IMPORTANT POINT
Dishonour of Cheque - Offence under Section 138 can be compounded during the trial of the case, as well as by the High Court or Court of Session while acting in the exercise of its power of revision.

T.P.S. MANN, J.

1. The petitioner was tried in a private criminal complaint under Section 138 of the Negotiable Instruments Act (hereinafter referred to as ‘the Act’) and sentenced to undergo Rl for two years and to pay compensation to the tune of twice the amount of the cheques to the complainant Hari Ram. The aforementioned judgment of conviction and sentence dated 2/3.3.2005 passed by Judicial Magistrate 1st Class, Bhiwani was then challenged by the petitioner by filing an appeal, which was, however, dismissed by Additional Sessions Judge, Bhiwani on 16.3.2006. Aggrieved by the same, the petitioner filed the present revision.

2. When the revision came up for motion hearing, it was submitted that the parties had arrived at a compromise. Accordingly, notice of motion was issued and the petitioner was ordered to be released on bail on 3.4.2006. In response to the notice issued, the respondent put in appearance through his counsel. The parties placed on record a settlement deed containing the terms of compromise arrived at between them. Accordingly, on 18.4.2006, this Court directed the parties to appear in the Court of Additional Sessions Judge, Bhiwani so that their statements in terms of the compromise be recorded. The lower Court was directed to submit a report along with the statements of the parties.

3. Joint statements of both the parties i.e. the petitioner as well as of respondent No.2, was recorded by Additional Sessions Judge, Bhiwani. They also vouch safed the contents of settlement deed dated 23.3.2006, which was, accordingly, Exhibited as C.2. The parties also stuck to the settlement deed Exhibit C.1, which had earlier been filed before this Court. Lastly, it was stated that they were making the said statement voluntarily without there being any pressure from any corner. Both the parties were identified by their respective counsel.

4. As per the provisions of Section 147 of the Act, the offence under Section 138 is compoundable. Section 147 reads as under:

“Offence to be compoundable

Notwithstanding anything contained in the Criminal Procedure Code, 1973 (2 of 1974), every offence punishable under this Act shall be compoundable.”

5. The compounding of the offence under Section 138 can be done during the trial of the case as well as by the High Court or Court of Session while acting in the exercise of its power of revision under Section 401 Cr.P.C. Reference may be made to Section 320(6) Cr.P.C. in this regard.

6. further, under Section 320(8) Cr.P.C. the composition of an offence shall have the effect of acquittal of the accused with whom the offence has been compounded.

7. In view of the above, where the parties have voluntarily settled the matter, it is a fit case for allowing them to compound the offence. Ordered accordingly.

8. Resultantly, the revision is accepted and the petitioner is acquitted of the charge under Section 138 of the Negotiable Instruments Act. His conviction and sentence for the said offence is set aside.