The central legal point established in the judgment is the permissibility of compounding the offence under Section 138 of the Negotiable Instruments Act at later stages of litigation, emphasizing the civil nature of the offence and the provisions of Section 147.

AMAN CHAUDHARY, J.

1. The present revision petition has been preferred against the judgment dated 23.10.2019 passed by learned Sessions Judge, Gurugram dismissing the appeal filed against the judgment and order dated 13.08.2016 rendered by learned Sub Divisional Judicial Magistrate, Pataudi, vide which the petitioner was convicted and sentenced to undergo rigorous imprisonment for a period of two years along with fine of Rs.2,000/- for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (for short ‘the Act’) and further directed to pay a sum of Rs.18,00,000/- to the complainant-respondent as compensation.

2. The facts relevant to the present case are that the accused-petitioner issued three cheques of different dates, for a sum of Rs.5.5 lac each, in favour of the complainant-respondent to discharge his liability. However, when the said cheques were presented, the same were dishonoured and returned vide memo dated 01.08.2012 with remarks “funds insufficient/ refer to drawer”. On the basis of that, a complaint under Section 138 of the Act was filed against the accused-petitioner. Notice of accusation was issued to him, to which he pleaded not guilty and claimed trial.

3. To prove his case, the complainant examined himself as PW1, Krishan Kumar as PW2, Mawasi Ram as PW4 and Tara Chand as PW5. After closure of his evidence, statement of the accused was recorded under Section 313 Cr.P.C., wherein he denied all the allegations and claimed innocence. No evidence in defence was led by him.

4. On scrutinising the evidence led by the parties, the trial Court convicted and sentenced the petitioner as noticed above. Being aggrieved, he filed an appeal, which was dismissed by learned Additional Sessions Judge, Gurugram vide judgment dated 23.10.2019.

5. Challenge to the aforesaid judgments and order has been made in the present revision petition.

6. Learned counsel for the petitioner states that during the pendency of the present petition, parties have settled their dispute. By producing an affidavit dated 04.07.2023 of the complainant-respondent in this regard, he submits that the settled amount has been paid by the petitioner. He prays that the compounding fee be waived off, as the accused is a poor person working as a plumber and sole breadwinner of the family, consisting of a widowed mother, wife and 17 year old daughter. He, having had no money, borrowed the amount from his brother, so as to pay the same to the complainant, as he wanted to settle the long standing dispute of ten years.

7. Learned counsel for the sole respondent also admits the factum of compromise and states that as per the settlement, the complainant has received the agreed amount. Therefore, he has no objection, if the prayer made by the petitioner is accepted.

8. Heard the learned counsel for the parties.

9. It would be apposite to make a reference to the affidavit sworn by the complainant-respondent, the relevant of which reads thus:

“1. That I am resident of above-mentioned address.

2. That I state on oath that I have filed two complaints u/s 138 of NI Act against the petitioner vide case bearing no.NIA-83-2014 and NIA-84-2014 in the court of Ld. SDJM Pataudi and with the intervention of respectables of society matter has amicable been settled in both the cases between both of us for total amount of Rs.5,50,000/- in both the above said cases.

3. That I state on oath that in terms of the settlement I have already received an amount of Rs.5,50,000/- by way of DD no.450385 dated 31.05.2023 and 01.06.2023. In this regard settlement agreement has also been executed between both the parties in the presence of respectable and witnesses and the same is appended as Annexure P-2 with the present petition i.e. CRR no.1518 of 2023 titled Manoj Kumar vs Naveen Yadav pending for 07.07.2023 before Hon’ble Punjab and Haryana High Court.

4. That I state on oath that I have already received full and final payment of settlement amount from the petitioner and now th