IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH

235 Date of decision: 14.05.2026 Sukhwinder Singh ...Petitioner(s)

VERSUS State Bank of India and another ...Respondent(s)

CORAM : HON'BLE MR. JUSTICE VINOD S. BHARDWAJ Present :- Mr. T.P.S. Makkar, Advocate for the petitioner(s).

Mr. Mohit Kapoor, Sr. DAG Punjab.

Mr. Sumit Narang, Advocate for respondent No.1.

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VINOD S. BHARDWAJ, J. (Oral)

1. The instant revision petition has been filed against the impugned judgment of conviction and order of sentence dated 16.11.2021 passed by the Sub Divisional Judicial Magistrate, Guruharsahai vide which the petitioner had been convicted and sentenced to undergo rigorous imprisonment for a period of 01 year and to pay a compensation equivalent to the cheque amount to the complainant for the commission of offence under Section 138 of the Negotiable Instruments Act, 1881 and the impugned judgment dated 08.08.2024 passed by the Additional Sessions Judge-I, Ferozepur vide which the appeal preferred by the petitioner has been dismissed.

2. The petitioner-accused had borrowed a sum of Rs.16,00,000/- from the respondent-complainant/Bank on 24.06.2015, and in discharge of his legal liability, the petitioner issued cheque no. 650356 dated 31.03.2017 amounting to Rs.19,50,000/- in favour of the respondent-complainant/Bank.

However, the said cheque was dishonoured on presentation vide memo dated

16.05.2017 and returned with remarks ‘Funds Insufficient’.

3. The complainant then got served a legal Notice dated 19.05.2017 within the statutory period, calling upon the petitioner-accused to make the payment. However, the same was not done, and a complaint under Section 138 of the Negotiable Instruments Act came to be filed before the Sub Divisional Judicial Magistrate, Guruharsahai. On the basis of the preliminary evidence led by the complainant-respondent and on finding sufficient grounds, the petitioner-accused was summoned to face trial for the commission of an offence under Section 138 of the Negotiable Instruments Act, 1881. The petitioner-accused was served with a notice of accusation to which he pleaded not guilty and claimed trial. The Branch Manager of the complainant/Bank stepped into the witness box as CW1, reiterated the allegations made in the complaint and closed his preliminary evidence. The complainant also proved the relevant documents.

4. Vide judgment and order of sentence dated 16.11.2021, the petitioner-accused was convicted and sentenced as above for the commission of an offence under Section 138 of the Negotiable Instruments Act, 1881. The petitioner filed an appeal against the above-said judgment of conviction, and vide judgment dated 08.08.2024, the Additional Sessions Judge-I, Ferozepur, dismissed the appeal. The present petition has thus been filed.

5. Learned counsel for the petitioner contends that the matter has already been settled between the parties, and the petitioner has cleared all the dues. Therefore, he prays that the case in hand be permitted to be compounded as per Section 147 of the Negotiable Instruments Act. The relevant provision 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.”

6. Learned counsel appearing on behalf of respondent No. 1- complainant has acknowledged that the entire amount, along with interest, has also been paid and that he has no objection to the offence being compounded under Section 147 of the Negotiable Instruments Act, 1881. He has submitted his written statement to the said effect.

7. 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