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03.04.2026 passed by learned Additional Sessions Judge,

Panchkula, dismissing the appeal preferred against the judgment of

conviction and order of sentence dated 14.05.2024 passed by learned

Judicial Magistrate Ist Class, Kalka, vide which the petitioner was

convicted and sentenced to undergo simple imprisonment for a period of 6

months under Section 138 of the Negotiable Instrument Act, 1881 (for

short, ‘the Act’) and to pay compensation.

2. The facts relevant as narrated in the complaint filed under

Section 138 of the NI Act are that the in discharge of his liability towards

the respondent-complainant, the petitioner-accused issued a cheque

PARVEEN KUMAR

2026.05.18 16:55

I attest to the accuracy and

integrity of this

order/judgment.

bearing No.551274 dated 31.10.2019 in the sum of Rs.4,50,000/-.

However, on presentation thereof, the same was dishonoured and returned

with the remarks “Funds Insufficient”. Despite issuance of legal notice,

the petitioner failed to make the payment within the stipulated period. The

proceedings against him were initiated under Section 138 of the NI Act,

pursuant to which, he appeared and was released on bail. On finding

prima facie case under Section 138 of the NI Act, notice of accusation

was served upon him, to which he pleaded not guilty and claimed trial.

3. In order to prove his case, complainant appeared as CW 1

and also led documentary evidence. On closure of evidence, statement of

accused-petitioner under Section 313 Cr.P.C. was recorded, he denied all

the allegations raised against him and pleaded innocence.

4. After scrutinizing the evidence led by the parties, the trial

Court came to the conclusion that the complainant has successfully

proved his case against the petitioner-accused, and convicted and

sentenced him to undergo simple imprisonment for a period of 6 months

and pay compensation to the tune of Rs.6,75,000/-, to the complainant.

Aggrieved convict-petitioner filed appeal, which was dismissed by

learned Addl. Sessions Judge, Panchkula, vide impugned judgment dated

03.04.2026.

5. Hence, the present revision petition.

6. Learned counsel for the petitioner, at the very outset, submits

that the compromise has now been arrived at between the parties, based

on which CRM-21877-2026 has been filed under Section 147 of NI Act

PARVEEN KUMAR

2026.05.18 16:55

I attest to the accuracy and

integrity of this

order/judgment.

for compounding the offence. As per the compromise, the matter has been

amicably settled between the parties for an amount of Rs.2,60,000/- as full

and final settlement of all claims. The parties now do not wish to pursue

with the matter. He prays that the fee with regard to the same be waived

off, in view of his poor financial condition. He has with great difficulty,

managed to collect the money and settled the dispute as he wanted to put

an end to the same.

7. Learned counsel for the respondent affirms the factum of

compromise arrived at and in pursuant thereto, he has received the amount

as agreed. Thus, he, on instructions, submits that there is no objection, if

the prayer made by the petitioner is accepted.

8. It is apposite to refer to the judgment of Hon’ble The

Supreme Court in B.V.Seshaiah vs. The State of Telangana and

another 2023 Live Law (SC) 75, wherein it was held thus:

“10. In the case of M/S Meters and Instruments Private

Limited & Anr. Vs Kanchan Mehta1,this court held

that the nature of offence under section 138 of the N.I

Act is primarily related to a civil wrong and has been

specifically made a compoundable offence. The

relevant paragraph of the judgment has been extracted

herein:

“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. Dishonor of cheque causes

incalculable loss, injury and inconvenience to the Vide

the Banking, Public Financial Institutions and

Negotiable Instruments Laws (Amendment) Act, 1988

payee