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2025 Supreme(P&H) 1715

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
SUMEET GOEL, J.
Harbans Singh – Appellant
Versus
The Gidderbaha Primary Agriculture Development Bank Ltd. and Another – Respondents
CRR No. 1509 of 2025
Decided On : 21-08-2025

Advocates Appeared:
For the Appellant : T.P.S. Makka
For the Respondents: Naginder Singh Vashist, Baljinder Singh

Compounding of offences under the Negotiable Instruments Act is permissible at any stage, including post-conviction, especially with bona fide settlements, affirming the roles of judicial discretion and inherent powers of High Courts.

Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 - Criminal Revision Petition - Petitioner challenged conviction and sentencing under Section 138 - Settlement reached between parties - Compounding of offence permitted even post-conviction - The court recognized the genuineness of the compromise and the hardship faced by the petitioner from rural background. (Paras 1-10)

(B) Judicial Discretion - The High Court has inherent powers to quash a conviction upon amicable settlement - The imposition of costs for compounding may be conditional, considering the conduct of the parties involved. (Paras 7.2-7.3)

Facts of the case:
The petitioner was convicted for dishonoring a cheque and subsequently, the dispute was resolved amicably with the complainant Bank confirming receipt of the cheque amount.

Findings of Court:
The court found merit in the petition due to the legitimacy of the compromise and allowed the compounding of the offence.

Issues: The court addressed whether a conviction under Section 138 can be compounded after the conviction and the implications of the petitioner’s non-appearance during the appeal.

Ratio Decidendi: The Court reaffirmed that the offense under Section 138 can be compounded at any stage and emphasized the High Court's discretion to intervene when there is a bona fide settlement between parties.

Result: Petitioner acquitted.

Table of Content
1. petition challenging conviction for dishonored cheque. (Para 1)
2. arguments on settlement and acquittal. (Para 2 , 3 , 4)
3. consideration of appeal maintainability. (Para 5 , 6)
4. guidelines for compounding non-appearance. (Para 7)
5. settlement confirmed, offense can be compounded. (Para 8)
6. consideration of petitioner's age and background. (Para 9)
7. final order to acquit petitioner. (Para 10)

JUDGMENT :

SUMEET GOEL, J.

1. The present petition has been filed impugning the judgment dated 25.02.2025 passed by Additional Sessions Judge, Sri Muktsar Sahib as also judgment and order of sentence dated 23.01.2020 passed by the Sub Divisional Judicial Magistrate, Giddarbaha whereby the petitioner has been held guilty for committing an offence punishable under Section 138 of Negotiable Instruments Act, 1881.

2. Learned counsel for the petitioner has iterated that, during the pendency of proceedings, the petitioner and the complainant-Bank have entered into a settlement/compromise and the petitioner has already deposited the cheque amount with the bank, in respect of which a certificate has been duly issued by the respondent-bank. Furthermore, the petitioner being an uneducated person hailing from a rural background was under a bona fide belief that the matter stood concluded with the respondent-Bank and, thus, discontinued appearing before the appellate Court. According to learned counsel, such conduct on the part of the petitioner has occasioned on account of a bona fide impression and not on account of any deliberate lapse or ulterior motive. Learned counsel has further submitted that since the parties have amicably settled their dispute(s), the matter may be compounded and the petitioner be acquitted. On the basis of aforesaid submissions, the grant of instant revision petition is entreated for.

3. Learned State counsel has submitted that on account of the petitioner not appearing before the learned Appellate Court, instant revision petition is not maintainable as the petitioner has failed to show any regard for the process of law, thereby, the learned appellate Court has very rightly dismissed the appeal preferred on behalf of the petitioner (herein).

4. Learned counsel appearing for the complainant-respondent has ratified the factum of compromise/settlement having been arrived at between the parties and has further vouched for the genuineness of the certificate dated 08.05.2025 issued by the bank (copy whereof has been appended as Annexure P-1 with the instant petition). Accordingly, he has iterated that the respondent-bank has no objection in case the offence is permitted to be compounded and the petitioner is ordered to be acquitted.

5. I have heard learned counsel for the rival parties and have perused the available record.

6. Dealing with the preliminary objection raised by the learned State counsel regarding maintainability of the instant revision petition, it would be apposite to refer herein to a judgment passed by this Court in Harcharan Singh vs. State of Punjab passed in CRR-1704-2025 dated 05.08.2025, relevant whereof reads thus:

“12. As a sequitur to the above ratiocination, the following postulates emerge:

I. A criminal revision petition against the judgments of conviction (as also an application for suspension of sentence, etc.) is maintainable before this High Court, without the petitioner-accused having surrendered or being in custody, in the absence of any rule in the extant Punjab and Haryana High Court Rules/Orders proscribing such maintainability.

II (i) The mere maintainability of a revision petition (as also an accompanying application for suspension of sentence) does not, ipso facto, translate into its desirability; the latter is a matter of judicial discretion –– which is inexorably linked to the bona fides and overall conduct of the petitioner-accused, including the sufficiency of reasons proffered for non- appearance before the Appellate Court.

(ii) Where the conduct of the petitioner-accused

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