Sandeep Sharma, J. (Oral)

By way of instant application filed under Section 147 of Negotiable Instruments Act, prayer has been made by the applicant- accused for compounding of offence alleged to have been committed under Section 138 of the Act.

Precisely, the facts of the case as emerge from the record are that non-applicant/respondent/complainant (for short ‘complainant’) filed a complaint under Section 138 of the Negotiable Instruments Act (for short ‘Act’) in the competent court of law, alleging therein that accused with a view to discharge his liability, issued Cheque bearing No.000600 dated 09.12.2019, amounting to ₹10,00,000/- drawn on ICICI Bank, however, afore Cheque on its presentation to the Bank concerned, the same was dishonoured with the remarks “Funds Insufficient”. After receipt of aforesaid return memo, complainant served accused with a legal notice, however, since petitioner-accused failed to make the payment good within the time stipulated in the legal notice, respondent/complainant was compelled to initiate proceedings under Section 138 of the Act in the Court of learned Judicial Magistrate First Class, Court No.2, Sunder Nagar, District Mandi, Himachal Pradesh.

Learned trial Court on the basis of material adduced on record by the respective parties, vide judgment/order dated 29.06.2022/14.07.2022, held the petitioner-accused guilty of having committed offence under Section 138 of the Act and accordingly, convicted and sentenced him to undergo simple imprisonment for a period of five months and pay compensation to the tune of ₹12,00,000/- to the respondent-complainant.

Though, at the first instance, accused preferred an appeal in the Court of learned Additional Sessions Judge, Sunder Nagar, District Mandi, Himachal Pradesh, however, same was dismissed vide judgment dated 26.11.2022. Being aggrieved and dissatisfied with the aforesaid judgment passed by learned first appellate Court, applicant-accused preferred Criminal Revision No.407 of 2023 in this Court, which also came to be dismissed vide judgment dated 27.04.2026.

Since after passing of aforesaid judgment dated 27.04.2026, applicant-accused compromised the matter with the complainant, whereby accused has paid sum of ₹10,00,000/-, as full and final settlement, to the complainant, applicant-accused has approached this Court in the instant application praying therein for compounding of the offence under Section 147 of the Act.

Respondent No.1/complainant has come present in person and is being represented by Mr. Mukul Sood, Advocate. He states on oath that he of his own volition and without there being any external has entered into compromise with the petitioner-accused, whereby they have resolved to settle the dispute for a sum of ₹10,00,000/-. He states that since he has received the afore amount, as full and final settlement, he shall have no objection in case the judgments of conviction passed by the learned Court below are quashed and set aside and the petitioner is acquitted of the charges framed against him. His statement made on oath is taken on record.

While considering the prayer made in the application, the question which needs to be decided at first instance is that “whether after upholding the judgment of conviction and order of sentence passed by learned court below, this Court can proceed to compound the offence or not?.”

This Court vide judgment passed in Cr.MP No. 1197 of 2017 in Cr. Revision No. 394 of 2015 titled Gulab Singh v. Vidya Sagar Sharma, while relying upon judgment of Hon'ble Apex Court as well as other Constitutional Courts has already held that court, while exercising power under Section 147 of Act can proceed to compound offence even in those cases, where accused stands convicted. Relevant portion of the order passed by this court in order supra is reproduced as under:

“8. Before acceding to aforesaid joint request having been made by learned counsel for the respective parties, moot questio