Parties can compound offences under Section 138 of the NI Act if the matter is settled amicably, leading to acquittal of the accused.

JUDGMENT :

Virender Singh, J.

Petitioner-Sanjay Chauhan has filed the present revision petitions against the judgments dated 29.11.2023, passed by learned Sessions Judge, Shimla, H.P. (hereinafter referred to as the ‘First Appellate Court’), in Criminal Appeal Nos.176, 177, 183, 184 of 2023, titled as Sanjay Chauhan versus Anurag Chauhan.

2. By way of judgments dated 29.11.2023, the learned First Appellate Court has dismissed the appeals filed by the petitioner against the judgments of conviction dated 01.08.2023 and orders of sentence dated 21.08.2023, passed by the Court of learned Chief Judicial Magistrate, Shimla, District Shimla, H.P., (hereinafter referred to as the ‘trial Court’), in Complaint u/s 138 of NI Act Nos.1110, 1111, 1114 and 1115 of 2019, titled as Anurag Chauhan versus Sanjay Chauhan.

3. Vide judgments of conviction dated 01.08.2023 and orders of sentence dated 21.08.2023, learned trial Court has convicted the petitioner, in all the cases, 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 fine of Rs.5,20,000/-. In default of payment of fine, he has been sentenced to further undergo simple imprisonment for 15 days.

4. After dismissal of the appeals by the learned First Appellate Court, the present revision petitions have been preferred.

5. During the pendency of the present petitions, the parties have settled the matter. Thereafter, the petitioner has filed applications, bearing Cr.MP Nos.1084 to 1087 of 2025, for permitting the parties to compound the offence, on the ground that the matter has been settled between the parties.

6. Statements of both the parties have been recorded, in which, they both have deposed that the dispute with regard to Cheque Nos.846583, dated 23.08.2019, 846584, dated 05.08.2019, 846585, dated 30.07.2019 and 846587, dated 23.08.2019, 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 judgments of conviction dated 01.08.2023 and orders of sentence dated 21.08.2023.

8. Against the said judgments of conviction and orders of sentence, the petitioner had filed the appeals before the learned First Appellate Court and the learned First Appellate Court has also dismissed his appeals. Now, he is before this Court, in the present revision petitions.

9. In addition to this, the accused has also submitted that during the pendency of the revision petitions, the matter has been compromised between him and the complainant. He has also deposed that he has deposited a sum of Rs.10,80,000/-, before the Registry of this Court and the remaining amount of Rs.10,00,000/-, 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 judgments of conviction and orders of sentence, referred to above, and he may kindly be acquitted of the charge, in all the cases.

11. Respondent is also present in person and has made the similar statement. He has deposed that he has no objection, in case, the present petitions are allowed and the accused is acquitted by setting aside the judgments of conviction dated 01.08.2023 and orders of sentence dated 21.08.2023.

12. 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 entire amount of compensation from the petitioner.

13. Since, the matter, with regard to cheques, in question, has been settled between the parties, as such, the applications, bearing Cr.MP Nos.1084 to 1087 of 2025, are allowed and the parties are permitted to compound the offence.

14. Considering the fact that the applications for compounding of the offence have been allowed, the