Offenses under Section 138 of the Negotiable Instruments Act are compoundable under Section 147 of the Act even after the recording of conviction by lower courts, provided the parties reach an amicable settlement.

Sandeep Sharma, J. (Oral)

By way of instant petition filed under Section 528 of Bharatiya Narik Suraksha Sanhita, 2023 read with Section 147 of the Negotiable Instruments A ct, lays challenge to judgment dated 10.03.2025 passed by learned Additional Sessions Judge (CBI Court), Shimla, Himachal Pradesh, in Criminal Appeal No.80-S/10 of 2024, affirming the judgment of conviction dated 22.07.2024 and order of sentence dated 30.07.2024, passed by learned Additional Chief Judicial Magistrate Court No.1, Shimla District Shimla, Himachal Pradesh, in case registration No.1147 of 2021, whereby learned trial Court, while holding the petitioner-accused (hereinafter, ‘accused’) guilty of having committed offence punishable under Section 138 of the Negotiable Instruments Act, (for short ‘Act’) convicted and sentenced him to undergo simple imprisonment for a period of six months and pay fine to the tune of Rs.2,80,000/- to the respondent- complainant (hereinafter, ‘complainant’).

2. Precisely, the facts of the case as emerge from the pleadings as well as other material adduced on record are that complainant filed a complaint under Section 138 of the Act in the competent court of law, alleging therein that accused with a view to discharge his .lawful liability issued two post-dated cheques bearing No.584453 dated 30.06.2021 amounting to Rs.1,00,000/- and cheque bearing No.584454 dated 15.07.2021 amounting to Rs.1,15,000/- in ofavour of the complainant, however, the same were dishonoured on account of insufficient funds in the bank account of the accused. Since accused failed to make the payment good within the time ustipulated in the legal notice, complainant was compelled to initiate poroceedings under Section 138 of the Act before the competent Court of law.

3. Learned trial Court on the basis of material adduced on record by the respehctive parties, vide judgment dated 22.07.2024 and order dated 30.07.2024, held the accused guilty of having committed offence punishable 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 Court below, accused preferred an appeal in the court of learned Additional Sessions Judge (CBI Court), Shimla, Himachal Pradesh, which also came to be dismissed vide judgment dated 10.03.2025, 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 for his acquittal after setting aside the judgments of conviction recorded by the courts below.

5. Before case at hand could be heard and decided on its own merit, parties have entered into compromise, whereby they ha.ve resolved to settle the dispute amicably inter se them.

6. Today during proceedings of the case, learned counsel for the accused, on instructions, states before this Coourt that accused has paid sum of Rs.2,40,000/- to the complainan t as full and final settlement. He states that on account of aforesaid amicable settlement arrived inter se parties, this Court, while exercuising power under Section 147 of the Act, may proceed to compounod the offence and acquit the accused from the charges framed against him.

7. Pursuant to order passed by this Court, complainant has come present in pherson and has been duly identified by Mr. Aishwarya Chauhan, Advocate. He states that he, of his own volition and without any external pressure, has entered into compromise with the accused. He states that since he ha