The primary objective of Section 138 of the Negotiable Instruments Act is to ensure the recovery of the due amount rather than punishment; therefore, a compromise between the parties leading to payment of the disputed amount warrants the acquittal of the accused.

Order

By way of filing the present revision petition under Section 438 r/w Section 442 of the Bharatiya Nagarik Suraksha Sanhita, 2023, the petitioner has challenged the judgment dt.09.06.2025 passed by Court of ld. Additional Civil Judge & Judicial Magistrate, Bandikui District Dausa, in Criminal Case No.362/2023 whereby ld. Magistrate has convicted the petitioner for commission of offence punishable under Section 138 of the N.I. Act & sentenced him to undergo two years simple imprisonment and ordered to pay a sum of Rs.15,00,000/- to the complainant-respondent, as compensation, and in default thereof, to further undergo one-month additional simple imprisonment.

The petitioner has also challenged the judgment dt.16.04.2026 passed by Court of ld. Additional Sessions Judge, No.1, Bandikui, District Dausa, in Criminal Appeal No.16/2025, whereby ld. Judge, while dismissing the aforesaid appeal, has confirmed the judgment of conviction & the order of sentence dt.09.06.2025 passed by the ld. Magistrate.

Facts of the present case, in brief, are that the complainant-respondent filed a complaint u/s.138 of N.I. Act against the petitioner before ld. trial Court alleging therein that the petitioner borrowed Rs.8,00,000/- from the complainant for personal necessity. Towards repayment thereof, he issued a cheque amounting to Rs.8,00,000/- to the complainant, which on presentation was dishonoured & returned with the remarks of "insufficient funds". The trial Court convicted the petitioner for alleged offence & sentenced him to undergo maximum period of two years simple imprisonment alongwith a fine. Aggrieved by the aforesaid order, petitioner preferred an appeal before ld. Appellate Court, which was also dismissed, while confirming the conviction & sentence awarded by the ld. Magistrate. Hence, this revision.

Learned counsel appearing for the accused-petitioner submits that the petitioner was on bail during the trial and presently he is in judicial custody. During pendency of present revision petition, both the parties have entered into a compromise dt.20.04.2026 & the dispute between them has been amicably settled. No dispute now remains pending. Counsel further submits that since a compromise has been arrived at between the parties by way of mutual consent, no useful purpose would be served by continuing the proceedings against the petitioner for the alleged offence. Therefore, the present petition may be allowed, the impugned judgments be quashed & set aside and the petitioner be acquitted from the charges levelled against him.

Learned Public Prosecutor for the State has submitted that an appropriate order may be passed by this Court.

Today, complainant, namely Kishanlal is present-in-person before this Court. He has been identified by his Counsel & his signature has also been obtained on the order-sheet of the Court.

Learned counsel appearing for the complainant/respondent submitted that he has no objection, if the impugned judgments are quashed & set aside and the petitioner is acquitted of the charges levelled against him in terms of compromise.

Heard learned counsel appearing for the parties. Perused the material made available on record.

As per compromise dt.20.04.2026, complainant/respondent has entered into a settlement/agreement with the petitioner & received the complete disputed amount.

Considering the submissions made at bar & the overall facts & circumstances of the case and the fact that a compromise has been arrived at between the parties, this Court finds that it would not be appropriate to continue upholding the judgments of the learned Courts below and maintain the conviction of the petitioner in the alleged offence, since both the parties have already amicably settled the dispute, continuing the case would serve no meaningful purpose.

The dispute is inter-se in between the parties and does not affect the society at large. The complainant has now entered into a compromise with the present petitioner.

The aim & purp