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CRR-271-2022 1

IN THE HIGH COURT OF PUNJAB AND HARYANA AT

CHANDIGARH

272 CRR-271-2022

Date of decision: 14.05.2026

MADAN SINGH .... PETITIONER(S)

VERSUS

GAURISH TRADING COMPANY & ANR. ...RESPONDENT(S)

CORAM: HON’BLE MR. JUSTICE JASJIT SINGH BEDI

Present: Mr. Jaspreet Kaur Somal, Advocate for the petitioner.

Mr. Manglesh Kumar, Advocate for

Mr. Shakti Mehta, Advocate for respondent No.1.

Mr. Anil Kumar Lamdharia, Advocate

for respondent No.2-State.

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JASJIT SINGH BEDI, J. (Oral)

The present revision petition has been filed against the

judgment dated 21.12.2021 passed by the Additional Sessions Judge,

Chandigarh vide which the appeal preferred by the accused-petitioner

against the judgment of conviction and order of sentence dated

04.09.2018/05.09.2018 passed by the Judicial Magistrate Ist Class,

Chandigarh has been dismissed.

2. The brief facts of the case are that the accused-petitioner in

discharge his liability issued a cheque bearing No.016588 dated

07.01.2017 for a sum of Rs.3,99,107/- drawn at IDBI Bank, Sohana, in

favour of the complainant-respondent No.1. On presentation of the

aforesaid cheque by the complainant with his banker, the same was not

encashed and was dishonoured with the remarks ‘Funds Insufficient’ vide

a return memo dated 11.01.2017. The accused-petitioner was served with

KUSUM

2026.05.14 18:55

I attest to the accuracy and

integrity of this document

PHHC Chandigarh

CRR-271-2022 2

a legal notice dated 25.01.2017 for making the payment but the accused-

petitioner failed to do so, leading to initiation of proceedings under

Section 138 of the Negotiable Instruments Act, 1881.

3. In the complaint under Section 138 of the Negotiable

Instruments Act, 1881 filed by the complainant/respondent No.1, the

accused/petitioner was summoned to face trial under Section 138 of the

Negotiable Instruments Act. The evidence was led and ultimately, the

accused/petitioner was held guilty and accordingly, convicted for the

offence punishable under Section 138 of the Negotiable Instruments Act,

1881 and sentenced to undergo imprisonment for one year along with

compensation equivalent to the cheque amount, and in default of

payment of compensation along with interest, further undergo simple

imprisonment for two months.

4. Aggrieved against the said judgment of conviction and order

of sentence, the accused/petitioner preferred an appeal before the

Additional Sessions Judge, Chandigarh which came to be dismissed vide

a judgment dated 21.12.2021.

5. Still aggrieved, the present revision petition has been

preferred by the accused-petitioner.

6. The learned counsel for the petitioner contends that during

the pendency of the present petition, a compromise has been effected

between the parties. As against the cheque amount of Rs.3,99,107/-,

Rs.4,50,000/- has been paid to the learned counsel for the complainant-

respondent No.1 as full and final payment. A copy of the compromise is

taken on record as Annexure A-2. Thus, nothing remains due towards the

KUSUM

2026.05.14 18:55

I attest to the accuracy and

integrity of this document

PHHC Chandigarh

CRR-271-2022 3

complainant-respondent No.1. He further contends that in view of

Section 147 of the Negotiable Instruments Act read with Section 320

Cr.P.C. where a settlement has been effected, the offence under Section

138 of the Negotiable Instruments Act can be compounded on account of

the fact that a mutual compromise has been effected between the parties.

7. The learned counsel for the State-respondent No.2 and the

counsel for the complainant-respondent No.1 contend that as the matter

has been settled between the parties, they have no objection if the prayer

of the learned counsel for accused-petitioner for compounding the

offence under Section 138 N.I. Act is allowed and the petitioner is

acquitted of the charges framed against him.

8. I have heard the learned counsel for both the parties.

9. This Hon’ble Court in ‘Ramesh Chander Vs. State of

Haryana and another, 2007(1) RCR (Criminal) 245’ held as under:-

“4. As per the provisions of S