Offence under Section 138 of the Negotiable Instruments Act is compoundable under Section 147, allowing the court to acquit the accused upon an amicable settlement between the parties.

Digitally signed by BHOLA B NH ATO HLA NATH KHATAI KHATAI D 20a 2te 6: .03.02 10:22:44 +0530

NAFR

Order on Board

1. Heard on I.A. No.02/2026, application under Section 147 of the Negotiable Instrument Act, 1881 , seeking permission of this Court to compound the offence on the basis of the compromise arrived at between the parties.

2. The applicant Hariom Sharma was charged under Section 138 of the Negotiable Instruments Act regarding the dishonour of Cheque No. 307649, dated 15.05.2017, for an amount of 5.5 lakhs and Cheque No.307650 dated 25.05.2017, for an amount of Rs.5.5 lakhs.

3. The trial Court i.e. JMFC, Raipur vide judgment dated 28.06.2024 in Complainant Case No. 2030/2017 convicted the applicant for the offence punishable under Section 138 of NI Act and sentenced him to undergo Simple Imprisonment for 3 months and pay fine/compensation of Rs.22,00,000/-, in default of payment of fine to undergo additional SI for 2 months.

4. Being aggrieved by the said judgment, the applicant preferred an appeal i.e. Criminal Appeal No. 230/2024 before the 2nd Additional Sessions Judge, Raipur. The appellate Court, vide impugned judgment dated 12.12.2025, dismissed the appeal affirming the judgment passed by the trial Court, leading to the filing of this revision.

5. Both the parties have jointly filed this application under Section 147 of the N.I. Act, 1881, which is supported by their affidavits. According to which, the parties have amicably settled their dispute and the applicant has paid Rs. 8,00,000/- by DD No. 129558 dated 23.01.2026 to the respondent/complainant.

6. Learned counsel for the applicant prayed that the application may be allowed and the applicant may be acquitted of the aforesaid offence as the parties have arrived at an amicable settlement.

7. Learned counsel for the respondent admitted to receiving the said amount in the matter and submits that there is no dues upon the applicant, and he does not want any further prosecution against the applicant.

8. Heard learned counsel for both the parties and perused the material available on record including the impugned judgment.

9. Taking into consideration the fact that offence under Section 138 of N.I. Act is a compoundable offence under the provisions of Section 147 of N.I. Act and further looking to the facts and circumstances of the case and also considering the statements made by the counsel for the parties before this Court, the compromise application is hereby allowed. Applicant Hariom Sharma is acquitted of the charge under Section 138 of N.I. Act.

10. Accordingly, the criminal revision is disposed of. The bail bonds and sureties of the applicant shall stand discharged.

11. Record of the trial Court along with the copy of this order be sent back forthwith for compliance and necessary action, if any.