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(2026) Law Today Live Doc. Id. 21504
Decided on: 11.05.2026
For Petitioner(s):
Mr. Shivam Prashar, Adv., Mr. Adarsh Kumar Vashishta, Adv., Mr. Amol Chitravanshi, AOR
For Respondent(s):
Mr. Ajay Marwah, AOR, Mr. Swaroopanand Mishra, Adv., Mr. Mrigank Bhardwaj, Adv., Ms. Dhriti Sharma, Adv., Mr. Rahul Kumar, Adv., Mr. Ravideep Singh, Adv., Ms. Shivani Singh, Adv., Ms. Neeharika Mazumdar, Adv.
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Dishonour of cheque – Imprisonment sentence set aside upon deposit of compensation of Rs. 5,25,000.
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Negotiable Instruments Act, 1881 (26 of 1881), Section 138 – Dishonour of cheque – Sentence of imprisonment set aside upon deposit of entire compensation amount of Rs.5,25,000 – Compensation upheld and complainant permitted to withdraw the amount – Conviction and sentence to stand revived in case of non-deposit – Appeal allowed.
(Para 7-9)
ORDER
1. Leave granted.
2. The appellant faced a criminal trial under Section 138 of The Negotiable Instruments Act, 1881 on the ground that the cheque issued by him in discharge of the liability had been returned unpaid.
3. The said proceedings resulted in conviction of the appellant by judgment dated 09.03.2016 wherein the learned Magistrate sentenced the appellant to undergo simple imprisonment for one year and to pay compensation of Rs. 5,25,000/- to the complainant.
4. This was challenged before the appellate court, which directed suspension of sentence and directed the appellant to deposit 50 percent of the compensation.
5. Aggrieved by the said order dated 12.04.2016, appellant filed Criminal Miscellaneous No. 214 of 2016 before the jurisdictional High Court, and the High Court directed the appellant to furnish surety for the said amount within two months and upholding the suspension of sentence. Subsequently, the appeal came to be dismissed.
6. Thereafter, the revision petition also came to be dismissed on 05.11.2026. Hence, the present appeal is filed.
7. Undisputedly, during the pendency of the appeal, a sum of Rs. 2,62,500/- has been deposited as evident from Annexure P7 and subsequently, sum of Rs. 1,87,500/- on 27.03.2026 has been deposited as evident from Annexure P-11. Thereafter, the appellant deposited Rs. 75,000/- by demand draft No. 222060 dated 26.12.2025 drawn on Bank of Baroda, Branch Manali before the jurisdictional Trial Court. Thus, appellant has already deposited a sum of Rs. 5,25,000/- in total.
8. In these circumstances, we are of the considered view that sentence of imprisonment imposed on the appellant stands set aside and the amount of compensation as ordered by the learned Magistrate stands affirmed, and respondent-complainant is permitted to withdraw the said amount.
9. It is made clear that in the event of said amount as stated before this court has not been deposited by the appellant-accused before the jurisdictional court, the order of conviction and sentence imposed on the appellant would stand revived.
10. The appeal is allowed in the above terms.
11. Pending application(s), if any, shall stand disposed of.
Appeal allowed.
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