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2025 Supreme(P&H) 414

PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
HARPREET SINGH BRAR, J.
Ram Saran - Appellant
Vs.
State Of Haryana And Another - Respondent
IOIN-CRM-429-2025 in/& CRR-14-2025
Decided On : 30-04-2025

Advocates:
Advocate Appeared:
For the Appellant :Mr. Vikas Kumar Rana, Advocate
For the Respondent:Mr. Harkesh Kumar, AAG, Haryana, Mr. Aayush Bansal, Advocate for Mr. Sanjiv Gupta, Advocate

Full payment of compensation allows for compounding under Section 138 of the NI Act, leading to acquittal.

Headnote:This Court reviews a conviction under Section 138 of the Negotiable Instruments Act following a complaint. The appellant's jail term and compensation were deliberated upon, allowing the suspension of the sentence pending this appeal. Compounding of the offence was agreed upon after full compensation was acknowledged. The petitioner is ultimately acquitted after the entire amount was settled, overriding previous judgments.

Table of Content
1. judicial review of conviction and sentence. (Para 1 , 2)
2. compounding agreement and payment of compensation. (Para 3 , 4 , 5)
3. legal principles governing section 138 and its compounding. (Para 6 , 7 , 8 , 9)
4. final acquittal based on settled compensation. (Para 10)

JUDGMENT :

Harpreet Singh Brar, J.

Present petition has been preferred against the judgment of conviction dated 17.12.2024 passed by learned Addl. Sessions Judge, Faridabad vide which judgment of conviction and order of sentence dated 17/19.08.2017 passed by learned Judicial Magistrate 1st Class, Faridabad were upheld in a complaint case filed under Section 138 of Negotiable Instruments Act, 1881 (hereinafter referred to as 'the Act').

2. On 30.01.2025, this Court passed the following order:

'This is an application filed under Section 438 of BNSS 2023 seeking suspension of sentence of the applicant/petitioner-Ram Saran during the pendency of appeal, who has been convicted under Section 138 of Negotiable Instruments Act and awarded imprisonment for one year and imposed compensation of Rs. 3,00,000/- to be paid to the complainant-respondent No. 2, vide judgement of conviction and order on quantum of sentence dated 17.08.2017/19.08.2017 passed by learned Judicial Magistrate 1st Class, Faridabad and the said judgment of conviction and order of sentence have been upheld by learned Additional Sessions Judge, Faridabad vide judgment dated 17.12.2024, in complaint case filed under of Negotiable Instruments Act.

On 10.01.2025, following order was passed: 'CRR-14-2025

Heard.

Admitted.

CRM-429-2025

Learned counsel for the petitioner submits that the petitioner has been convicted and sentenced to undergo simple imprisonment for a period of 01 year and a compensation of Rs.3 lakh has been imposed upon him. He further submits that the petitioner is ready and willing to pay Rs. 1.5 lakh to show his bona fide and undertakes to bring a demand draft of Rs. 1.5 lakh in favour of respondent No. 2 on the next date of hearing.

Notice in the application.

Mr. Pankaj Middha, Addl.A.G., Haryana puts in appearance and accepts notice on behalf of respondent No. 1-State and seeks time to produce custody certificate.

Let process qua respondent No. 2 be issued for 30.01.2025.

Process be given dasti as well.'

Learned counsel for the applicant-petitioner has brought a demand draft of Rs. 1.5 lac which has been handed over to learned counsel for respondent No. 2 in the Court itself and copy of the same has been retained on the case file. Learned counsel for the applicant further submits that in case the petitioner's remaining sentence is suspended, he will arrange the remaining amount of compensation.

Learned counsel for respondent No. 2 seeks an adjournment to have instructions with regard to compounding of offence under section 138 of NI Act.

Keeping in view the fact that applicant has undergone total custody of 02 months and 13 days (including remission) out of imprisonment of one year awarded to him and half of the amount of compensation awarded by learned Court below i.e. Rs. 1.5 lac has been handed over to learned counsel for respondent No. 2 in the Court itself, I deem it appropriate to allow this application and to suspend the sentence of applicant/petitioner-Ram Saran during the pendency of the appeal.

Bail to the satisfaction of the concerned Chief Judicial Magistrate/ Duty Magistrate.

Adjourned to 30.04.2025 for further consideration.'

2. In compliance thereof, today, learned counsel for the petitioner has brought demand draft bearing No. 349521 dated 25.04.2025 amounting to Rs. 1,50,000/- in favour of PARD Bank Ltd., which has been handed over to the counsel for respondent No.2 in Court today. Photocopy of the same has also been taken on record. Registry is directed to tag the same at appropriate place.

3. Learned counsel for the petitioner submits that the entire amount of compensation has been paid to respondent No.2 in terms of judgment of conviction dated 17.08.2017 passed by

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