2. By way of judgment dated 02.04.2024, the learned First Appellate Court has dismissed the appeal, filed by the petitioner, against the judgment of conviction and order of sentence dated 01.08.2022, passed by the Court of learned Additional Chief Judicial Magistrate, Theog, District Shimla, H.P. (hereinafter called as the ‘trial Court’), in Criminal Case No.31/3 of 2019, titled as ‘Devi Ram versus Rajesh Gazta’.

3. Vide judgment of conviction and order of sentence dated 01.08.2022, the learned trial Court has convicted the petitioner, for the offence, punishable under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as the ‘NI Act’) and sentenced him to undergo simple imprisonment, for a period of one year and to pay a compensation of Rs.4,00,000/- to the complainant.

4. After dismissal of the appeal by the learned First Appellate Court, the present Criminal Revision Petition has been preferred. During the pendency of the petition, the respondent No.1 had expired and his legal heirs have already been brought on record.

5. Now, the petitioner has moved application, bearing Cr.MP No.952 of 2025, under Section 147 of NI Act, read with Section 528 of the BNS, for compounding of the offence.

6. Statements of both the parties have been recorded, in which, they have deposed that the dispute, with regard to Cheque No.000055, amounting to Rs.5,00,000/- has been settled between them.

7. Today i.e. 24.03.2025, complainant has stated on oath, regarding the factum, as to why, he has filed the complaint against the accused-petitioner, in which, the judgment of conviction and order of sentence have been passed, which have unsuccessfully been assailed, before the learned First Appellate Court. He has also deposed that the matter has been compromised between them and has paid the entire amount of compensation and now, nothing is due against the petitioner.

8. According to the complainant, since, the entire amount of compensation has been paid by the petitioner, therefore, he has no objection, if the present revision petition is allowed and the judgment of conviction and order of sentence are ordered to be quashed and set aside and the petitioner is acquitted from the offence, punishable under Section 138 of NI Act.

9. Today, petitioner is also present before this Court and he has also stated in the aforesaid terms. He has deposed that he has deposited a sum of Rs.80,000/- before the learned the trial Court. He has also deposed that on the basis of the compromise, 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.

10. 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.

11. Apart from this, the petitioner-accused has also given an undertaking that he will deposit the compounding fee, 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 sentence, imposed upon him, by the learned trial Court.

12. Considering the statement of the parties, as well as, considering the fact that the matter has been settled between the accused (petitioner) and the complainant, application, bearing Cr.MP No.952 of 2025, is allowed and the petitioner is permitted to compound the offence.

13. Consequently, the present pe