Page No.# 1/4 GAHC010142542025 2025:GAU-AS:13787 THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : Crl.Rev.P./391/2025 SRI ARUN DUTTA S/O KUKHESWAR DUTTA, R/O VILL.- ATHKOTIA, P.O.-AZAD, P.S.- PANIGAON, DIST.- LAKHIMPUR, ASSAM. VERSUS THE STATE OF ASSAM REP. BY THE P.P., ASSAM 2:SRI BABUL KR. LAHON S/O LATE MULARAM LAHON R/O VILL.- GOBORISHALI P.O.- BOGOLIJAN P.S.- NORTH LAKHIMPUR DIST.- LAKHIMPUR ASSAM Advocate for the Petitioner : MS A GOGOI, Advocate for the Respondent : PP, ASSAM, BEFORE HONOURABLE MRS. JUSTICE SHAMIMA JAHAN ORDER 15.10.2025 Heard Mr. S. Gogoi, learned counsel appearing for the petitioner. Also Page No.# 2/4 heard the learned counsel appearing for the respondent No. 2. The present application has been filed under Section 442/438 of BNSS, 2023 read with Section 528 of BNSS challenging the Judgment and Order dated 25.02.2025 passed by the Learned Court of Judicial Magistrate First Class, Lakhimpur, North Lakhimpur, in connection with N.I Case NO. 04/2021 under Section 138 of N.I Act. By the said Judgment and Order, the petitioner has been convicted under Section 138 of the N.I Act and a sentence to undergo SI for six (6) months and a fine of Rs. 5,30,000/- (Rupees Five Lakh Thirty Thousand) with default clause was imposed. In pursuant to the said judgment, it is said by the learned counsel appearing for the petitioner that the petitioner was incarcerated and he is inside the jail for 171 days and it is also stated at the bar that the cheque amount being Rs. 5,30,000/- (Rupees Five Lakh Thirty Thousand) has been paid by the petitioner to respondent No. 2 by executing an agreement on 04.09.2025. It was directed in the impugned Judgment and Order that the fine amount when realized shall be given to the complainant as compensation. In the said agreement it is stipulated that on 04.09.2025 the petitioner had given the full amount of the cheque to respondent No. 2 and that he has accepted the same with the further stipulation that in view of the same, the respondent has agreed Page No.# 3/4 that he would withdraw the case that he has filed before the Court and that he has no grievance against the petitioner. It has been settled by the Hon’ble Apex Court that offence under the N.I Act is a civil wrong and has been made specifically compoundable by Section 147 of the N.I Act which was inserted by the 2002 Amendment Act to that act. Further in M/s Gimpex Private Limited Vs. Manoj Goel reported in 2021 SCC Online SC 925, the Hon’ble Apex Court took into consideration the effect of settlement arrived between the parties and observed in the following terms. “28. Given that the primary purpose of Section 138 of the NI Act is to ensure compensation to the complainant, the NI Act also allows for parties to enter into a compromise, both during the pendency of the complaint and even after the conviction of the accused. The decision of this Court in Meters and Instruments (P) Ltd. v. Kanchan Mehta22 summarises the objective of allowing compounding of an offence under Section 138 of the NI Act: “18.2. The object of the provision being primarily compensatory, punitive element being mainly with the object of enforcing the compensatory element, compounding at the initial stage has to be encouraged but is not debarred at later stage subject to appropriate compensation as may be found acceptable to the parties or the court.” Page No.# 4/4 Therefore, it is clear that although dishonor of cheque entails criminal consequences, the legislature by virtue of Section 147 of the N.I Act has made it compoundable and the same can be compoundable at any stage of the proceeding specially when the parties arrive at a settlement. In the present case the compromise deed has been entered into on 04.09.2025 and the affidavit was also filed on the said date and it is seen that the petitioner has paid the full amount to the respondent and it is also noticed that the said agreement was without any coercion and at the own will of respondent No. 2. Therefore, in the light of the above discussions, this Court is of the considered view that the present revision deserves to be allowed and the impugned Judgment and Order dated 25.02.2025 passed in N.I Act Case No. 04/2021 by the Learned Court of Judicial Magistrate First Class, Lakhimpur, North Lakhimpur, Assam is set aside and the order of conviction and sentence imposed on the petitioner is quashed. The petitioner may be released forthwith if not required in some other case. The petition is disposed of. JUDGE Comparing Assistant