CRR-531-2025 (O&M) - 1- 117+277 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CRM-13607-2025 and CRM-16065-2025 in/and CRR-531-2025 (O&M) Date of decision: 30.04.2025 KRISHANA RANI AND ANOTHER ...PETITIONERS VERSUS AMIT KUMAR ...RESPONDENT CORAM: HON’BLE M R . JUSTICE H.S.GREWAL Present: Ms. Amarjit Kaur, Advocate for the applicant-petitioner. (Through video conferencing) Ms. Vini Mahajan, Advocate for the complainant. (Through video conferencing) **** H.S.GREWAL,J. (ORAL) CRM-13607-2025 This application has been filed under Section 528 of BNSS for placing on record the affidavit of the complainant/respondent. Allowed as prayed for and affidavit of the complainant/respondent is ordered to taken on record, subject to all just exceptions. CRM-16065-2025 This application has been filed for placing on record photocopy of original compromise deed effected between the parties dated 11.03.2025 as Annexure A-1 in compliance of order dated 27.03.2025. Allowed as prayed for and photocopy of original compromise deed is ordered to be taken on record as Annexure A-1. Renu Rawat 2025.05.01 04:53 I attest to the accuracy and integrity of this document CRR-531-2025 (O&M) - 2- CRM-8214-2025 and CRR-531-2025 1. The petitioner has filed the present revision petition against the impugned judgment dated 10.02.2025 passed by the learned Additional Sessions Judge, Chandigarh and the impugned judgment of conviction and order of sentence dated 11.01.2018 passed by the Court of Judicial Magistrate Ist Class, Chandigarh whereby, the petitioner has been convicted under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as the “Act”) and was sentenced to undergo rigorous Imprisonment for a period of one year and to pay the compensation equivalent to cheque amount i.e. Rs. 2,00,000/- within a period of one month. 2. During the course of hearing, it has been brought to the notice of the Court that matter has been compromised between the parties vide compromise deed (Annexure P-1) and the entire settled amount has already been paid by the petitioner to respondent. 3. On the other hand, learned counsel for respondent admitted the factum of compromise and further stated that entire settled amount is received by respondent and has no objection if the offence punishable under the Act is compounded and the petitioner may be acquitted. Prayer has been made by the learned counsel for the petitioner that the present petition may be allowed. 4. It is settled law that the proceedings initiated under the Act are quasi-criminal in nature and the object and purpose of this enactment is to provide a compensatory mechanism for expeditious recovery of money as opposed to punishing the accused. The Hon’ble Supreme Court in R. Vijayan Vs. Baby (2012) 1 SCC 260 has considered the said issue and come Renu Rawat to the conclusion that punishing the offender is secondary concern. 2025.05.01 04:53 I attest to the accuracy and integrity of this document CRR-531-2025 (O&M) - 3- 5. The amendment carried out in the year 2002 in the NI Act intended to make the nature of offence under Section 138 of the NI Act as a civil wrong while making it compoundable. A two Judge Bench of the Hon’ble Supreme Court in Meters and Instruments Private Limited and another Vs. Kanchan Mehta (2018) 1 SCC 560, speaking through Justice A.K. Goel has held as under:- “7. This Court has noted that the object of the statute was to facilitate smooth functioning of business transactions. The provision is necessary as in many transactions’ cheques were issued merely as a device to defraud the creditors. Dishonour of cheque causes incalculable loss, injury and inconvenience to the Vide the Banking, Public Financial Institutions and Negotiable Instruments Laws (Amendment) Act, 1988 payee and credibility of business transactions suffers a setback. At the same time, it was also noted that nature of offence under Section 138 primarily related to a civil wrong and the 2002 amendment specifically made it compoundable…... xxxx xxxx xxxx 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. 18.3. Though compounding requires consent of both parties, even in absence of such consent, the court, in the interests of justice, on being satisfied that the complainant has been duly compensated, can in its discretion close the proceedings and discharge the accused.” Renu Rawat 2025.05.01 04:53 I attest to the accuracy and integrity of this document CRR-531-2025 (O&M) - 4- 6. Moreover, a two Judge Bench of the Hon’ble Supreme Court in JIK Industries Limited and others Vs. Amar Lal V. Jumani and another (2012) 3 SCC 255 has examined the issue whether for compounding of an offence, consent of aggrieved party is required and speaking through Justice Asok Kumar Ganguli, following was held:- “82. A perusal of Section 320 makes it clear that the provisions contained in Section 320 and the various sub- sections is a code by itself relating to compounding of offence. It provides for the various parameters and procedures and guidelines in the matter of compounding. If this Court upholds the contention of the appellant that as a result of incorporation of Section 147 in the NI Act, the entire gamut of procedure of Section 320 of the Code are made inapplicable to compounding of an offence under the NI Act, in that case the compounding of offence under the NI Act will be left totally unguided or uncontrolled. Such an interpretation apart from being an absurd or unreasonable one will also be contrary to the provisions of Section 4(2) of the Code, which has been discussed above. There is no other statutory procedure for compounding of offence under the NI Act. Therefore, Section 147 of the NI Act must be reasonably construed to mean that as a result of the said section the offences under the NI Act are made compoundable, but the main principle of such compounding, namely, the consent of the person aggrieved or the person injured or the complainant cannot be wished away nor can the same be substituted by virtue of Section 147 of the NI Act.” 7. Offence punishable under Section 138 of the Act is a compoundable offence. It appears that in the present case, parties have settled their dispute with Renu Rawat regard to dishonour of cheque in question. In the given circumstances, the 2025.05.01 04:53 I attest to the accuracy and integrity of this document CRR-531-2025 (O&M) - 5- petitioner deserves to be acquitted of the offence punishable under Section 138 of the Act. 8. For the foregoing reasons, the present petition is allowed and the impugned judgments passed by the Courts below are set aside and the petitioner is acquitted of the notice of accusation framed against him under Section 138 of the Act. 9. The petitioner be released on bail if he is not required in any other case. 10. Pending CRM(s), if any, are also disposed of accordingly. 30.04.2025 (H.S.GREWAL) renu JUDGE Whether speaking/reasoned: Yes/No Whether reportable: Yes/No Renu Rawat 2025.05.01 04:53 I attest to the accuracy and integrity of this document