Point of Law: Dishonoured of Cheque - Amicable Settlement - Guidelines as laid down in case of Damodar S. Prabhu (Supra) and taking into account fact that parties have settled dispute amicably, in view of this court compounding of offence is required to be permitted.

JUDGMENT :

1. The instant petition under section 482 Cr. P.C. has been filed with the prayer to compound the offence committed by the petitioner under section 138 of the Negotiable Instrument Act, 1981 in Complaint Case No. 515 of 2016 (Abhay Singh vs. Jai Construction Co. and another) and further to quash the sentence of one year awarded to the petitioner.

2. The facts of the case, in brief, are that the petitioner and opposite party no.2 had a business relationship and during the course of business, the petitioner had issued two cheques each of Rs.1,00,000/-(One Lakh) in favour of opposite party no.2 and when he had deposited, the cheques were bounced due to insufficient fund. The opposite party no.2 filed a complaint case bearing no.515 of 2016 (Abhay Singh vs. Jai Construction Co. and another) under section 138 of the Negotiable Instrument Act (for short 'N.I. Act'). After the completion of the trial, the court has convicted the petitioner and sentenced him one year simple imprisonment and fine of Rs.3,00,000/-(Rupees three lakhs) vide judgment and order dated 27.11.2019. Being aggrieved the petitioner had preferred a Criminal Appeal No.01 of 2020 before the Additional Sessions Judge, Faizabad and at the time of hearing the appeal, the petitioner had deposited Rs.1,00,000/-(one lakh) before the Additional Sessions Judge, Faizabad, ultimately the appeal had been dismissed vide order dated 14.12.2020 against which the petitioner has preferred a Criminal Revision No.664 of 2020 before this Hon'ble Court which too had been dismissed at the admission stage vide order dated 18.12.2020. After the dismissal of the criminal revision, the complainant/opposite party no.2 and the petitioner have entered into settlement through his father and is ready to make payment of rest of Rs.2,00,000/-(Two Lakhs) by means of Demand Draft No.374901 of State Bank of India to opposite party no.2. On 22.01.2021 the petitioner and the opposite party no.2 have amicably entered into the agreement, which is placed on record as Annexure 4 to the instant petition. The accused/petitioner has moved this court under section 482 of Cr.P.C. for the following relief:-

"It is therefore prayed to this Hon'ble Court kindly may be pleased to compound the offence committed by the petitioner under section 138 of the Negotiable Instruments Act, 1981, in complaint case No. 515 of 2016, District -Faizabad, titled as "Abhay Singh Vs. Jai Construction Co. and another" and further quash the sentence of 1 year awarded to the petitioner"

3. With this background, learned counsel for the petitioner has submitted that this petition has been filed on 01.02.2021 on the basis of changed circumstances with the prayer to compound the offence. Learned counsel further submits that this Hon'ble Court may invoke its inherent power under section 482 Cr.P.C. so that ends of justice could be secured as the object of 'N. I. Act' is primarily compensatory and not punitive and moreover section 147 of 'N.I. Act' would have an overriding effect on section 320 Cr.P.C. irrespective of which stage the parties are compromising with the kind leave of this Hon'ble Court. It has also been submitted that on 11.02.2021, the co-ordinate Bench of this Court passed an order and directed the parties to appear before the Senior Registrar Lucknow Bench on 23.02.2021, so the factum of compromise could be verified. In compliance of the order dated 11.02.2021, both the parties had appeared before the Senior Registrar of this Court and the compromise deed was verified by the Senior Registrar. Learned counsel submits that the petitioner is languishing in jail since 14.12.2020 and has already served half of the sentence.

4. In support of his arguments, learned counsel for the petitioner has submitted that in the case of Damodar S. Prabhu vs. Sayed Babalal H. report at 2010 (2) SCC (Cri) 1328, the Hon'ble Apex Court had formulated the guidelines for compounding the offence under section 138 N.I. Act wherein in para 21, th