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CRR-3093-2025 (O&M)

IN THE HIGH COURT OF PUNJAB AND HARYANA

AT CHANDIGARH

CRR-3093-2025 (O&M)

Harish Chander Kalra …....Petitioner(s).

Versus

Uma Dutt Paliwal …....Respondent(s).

Judgment Judgment Operative Part Uploaded on

reserved on pronounced on Pronounced or full

19.01.2026 05.02.2026 Fully pronounced 05.02.2026

CORAM: HON'BLE MR. JUSTICE ANOOP CHITKARA,

Present: Mr. Arjun Sheoran, Advocate for

Mr. Manish Boora, Advocate

for the applicant-petitioner(s).

Mr. B.S. Mamli, Advocate

for the respondent.

***

ANOOP CHITKARA, J.

Criminal CIS Case No.:NACT/95 of 2018 under Section 138 and 142 of the

Complaint Negotiable Instruments Act read with Section 420 IPC.

Date of decision: 08.06.2022

Criminal Criminal Appeal No.41 of 2022

Appeal CIS No.CRA-103 of 2022

Date of decision:02.05.2023.

Convict’s Penal provision Sentence

name

Harish S. 138 of the Rigorous imprisonment for six months

Chander Negotiable Instruments and to pay compensation equivalent to

Kalra Act, 1881 the cheque amount i.e. Rs.5,16,000/-

with interest @ 9% to the complainant

and in default, to further undergo simple

imprisonment for three months.

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1. This revision petition has arisen out of judgment dated 02.05.2023

passed by learned Additional Sessions Judge, Panipat, vide which the judgment

of conviction dated 08.06.2022 and order of sentence dated 09.06.2022 passed

by learned Judicial Magistrate Ist Class, Panipat have been upheld, whereby the

petitioner-accused was held guilty for offence under Section 138 of Negotiable

Instruments Act and was convicted and sentenced, as stated above.

2. Vide order dated 08.01.2026 of this Court, on joint request of the

parties, the matter was referred to the Mediation and Conciliation Centre of this

Court and the parties were directed to appear before it, where a mediator was

ordered to be appointed to mediate between the parties to reach an amicable

settlement.

3. The report of the mediator dated 16.01.2026 has been received,

whereby the parties have amicably settled the dispute by way of

compromise/settlement.

4. Counsel for the parties submitted that the matter has been settled

between the parties in mediation. They prayed for compounding of offence under

Section 138 of N.I. Act and acceptance of the revision petition.

5. Counsel for the respondent-complainant has admitted the factum

of compromise between the parties and submits that he has specific instructions

from the complainant/respondent that they have no objection in case the revision

petition is allowed and the petitioner is acquitted and the judgment of conviction

and order of sentence are set aside.

6. I have heard counsel for the parties and have perused the relevant

material placed on record.

7. As submitted by counsel for the petitioner, a settlement has been

arrived at between the parties before the Mediation and Conciliation Centre of

this Court. Learned counsel for the petitioner has submitted that the petitioner

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CRR-3093-2025 (O&M)

undertakes to adhere to the terms of the settlement.

8. The object and purpose of proceeding initiated under the

Negotiable Instruments Act is to provide a compensatory mechanism for

expeditious recovery of money and not just punishing the offender, which is a

secondary concern.

9. The Hon’ble Supreme Court in Meters and Instruments

Private Limited and another Vs. Kanchan Mehta (2018) 1 SCC 560, has held

as under:-

“7. This Court has noted that the object of the statute was to

facilitate smooth functioning of business transactions. The

provision is necessary as in many transactions’ cheques were

issued merely as a device to defraud the creditors. Dishonour

of cheque causes incalculable loss, injury and inconvenience to

the Vide the Banking, Public Financial Institutions and

Negotiable Instruments Laws (Amendment) Act, 1988 payee

and credibility of business transactions suffers a setback. At the

same time, it was also noted that nature of offence under Section