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SANDEEP SHARMA, J. (ORAL) –

Instant criminal revision petition, lays challenge to judgment dated 21.12.2022, passed by the learned Additional Sessions Judge, Kinnaur at Rampur Bushehar, District Shimla, Himachal Pradesh, in CIS Case Regd. No. 23/2022, affirming judgment of conviction and order of sentence dated 17.5.2022, passed by the learned Additional Chief Judicial Magistrate, Rampur, District Shimla, Himachal Pradesh, in Criminal Case Regd. No.197/2018, whereby the learned trial Court while holding the petitioner-accused guilty of having committed offence punishable under Section 138 of the Negotiable Instruments Act (in short the “Act"), convicted and sentenced him to undergo simple imprisonment for a period of one year and pay compensation to the tune of Rs. 5,00,000/- to the complainant.

2. Precisely, the facts of the case, as emerge from the record are that respondent-complainant instituted a complaint under Section 138 of the Act, in the competent court of law, alleging therein that accused with a view to discharge his liability issued cheque amounting to Rs. 3,97,000/-, to the complainant, but fact remains that aforesaid cheque on its presentation, was dishonoured on account of insufficient funds. Since petitioner-accused failed to make the payment good within the time stipulated in the legal notice, respondent/complainant was compelled to initiate proceedings before the competent Court of law under Section 138 of the Act.

3. Learned trial Court on the basis of material adduced on record by the respective parties, vide judgment/order dated 17.5.2022, held the petitioner-accused guilty of having committed offence under Section 138 of the Act and accordingly, convicted and sentenced him as per the description given herein above.

4. Being aggrieved and dissatisfied with the aforesaid judgment of conviction recorded by the court below, accused preferred an appeal in the court of learned Additional Sessions Judge, Kinnaur at Rampur Bushehar, District Shimla, Himachal Pradesh, which also came to be dismissed vide judgment dated 21.12.2022, as a consequence of which, judgment of conviction recorded by the learned trial Court came to be upheld. In the aforesaid background, present petitioner-accused has approached this Court by way of instant proceedings, seeking therein his acquittal after setting aside the judgments of conviction recorded by the courts below.

5. Vide order dated 24.3.2023, this Court suspended the sentence imposed by the court below subject to the petitioner’s depositing 50% compensation amount.

6. Before case at hand could be heard and decided on its own merits, parties have arrived into a compromise, whereby petitioner-accused has agreed to pay the entire compensation amount to the complainant and as such, has filed an application bearing CrMP No. 1105 of 2024, under Section 147 read with Section 138 of the Negotiable Instruments Act, praying therein to set-aside the impugned judgments of conviction and sentence recorded by the court below.

7. On 27.5.2024, parties had come present to the Court and their statements were also recorded.

8. While fairly acknowledging factum with regard to compromise and receipt of Rs. 2,49,600/- by way of demand draft, Mr. Parmod Singh Thakur, learned counsel appearing for the respondent-complainant stated that his client shall have no objection in compounding the offence in case the amount (i.e. Rs.1,71,000/- lying deposited with the Registry of this Court and Rs.79,400/- with trial court,) is ordered to be released in favour of the complainant.

9. Having taken note of the fact that entire amount of compensation has been agreed to be paid to the respondent-complainant and respondent has no objection in compounding the offence, this Court sees no impediment in accepting the prayer made on behalf of the petitioner for compounding of offence while exercising power under Section 147 of the Act as well as in terms of guidelines issued by the Hon’ble Apex Court in Damodar S. Prabhu V. Sayed Babalal H. (2010) 5 SCC 663 = (2010) Law Today Live Doc. Id. 15231, 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.

10. Consequently, in view of the above, present matter is ordered to be compounded and impugned judgments of conviction and sentence dated 21.12.2022 and 17.5.2022, passed by the courts below are quashed and set-aside and the petitioner-accused is acquitted of the charge framed against him under Section 138 of the Act. Interim order, if any, is vacated. Bail bonds, if any, discharged. Registry of this Court as well as learned trial court are directed to release the amount, if any, in favour of the respondent-complainant, by remitting the same in his saving bank account, detail whereof shall be furnished within one week. The petition is disposed of alongwith pending applications, if any.

Order accordingly.

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