The court allowed the compounding of an offence under Section 138 of the Negotiable Instruments Act after the parties settled the matter, emphasizing the importance of amicable resolution.

JUDGMENT :

(Virender Singh, J.)

Petitioner-Shiv Kumar has filed the present revision petition against the judgment dated 27.06.2022, passed by learned Additional Sessions Judge-cum-Special Judge (CBI), Shimla, District Shimla, H.P. (hereinafter referred to as the ‘First Appellate Court’), in Criminal Appeal No.24-R/10 of 2021, titled as Shiv Kumar versus Pratap Singh.

2. By way of judgment dated 27.06.2022, the learned First Appellate Court has dismissed the appeal filed by the petitioner against the judgment of conviction dated 16.12.2019 and order of sentence dated 27.12.2019, passed by the Court of learned Additional Chief Judicial Magistrate, Court No.1, Rohru, District Shimla, H.P., (hereinafter referred to as the ‘trial Court’), in Criminal Case No.184/3 of 2018, titled as Pratap Singh versus Shiv Kumar.

3. Vide judgment of conviction dated 16.12.2019 and order of sentence dated 27.12.2019, 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 one year and to pay a compensation of Rs.2,30,000/- to the complainant.

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.990 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.271165, dated 04.04.2018, 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 judgment of conviction dated 16.12.2019 and order of sentence dated 27.12.2019.

8. Against the said judgment of conviction and order of sentence, the petitioner 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 paid the entire amount of compensation, 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. On behalf of the respondent, Mr. Bhag Chand Sharma, Advocate, has made the similar statement and has deposed that he has no objection, in case, the present petition is allowed and the accused is acquitted by setting aside the judgment of conviction dated 16.12.2019 and order of sentence dated 27.12.2019.

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 entire amount of compensation 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.990 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 dated 16.12.2019 and order of sentence dated 27.12.2019, passed by learned trial Court in