An offence punishable under Section 138 of the Negotiable Instruments Act can be compounded under Section 147 of the Act even after the conviction has been recorded and upheld by higher courts, provided a compromise is reached between the parties.

Sandeep Sharma, J.

(Oral)

By way of inostant application filed under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (for short ‘the BNSS’) read with Section 147 of the Negotiable Instruments Act (for short ‘Act’) prayer has been made by the applicant-accused for compounding of offence alleged to have been committed by him under Section 138 of the Act.

Precisely, the facts of the case as emerge from the record are that respondent/complainant filed a complaint under Section 138 of the Negotiable Instruments Act in the competent court of law, alleging therein that accused view to discharge his liability issued cheque bearing No.680703 dated 30.8.2022 amounting to Rs. 6,08,793/- in favour of the complainant, however aforesaid cheque on its presentation to the bank concerned was dishonoured on account of “funds insufficient”. Since accused failed to make the payment good within the stipulated period despite having received legal notice issued to him, complainant had no option but to initiate proceedings under Section 138 of the Act in the competent court of law.

Learned trial Court on the basis of material adduced on record by the respective parties, vide judgment/order dated 28.2.2025, held the petitioner-accused guilty of having committed offence puHnishable under Section 138 of the Act and accordingly, convicted and sentenced him as per the description given herein above.

Being aggrieved and dissatisfied with the aforesaid judgment of conviction recorded by the court below , petitioner-accused preferred an appeal before the learned first appellate Court, but the same was dismissed vide judgment dated 1.8.2025u. Being aggrieved and dissatisfied with the aforesaid judgment passed by learned first appellate court, applicant-accused preferred Criminal Revision No.68 of 2026 in this Court, which also came to be dismissed vide judgment dated 20.4.2026.

Since after passing of aforesaid judgment dated 20.4.2026, applicant-accused has compromised the matter with the non-applicant/respondent/complainant, whereby accused has paid the entire amount 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 read with Section 528 of the BNSS.

Learned counsel for the non-applicant/respondent while acknowledging the aforesaid factum of compromise, states that since complainant has received the entire compensation amount from the accused, he shall have no objection in case the judgments of conviction and sentence passed by the courts below as well as this Court are quashed and set aside and the petitioner is acquitted of the charge framed against him.

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 sentHence passed by learned court below, this Court 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 uproceed 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 question arise for determination of this Court is whether it has power to review/recall hits own order/judgment passed in Criminal Revision No.394 of 2015, wherein judgment of conviction recorded by both the Courts below came to be upheld.

9. Mr. Manohar Lal Sharma, learned counsel representing the petitioner, has invited attention of this Court to the judgment passed by Hon’ble High Court of Rajast