Offences under Section 138 of the Negotiable Instruments Act can be compounded under Section 147 of the Act even after the conviction has been recorded by the courts below, provided the parties reach an amicable settlement.

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Sandeep Shar ma, J. (Oral)

Instant criminal revision petition filed under Section 397 read with Section 401 of the Code of Criminal Procedure, lays challenge to Hjudgment dated 01.08.2022 passed by learned Additional Sessions Judge-II, Solan, District Solan, H.P., in Criminal Appeal No.25ASJ-II/10-2018 affirming the judgment of conviction and order of sentence dated 04.05.2018 passed by learned Judicial Magistrate First Class Court No.1, Solan, District Solan, H.P., in criminal case No. 530/3 of 2014, whereby court below, while holding petitioner-accused (in short ‘accused’) guilty of having committed offence punishable under Section 138 of the Negotiable Instruments Act (in short ‘Act’) convicted and sentenced him to undergo simple imprisonment for a period of one year and six months and pay compensation to the tune of Rs.2,00,000/- to the respondent No. 1/complainant (in short ‘complainant’).

2. Precisely, the facts of the case as emerge from the record are that complainant filed a complaint under Section 138 of t.he Act in the competent court of law, alleging therein that accused with a view to discharge his lawful liability issued cheque amounting to Rs.1,00,000/- in favour of the complainant, however, the same owas dishonoured on account of insufficient funds in the bank accou nt of the accused. Since accused failed to make the payment good within the time stipulated in the legal notice, complainant was compeulled to initiate proceedings under Section 138 of the Act before the coompetent Court of law.

3. Learned trial Court on the basis of material adduced on record by the respective parties, vide judgment/order dated 04.05.2018, held the accused guihlty of having committed offence under Section 138 of the Act and accordingly, convicted and sentenced him as per the description given hereinabove.

4. Being aggrieved and dissatisfied with the aforesaid judgment of conviction recorded by the learned Judicial Magistrate First Class Court No.1, Solan, District Solan, H.P., accused preferred an appeal in the court of learned Additional Sessions Judge-II, Solan, District Solan, H.P., which came to be dismissed vide judgment dated 01.08.2022, as a consequence of which, judgment of conviction recorded by the learned trial Court came to be upheld. In the aforesaid background, accused has approached this Court by way of instant proceedings, seeking therein his acquittal after setting aside the judgments of conviction recorded by the learned Courts below.

5. Before case at hand could be heard and decided on its own merits, accused has amicably settled the matter with the. complainant, whereby he has agreed to pay the entire amount of compensation in terms of judgment passed by the learned court below to the complainant.

6. After having entered into comproomise, accused filed Cr.M.P No.668 of 2026 under Section 147 of the Act, praying therein to compound the offence. Ms. Anita, learned counsel for the complainant, while fairly acknowledging the factum wituh regard to compromise arrived inter se parties, on instructions oof the complainant, states that in case amount lying deposited with the learned trial Court is ordered to be released in favour of the complainant, complainant shall have no objection in compoundinhg the offence.

7. Mr. Rakesh Thakur, learned counsel for the accused, states that sum of Rs.50,000/- has already been paid to the complainant, which fact has been fairly acknowledged by Ms. Anita, learn