IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH

305 Date of decision: 29.10.2025 Palwalinder Kaur ..Petitioner VERSUS State of Punjab and another ...Respondents CORAM : HON'BLE MR. JUSTICE VINOD S. BHARDWAJ Present :- Mr. Rakesh Kumar, Advocate, for the petitioner.

Mr. Mohit Kapoor, Sr.DAG, Punjab.

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VINOD S. BHARDWAJ, J. (Oral)

1. The instant petition has been filed against the impugned judgment and order of sentence dated 28.02.2023 passed by the Judicial Magistrate First Class, Kapurthala, whereby, the petitioner had been convicted and sentenced to undergo rigorous imprisonment for a period of one year for commission of offence under Section 138 of the Negotiable Instruments Act, 1881 and the impugned judgment dated 09.05.2025 passed by Additional Sessions Judge, Kapurthala vide which appeal preferred by the petitioner has been dismissed.

2. Learned counsel for the petitioner contends that the matter has been amicably resolved between the parties and entire due amount stands paid by the petitioner to the bank. In this regard, statement of Ms. Renu Bala, wife of Sandip, working as an Accountant and also holding the charge of Branch Manager, Bhandal Bet, District Kapurthala alongwith Aadhaar Card and certificate issued by the respondent-Cooperative Bank have also been taken. The same are marked as ‘Mark A’, ‘Mark B’ and ‘Mark C’

respectively (with green pen) and the same are taken on record.

Registry is directed to tag the same at appropriate place.

Counsel for the petitioner thus prays that the case in hand be permitted to be compounded as per Section 147 of the Negotiable Instruments Act. The relevant provisions of the Act reads thus:-

“147 Offences to be compoundable.

Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), every offence punishable under this Act shall be compoundable.”

3. Ms. Renu Bala appearing on behalf of the respondent-Bank has acknowledged that the entire amount already stands remitted and that she has no objection to the offence being compounded under Section 147 of the Negotiable Instruments Act, 1881.

4. The issue regarding compounding under the Negotiable Instruments Act at the stage of appeal as well as revision has come before this court as well as before the Hon'ble Supreme Court and they have upheld that the powers under Section 147 of the Negotiable Instruments Act can be invoked at any stage of the proceedings i.e. at the stage of trial, appeal or at the revisional jurisdiction and that the courts should be liberal in exercising such powers.

5. The Hon'ble Supreme Court in the matter of K.M. Ibrahim Vs. K.P Mohammed & Another, passed in Criminal Appeal No.2281 of 2009 decided on 02.12.2009 held as under:-

“5. Appearing for the appellant, Mr. Mukul Rohtagi, learned Senior Advocate, contended that since a specific power had been given to the parties to a proceeding under the Negotiable Instruments Act under Section 147 to compound the offence, there could be no reason as to why the same cannot be permitted even after conviction, which had been affirmed upto the High Court. It was urged that in order to facilitate settlement of disputes, the legislature thought it fit to insert Section 147 by Amending Act 55 of 2002. Such amendment came into effect from 6th February, 2003, and provided that notwithstanding anything contained in the Code of Criminal Procedure, 1973, every offence punishable under the Act would be compoundable.

6. Mr. Rohtagi urged that in view of the non obstante clause, the provisions of Section 147 were given an overriding effect over the Code and in view of the clear mandate given to the parties to compound an offence under the Act, reference to Section 320 Cr.P.C. can be made for purposes of comparison only in order to understand the scope of Section 147 of the Negotiable Instruments Act.

7. Mr. Rohtagi submitted that the said position had been accepted by this Court in various decisions, such as in the case of O.P. Dholakia vs. State of Haryana & An