IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of Decision: 06.03.2026.

Kalyan Sharma ...Petitioner.

Versus Raghubir Singh ...Respondent.

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CORAM: HON'BLE MRS. JUSTICE SUKHVINDER KAUR .......

Present: Mr. Anshul Sharma, Advocate for the petitioner.

Mr. Lalit Sharma, Advocate for the respondent.

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SUKHVINDER KAUR , J .

1. By way of this revision petition, the petitioner has challenged the judgment dated 29.01.2026 passed by learned Additional Sessions Judge, Palwal, vide which the judgment of conviction dated 29.05.2023 and order of sentence dated 31.05.2023 passed by learned Judicial Magistrate Ist Class, Palwal, has been upheld, whereby the petitioner was held guilty for offence under Section 138 of Negotiable Instruments Act and was convicted.

2. In CRR-284-2026, an application i.e. CRM-6028-2026 for compounding of offence under Section 138 of N.I. Act has been filed on the basis of compromise deed dated 07.02.2026 (Annexure A2) as well as affidavit of the complainant regarding the settlement (Annexure A3) have been filed.

3. Learned counsel for the petitioner submitted that the compromise has been effected between the parties and as per the compromise all the dues had been paid by the petitioner and as such, he prays for compounding of the offence and acceptance of the revision petition.

4. Vide order dated 11.02.2026 passed by Co-ordinate Bench of this Court, the parties were directed to appear in person before the trial Court and get their respective statements recorded with regard to the genuineness of the compromise.

5. On the basis of the statements so recorded, learned Magistrate has submitted report dated 20.02.2026 to the effect that the compromise has been effected between the parties voluntarily and without any coercion or undue influence.

6. Notice of motion.

7. Mr. Lalit Sharma, Advocate accepts notice on behalf of the complainant/ respondent.

8. Learned counsel representing the complainant/ respondent has admitted the factum of compromise and submits that he has specific instructions from the complainant/ respondent that he has no objection in case the revision petition is allowed and the petitioner is acquitted of the notice of accusation.

9. I have heard learned counsel for the parties and have perused the relevant material placed on record.

10. As submitted by learned counsel for the petitioner, during the course of proceedings, settlement was effected between the parties. In CRR-

284-2026 and affidavit of complainant/ respondent (Annexure A3) regarding the compromise has been placed on record. Learned counsel for the petitioner has submitted that disputed cheque amount has already been paid by the petitioner to the respondent and now nothing is due towards him, which is conceded by learned counsel for the respondent.

11. The object and purpose of proceeding initiated under the Act is to provide a compensatory mechanism for expeditious recovery of money and not just punishing the offender, which is a secondary concern.

12. 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 138 primarily related to a civil wrong and the 2002 amendment specifically made it compoundable…...

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18.2. The object of the provision being primarily compensatory, punitive element being mainly with the object of enforcing the compensatory element, compounding at the initial stage has to be encouraged bu