IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
SUSHIL KUKREJA, J.
Diwan Chand - Appellant
Versus
Sunder Singh – Respondent
Criminal Revision No. 04 of 2025
Decided on : 02-01-2025
(A) Negotiable Instruments Act, 1881 - Section 138 and 147 - Compounding of offences - Petitioner convicted under Section 138 - Compromise reached between parties - Complainant has no objection to quashing the conviction - Court allows compounding as per guidelines from Damodar S. Prabhu v. Sayed Babalal H. - Application allowed, judgment quashed, and petitioner acquitted. (Paras 8, 10, 14)
(B) Compounding Fee - Guidelines for imposition of fee - Court can reduce fee based on circumstances of the case - Petitioner directed to pay token fee of Rs.5,000/-. (Paras 16, 17)
Facts of the case:
The petitioner was convicted under Section 138 of the Negotiable Instruments Act and sought to compound the offence after reaching a compromise with the complainant, who expressed no objection to quashing the conviction.
Findings of Court:
The court accepted the compromise and quashed the conviction, allowing the matter to be compounded under Section 147 of the Act.
Issues: Whether the compromise between the parties can lead to the quashing of the conviction under Section 138 of the Act.
Ratio Decidendi: The court ruled that under Section 147 of the Negotiable Instruments Act, offences can be compounded even after conviction, provided there is a valid compromise between the parties.
Result: The petition is allowed; the conviction is quashed and the petitioner is acquitted.
JUDGMENT :
The instant petition has been filed by the petitioner-accused under Section 442 of the Bharatiya Nagrik Suraksha Sanhita, 2023 (for short “BNSS”) against judgment dated 09.05.2024, passed by learned Sessions Judge Kinnaur, Sessions Division at Rampur Bushahr, H.P., in Criminal Appeal No. 58 of 2023, whereby the judgment of conviction and order of sentence, dated 08.08.2023, passed by learned Judicial Magistrate First Class, Anni, District Kullu, H.P., in Case No. 157/2018, was affirmed.
2. The brief facts, giving rise to the present petition, can succinctly be summarized as under:
3. The complainant-Shri Sunder Singh was running a garment shop in the name and style “Shree Hans Readymade Garments, near bus stand Anni, District Kullu, H.P. and the petitioner-accused was also running a readymade garments shop in that area. The complainant and the petitioner-accused were well acquainted with each other. During the month of January, 2018, the petitioneraccused approached the complainant and requested to lend him Rs.2,48,000/- for depositing the whole KCC loan amount and he told that bank official had assured that after a week, the petitioner-accused can get the same released. On persistent requests of the petitioner-accused, the complainant paid a sum of Rs.2,48,000/- to him, some amount in cash and remaining through cheques. The petitioner-accused, agreed to return the aforesaid amount within 21 days. Thereafter, the petitioner-accused failed to repay the borrowed amount with interest within 21 days and on being requested by the complainant, the petitioneraccused postponed the payment on one pretext or other. Ultimately, the petitioner-accused, in order to discharge his financial liability towards the complainant, issued cheque bearing No. 481387, dated 22.05.2018, amounting to Rs.2,48,000/- in favour of the complainant, drawn at State Bank of India, Branch Office Anni, District Kullu, H.P.. However, the aforesaid cheque, on being presented for encashment by the complainant, was dishonoured with remarks ‘insufficient funds’, vide memo dated 23.05.2018. Subsequently, on 21.06.2018, the complainant sent a legal notice to the petitioner-accused, through registered post and the petitioner-accused failed to make the payment of the cheque amount within the stipulated time. Resultantly, the complainant filed a complaint under Section 138 of Negotiable Instruments Act (for short “the Act”) before the learned Trial Court.
4. The learned Trial Court after conclusion of the trial convicted the accused under Section 138 of the Act and sentenced him to undergo simple imprisonment for a period of six months and to pay compensation of Rs.2,48,000/- to the complainant and in default of payment of compensation, the accused was further ordered to undergo simple imprisonment for a period of three months.
5. Being dissatisfied, the accused/petitioner/convict preferred an appeal before the learned Lower Appellate Court, which was dismissed, vide judgment dated 09.05.2024, and the judgment and order of sentence dated 08.08.2023, passed by the learned Trial Court, was affirmed. Hence, accused/petitioner/convict-Diwan Chand preferred the instant petition under Section 442 of BNSS with a prayer that his petition be allowed and the impugned judgments and order of sentence passed by the learned Courts below be set-aside and he be acquitted.
6. Alongwith the instant petition, an application (Cr.MP No. 5390 of 2024) under Section 528 of BNSS read with Section 147 of the Act has been filed by the petitioner- accused seeking permission of this Court to compound the offence on the basis of compromise deed filed alongwith the application by setting-aside the judgment of conviction and order of sentence dated 08.08.2023, passed by learned Judicial Magistrate 1 st Class Anni, District Kullu, H.P., which was affirmed by learned Sessions Judge, Kinnaur Sessions Division at Rampur Bushahr, H.P., vide judgment dated09.05.2024, in Criminal Appeal No. 58 of 2023.
7.
Under Section 147 of the Negotiable Instruments Act, offences can be compounded post-conviction if both parties reach a valid compromise.
The court determined that offenses under the Negotiable Instruments Act can be compounded post-conviction, overriding standard compounding rules in the CrPC, based on a settlement between the parties....
Compounding of offences under Section 147 of the Negotiable Instruments Act is permissible even post-conviction, overriding general provisions of the CrPC.
Under Section 147 of the Negotiable Instruments Act, offences can be compounded even post-conviction if both parties reach a compromise and the complainant has no objection.
Under Section 147 of the Negotiable Instruments Act, offences are compoundable, allowing for quashing of conviction upon mutual settlement between parties.
Offences under the Negotiable Instruments Act, 1881 are compoundable even after conviction, allowing for settlement between parties.
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