The Himachal Pradesh High Court quashed and set aside the judgment of conviction and compounded the offence under Section 138 Negotiable Instruments Act, 1881 after the accused settled with the complainant.

The Court relied on the decision of the Supreme Court in Damodar S. Prabhu V. Sayed Babalal H. (2010) 5 SCC 663, where according to the Court it was held that the Court, while exercising power under Section 147 of the Act, can proceed to compound the offence even after recording of conviction by the Courts below.

The bench of Justice Sandeep Sharma observed, “prayer for compounding the offence can be accepted in terms of judgment passed by the Hon’ble Apex Court in Damodar S. Prabhu V. Sayed Babalal H. (2010) 5 SCC 663, wherein it has been categorically held that court, while exercising power under Section 147 of the Act, can proceed to compound the offence even after recording of conviction by the Courts below.”

Advocate Mohar Singh appeared for the Appellant and Advocate Hamender Chandel appeared for the Respondent.

Brief Facts-

The complainant filed a case under Section 138 of the Negotiable Instruments Act alleging that the accused borrowed Rs 95k and issued a post-dated cheque, which was dishonoured due to insufficient funds. After the accused failed to repay, the trial Court convicted him. His appeal to the Sessions Judge as well as a Criminal Revision Petition was rejected. Before his arrest, the accused settled with the complainant. Present petition is filed seeking compounding of the offence and setting aside the conviction.

The Court mentioned the decision of the Supreme Court in K. Subramanian v. R. Rajathi 2010 (15) SCC 352, where it was held that given the provisions contained under Section 147 of the Act read with Section 320 of Cr.PC, compromise arrived can be accepted even after the recording of the judgment of conviction.

Accordingly, the Court permitted the parties to get the matter compounded in the light of the compromise.

Finally, the Court disposed of the Petition.

Cause Title: Satvir Singh v. Rajesh Pathania & Ors. (Neutral Citation: 2024:HHC:5757)

Appearance:

Appellant: Adv. Mohar Singh

Respondent: Adv. Hamender Chandel, AAG Rajan Kahol, AAG B.C. Verma and DAG Ravi Chauhan

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