An offence under Section 138 of the Negotiable Instruments Act, 1881 is compoundable upon a voluntary settlement between the parties, leading to the acquittal of the accused once the settlement is confirmed by the court.

O R D E R

CRL.M.A. 12101/2026 (exemption)

Exemption granted, subject to just exceptions.

The application stands disposed-of.

CRL.REV.P.(NI) 135/2026

By way of the present revision petition filed under sections 438/442 read with section 528 of the Bharatiya Nagarik Suraksha Sanhita 2023, the petitioner (accused) impugns judgment of conviction dated 07.08.2024 and sentencing order dated 31.08.2024 passed by the learned Judicial Magistrate First Class (NI Act) Digital Court, North-East District, Karkardooma Courts, Delhi in CC NI Act No.308/2021; and judgment dated 17.03.2026 passed by the learned Additional Sessions Judge-04, North-East District, Karkardooma Courts, Delhi in Criminal Appeal No.192/2024.

By way of judgment of conviction dated 07.08.2024, the petitioner was convicted for the offence under section 138 of the Negotiable Instruments Act, 1881 (‘NI Act’); and by sentencing order dated 31.08.2024, he was sentenced to simple imprisonment of 10 months alongwith fine of Rs.2,75,000/- to be paid as compensation to the respondent (complainant) within 45 days, with a default simple imprisonment of 02 months.

Vide judgment dated 17.03.2026, the learned Sessions Court has upheld judgment of conviction dated 07.08.2024, while reducing the custodial sentence of simple imprisonment to 04 months but maintaining the sentence of fine imposed by the learned JMFC.

The petitioner was taken into custody on 17.03.2026 towards execution of the custodial sentence; and has been in judicial custody ever-since.

Learned counsel for the petitioner submits, that the petitioner has settled the matter with the respondent by paying a ‘settlement’ amount of Rs.2,30,000/-, and in consideration thereof, the respondent has furnished a no-objection affidavit notarized on 08.04.2026, confirming the settlement as well as the receipt of the sum of Rs.2,30,000/- by way of a demand draft. The respondent has also, by that affidavit, conveyed his no-objection to the compounding of the offence and closure of the proceedings.

Issue notice.

The respondent is present in-person; and accepts notice. His credentials have been verified. A copy of the respondent’s Aadhaar card is retained and taken on record.

Upon query, the complainant submits, that he has settled the matter with the petitioner; that he has received the ‘settlement’ amount of Rs.2,30,000/-; and that he does not wish to pursue the matter any further.

Considering the nature of the offence and the settlement between the petitioner and the respondent; and being satisfied that the respondent has voluntarily settled the matter with the petitioner, the present petition is allowed, thereby setting-aside impugned judgment dated 17.03.2026 passed by the learned Sessions Court in Criminal Appeal No.192/2024; as well as judgment of conviction dated 07.08.2024 and sentencing order dated 31.08.2024 passed by the learned JMFC in CC NI Act No.308/2021.

Accordingly, the petitioner is acquitted of the offence under section 138 of the NI Act.

As a sequitur to the above, the petitioner is directed to be released from judicial custody forthwith upon receipt of a copy of this order.

Let a copy of this order be communicated by the Registry to the concerned Jail Superintendent expeditiously.

The petition is disposed-of.

Pending applications, if any, also stand disposed-of.